Business, 25.06.2020 02:01 justinpatengale2002

On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $480 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required:
Determine the price of the bonds on September 30, 2018.

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Answer from: mandyt6058

The price of the bonds today is $397.64 million (rounded off to two decimal places)

Explanation:

The price of a bond is calculated as the present value of the face value of the bond discounted at the market interest rate plus the present value of the annuity of interest payments related to the bond discounted at the market interest rate or the Yield to Maturity (YTM).

The formula for the price of the bond is attached hereby.

Semi annual coupon rate = 8%/2 = 4%

Semi annual market interest rate = 10% / 2 = 5%

Number of semi annual interest periods = 20 * 2 = 40 periods

The interest paid by the bond semi annually is = 480 * 0.04 = $19.2 million

Price of the bond = 19.2 * [(1 - (1+0.05)^-40) / 0.05] + 480 / (1+0.05)^40

Price of the bond = $397.6363855 million rounded off to $397.64 million

On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of

Answer from: Quest

corrosion is a natural process, which converts a refined metal to a more chemically-stable form, such as its oxide, hydroxide, or sulfide. it is the gradual destruction of materials (usually metals) by chemical and/or electrochemical reaction with their environment.

explanation:

Answer from: Quest

bd = 9 cm

step-by-step explanation:

in a 30°-60°-90° triangle, the ratio of side lengths is 1 : √3 : 2. that is, the longest side (hypotenuse) is twice the length of the shortest side.

all of the triangles in your geometry are 30°-60°-90° triangles. ac is the hypotenuse of δacd, and the short side of δabc.

the short side ad of δacd will be half the length of ac, so 3 cm. the hypotenuse ab of δabc will be twice the length of ac, so 12 cm. segment bd is the difference of the lengths ab and ad, so is

bd = ab -ad

bd = 12 cm - 3 cm = 9 cm

comment on side length ratios

you can figure the ratios of side lengths in a 30°-60°-90° triangle by considering the trig ratios of the angles. or you can figure the length of the altitude of an equilateral triangle of side length 2 using the pythagorean theorem.

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