The bonds have a 7.0% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt?

$17,883,320

Explanation:

Rate of coupon 7.0% par value = FV$1,000Yrs to maturity 10 years Period/Yr2Periods = Years × 2 = N20Going annual rate = rd= YTM11.0%Periodic rate = rd/2 = I/YR5.5%Coupon rate × Par/2 = PMT$35.00Price of the bonds = PV$760.99. To Determine the number of bonds: Book value on balance sheet$23,500,000Par value$1,000Number of bonds = Book value/Par value23,500Calculate the market value of bonds:Mkt value = PV × Number of bonds = $17,883,320

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the answerr would be 1