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Analyzing bond price changes [LO3] Katie Pairy Fruits Inc. has a $1,900, 20-year bond outstanding with a nominal yield of 16 percent (coupon equals 16% x $1,900 = $304 per year). Assume that the current market-required interest rate on similar bonds is now only 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.
a. Compute the current price of the bond. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) Current price of the bond $
b. Find the present value of 4 percent x $1,900 (or $76) for 20 years at 12 percent. The $76 is assumed to be an annual payment. Add this value to $1,900. (Do not round intermediate calculations. Round your final answer to 2 decimal places. Assume interest payments are annual.) Present value $
Mark wants to buy a new car in three years. The car is expected to cost 80,000 in 3 years. If Mark can find an investment yielding 12% over the three year period,
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Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years.
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Determine the unit contributions and contribution margins for each brand at the unit level
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