a. What is the price of a $1,000 par value bond with a 6% coupon rate paid semiannually, if the bond is priced to yield 5% and it has 9 years to maturity?
b. What would be the price of the bond if the yield rose to 7%.
c. What is the current yield on the bond if the YTM is 7%?
Answer:
a.
Bond Price = $1071.766818 rounded off to $1071.77
b.
Bond Price = $934.0515914 rounded off to $934.05
c.
Current Yield = 0.06423 or 6.423%
Explanation:
a.
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.06 * 6/12 = $30
Total periods (n) = 9 * 2 = 18
r or YTM = 0.05 * 6/12 = 0.025 or 2.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 30 * [( 1 - (1+0.025)^-18) / 0.025] + 1000 / (1+0.025)^108
Bond Price = $1071.766818 rounded off to $1071.77
b.
Replacing YTM or r with = 7% * 6/12 = 3.5% or 0.035 in the above formula with everything else being constant, we calculate the price to be,
Bond Price = 30 * [( 1 - (1+0.035)^-18) / 0.035] + 1000 / (1+0.035)^108
Bond Price = $934.0515914 rounded off to $934.05
c.
The current yield is the coupon or interest payment made by the bond over a year which is expressed as a percentage of its current price.
Current Yield = (30 * 2) / 934.05
Current Yield = 0.06423 or 6.423%
Macroeconomic is the branch of economics that focuses on ?
Answer:
economic principles affecting entire countries
Explanation:
During an interview, _______________questions require you to use your own experiences and attributes to craft answers and often deal with soft-skill areas such as teamwork, communication, leadership, conflict resolution, problem solving, mistakes, and job commitment.
Answer:
Behavioral questions
Explanation:
The answer to this question is behavioral questions. Also known as Behavioral interviewing, the focus of this kind or stage of interview is to know the experience of the candidate that is being interviewed. Speaking of experiences certain informations are required here, like;
Asking the candidate to tell how they have shown certain behaviors, abilities, skills and also knowledge. And also to answer questions on basic workplace scenarios concerning areas such as conflict resolution, leadership, mistakes, job commitment, e.t.c
What types of political, economic and competitive challenges does MTV network international face by operating worldwide
Answer:
The answer is below
Explanation:
Some of the type of Political Challenges MTV network international face by operating worldwide includes:
1. Macro risks: these are risks relating to seizure or takeover by the government of the countries they are operating.
2. Micro risks: these include corruption, negative bias, or discrimination against the company due to MTV being a foreign company. It could also include excessive taxes levied against them.
Some of the type of Economic challenges MTV network international face by operating worldwide includes:
1. Inflation in the country of operation
2. Recession time in the economy the country of operation
3. Cost of employment advantages in the country of operation
Some of the type of competitive challenges MTV network international face by operating worldwide includes:
1. Adaptation to varying local cultures to draw the needed viewers
2. Transformation of the emerging technologies to meet and create an edge above other competitors in the local communities, regions, and the world at large.
Credit terms of n/15 EOM were printed on an invoice. Explain what this means,
The credit terms stand for net 15 days after end of month.
The credit period ends on the 15th of the month.
The discount period lasts only 15 days from the invoice date.
The buyer will receive a 15% discount if the invoice is paid by the 15 of the
Answer:
The credit terms stand for net 15 days after end of month.
Explanation:
An abbreviation EOM when appearing on an invoice stands for the end of the month. n/15 means net 15 days. Therefore, n/15 EOM in full is net 15 days after the of the month.
This credit term implies that the amount due is payable by the 15th day after the end of the month which the invoice was issued. The credit term does indicate any discounts. The invoice should be settled in full. The seller expects payment not later than the 15th day of the following month from the invoice date.
_____ potential refers to the percentage of a market potential that a specific company expects to sell in a specific international market.
Answer: sales potential
Explanation:
Sales potential refers to the percentage of a market potential that a specific company expects to sell in a specific international market.
Sales potential is simply the market share for a company that's being estimated to be captured by the said company for a particular time period in the market.
____ is a referral service that employees can use to seek professional treatment for emotional problems or substance abuse.
Answer:
Employee assistant programs
Explanation:
An employee assistant prgram is a program organized by organizations to assist their employees' personal problems which are hindering their performance in work-place.
EAP's tend to assist those employees that suffer from alcohol abuse, emotional abuse, substance abuse, etc. EAP's is a short-term counselling or follow-up sessions provided to employees facing above-mentioned abuses.
Therefore, the correct answer is employee assistant programs.
Under the ABC costing method,
a. departments are identified as activities.
b. activity rates are calculated by dividing the budgeted activity cost by the total activity-base usage.
c. the budgetary activity costs are assigned to products using factory overhead rates for each activity.
d. All of these choices are correct.
Answer:
d. All of these choices are correct.
Explanation:
Activity Based Costing system is the cost attribution to cost units (products) on the basis of benefits received from indirect activities, that is overheads that can not be allocated to a particular product or process.
So the process involves identifying activities driving the overheads. Determining the activity rates and assigning the costs using activity rate.
So, all the options given are applicable.
Martin Company currently produces and sells 40,000 units of product at a selling price of $12. The product has variable costs of $6 per unit and fixed costs of $150,000. The company currently earns a total contribution margin of: ________.
a. $280,000
b. $200,000
c. $240,000
d. $90,000
Answer:Total contribution margin = $240,000---c
Explanation:
Contribution margin is the revenue left after removing the variable costs that are incurred in producing a product. This margin helps one to know how profitability each item is that a company produces and puts up for sale.
It is calculated as
Contribution per unit = selling price per unit - variable costs per unit.
$12-$6 = $6
Total contribution margin = Contribution per unit x number of units sold.
$6 x 40,000 units
= $240,000
Ms. Smith employs 50 salespeople to sell copiers. If she wants information on the typical number of copiers sold by a salesperson, which Data Analysis tool should she use
Answer:
Descriptive statistics
Explanation:
If Ms smith wants information on the typical number of copiers sold by a salesperson she has to use descriptive statistics.
Descriptive statistics is used to describe data. It gives basic summary of the sample and also measures. It entails the usage and analysis of the collected data. Therefore descriptive statistics is the data analysis tool that she would need.
Knowing the components and consequences of equity theory, one solution for managers looking to restore equity is
Complete Question:
Knowing the components and consequences of equity theory, one solution for managers looking to restore equity is
A) to provide training opportunities to employees
B) to reduce employee inputs
C) give employees more responsibility
Answer:
Knowing the components and consequences of equity theory, one solution for managers looking to restore equity is
A) to provide training opportunities to employees.
Explanation:
The equity theory is a motivation theory with the idea that what an employee receives for their work affects their motivation. This means an employee will generally attempt to strike a balance between what they give to the organization and what they get in return. Since employees are expected to give more to their organizations, managers should provide more training opportunities to their employees as a way of restoring equity.
Maddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $6,000. With an annual discount rate of 8%, calculate the value today of receiving $6,000 in five years.
Answer:
$4,038
Explanation:
Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.
Present Value = Future Value x (1/ ( 1 + interest rate ) ^ number of periods)
Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)
Present Value = 6,000 x 0.68058
Present Value = $4,038
A loan of $1000 is to be paid off in 10 equal annual payments. The interest rate is 5% per year compounded annually.
A) If the first payment is made at EOY 1, what is the annual payment?
B) If the first payment is made at EOY 0, what is the annual payment?
Answer:
a. $129.50
b. $123.34
Explanation:
We are Calculating the Annual Payment Using the TVM Calculation,
a. PV = 1,000, FV = 0, T= 10, I = 0.05. If the first payment is made at end of year 1, the TVM calculator is adjusted to End mode
Annual payment = PMT(PV, FV, T, I]
Annual payment = PMT( 1,000, 0, 10, 0.05)
Annual payment (PMT) = $129.50
b. PV = 1,000, FV = 0, T= 10, I = 0.05. If the first payment is made at end of year 0, the TVM calculator is adjusted to Beginning mode
Annual payment = BEG PMT(PV, FV, T, I]
Annual payment = BEG PMT( 1,000, 0, 10, 0.05)
Annual payment (PMT) = $123.34
At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented. Calculate the absolute value of the price elasticity of demand for canoe rentals using the midpoint formula.
A) 2.
B) 1.25.
C) 0.9.
D) 0.75.
Answer:
C) 0.9.
Explanation:
The calculation of the price elasticity of demand is shown below:
Price elasticity of demand is
= (Change in quantity demanded ÷ average of quantity demanded) ÷ (Change in price ÷ average of price)
where,
q1 = 11
q2 = 9
p1 = $100
p2 = $125
So,
= {(9 - 11) ÷ (9 + 11) ÷ 2} ÷ {($125 - $100) ÷ ($125 + $100) ÷ 2 }
= {-2 ÷ 10} ÷ {25 ÷ 112.5 }
= -0.9
= 0.9
At the end of 2021, Windsor Co. has accounts receivable of $749,900 and an allowance for doubtful accounts of $23,580. On January 24, 2022, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes a write-off of $4,564.
(a)
Prepare the journal entry to record the write-off. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
DR Allowance for Doubtful Debt $4,564
CR Accounts Receivable $4,564
Using the Allowance method means that an allowance has already been provided from which uncollectible accounts will be deducted from.
When an amount is uncollectible therefore, it will be debited to the Allowance account to reduce it. Accounts receivable will be credited to recognise that a receivable is now uncollectible.
You are an entrepreneur in the cyber security industry seeking to develop alliances in India. India has diverse regions with many different peoples, traditions, and levels of economic development. Which two regions of India may be most conducive to developing your entrepreneurial alliances? Why?
Please limit the length of responses to two paragraphs.
Answer:
Two places to conduct cyber business in India :
1. Bangalore, Karnataka
Bangalore karnataka is the also called the cyber hub of Asia. Due to the continuous work by the Karnantaka government this place has become the prime destination for cyber industries.
2. Gurugram, Haryana
After the division of hyderabad, the second best place to implement the cyber hub is gurugram due to its high availability of labor force and workplaces.
The two regions of India that may be most conducive to developing your entrepreneurial alliances will be Bengaluru and Delhi.
It should be noted that cyber security simply means the practice of defending computers, mobile devices, severs, networks, data, etc from unauthorized use.
Based on the information given, the two regions of India that may be most conducive to developing your entrepreneurial alliances will be Bengaluru and Delhi. The reason for choosing these countries is because they're the major IT hubs in the country.
Read related link on:
https://brainly.com/question/18994350
Dufner Co. issued 14-year bonds one year ago at a coupon rate of 7.9 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.6 percent, what is the current dollar price assuming a par value of $1,000
Answer:
Bond price= $1,210.4
Explanation:
Giving the following information:
Coupon rate= 0.079/2= 0.0395
YTM= 0.056/2= 0.028
Face value= $1,000
n= 13*2= 26
To calculate the price of the bond, we need to use the following formula:
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond price= 39.5*{[1 - (1.028^-26)]/0.028} + [1,000 / 1.028^26]
Bond price= 722.67 + 487.73
Bond price= $1,210.4
Jessica thinks that she might have made a mistake on her tax return and paid more tax than she needed to. Complete the statements describing
what Jessica can do.
Answer:
Jessica thinks that she might have made a mistake on her tax return and paid more tax than she needed to. Complete the statements describing what Jessica can do.
Jessica can hire
a certified public accountantto check her tax return. If a mistake is found, Jessica can file Form
1040Xto have the IRS correct the mistake and refund any excess taxes she paid.
I guessed and got it right checked on my quiz
Jessica paid more tax than she needed to because she made a mistake on her tax returns. Here's a list of things she can do to correct her mistake:
A) Wait for IRS correction.
What is IRS correction?
IRS, or the Internal Revenue System, might rectify the miscalculation and notify Jessica about the same through a letter. In that case, IRS will intimate Jessica about the changes along with the list of steps she needs to follow to fix the mistake.
B) Fill out the 1040X form.
What is Form 1040X?
In case Jessica doesn't want to wait for IRS to fix the mistake, she can correct it by herself. Jessica can apply to rectify her mistake through form 1040X. It is the only form she can file to correct the previous mistake on her tax returns. The form can be downloaded as a pdf and is easy to fill. It acts as a rectification to form numbers 1040, 1040A, 1040EZ, 1040NR, and 1040NR-EZ. She should not apply for a new 1040. However, Jessica should keep a copy of 1040 with her.
There are three columns in form 1040X. Jessica needs to sum up the original 1040 in the first column. In the second column, Jessica needs to highlight the modification. Jessica will have to write the amount she originally had to pay.
How should Jessica support her claims?
Jessica should explain her situation clearly in part three of the form. She should also attach the relevant documents to support her claim.
How to get a refund?
Jessica must file the 1040X in two to three years to receive a refund on her overpayment.
Read more about how to correct mistakes on tax returns here: https://brainly.com/question/18977403
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PLEASE HELP!
Things of value provided by employers in addition to wages are ______. *
Answer:
Employee Benefits
Explanation:
On August 1, 2021, Fowler Company acquired $500,000 face value 10% bonds of Kasnic Corporation at 104 plus accrued interest. The bonds were dated May 1, 2021, and mature on April 30, 2026, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Fowler make to record the purchase of the bonds on August 1, 2021?
a) Debt Investments: 500,000 | Premium on Bonds: 32,500 | Cash: 532,500
b) Debt Investments: 520,000 | Interest Revenue: 12,500 | Cash: 532,500
c) Debt Investments: 532,500 | Interest Revenue: 12,500 | Cash: 520,000
d) Debt Investments: 532,500 | Cash: 532,500
Answer:
b) Debt Investments: 520,000 | Interest Revenue: 12,500 | Cash: 532,500
Explanation:
The journal entry to record the purchase of the bond is shown below:
Debt investment Dr $500,000 × 1.04) $520,000
Interest revenue Dr ($500,000 × 10% × 3 ÷ 12) $12,500
To Cash $532,500
(being the purchase of the bond is recorded)
Here the debt investment and interest revenue is debited as it increase the assets and decreased the revenue while on the other hand the cash is credited as it decreased the assets
Hence, the correct option is b.
A user access agreement typically is __________ than the list of employee expected behaviors within an organization.
Answer:
Narrower
Explanation:
To make sure that all employees that work in an organization know all their responsibilities, that is ethical and legal. They are required to review and to also accept the terms that has been stated in the user access agreement form.
So for this question, the user access agreement is narrower than the list of employees expected behavior in an organization.
The free enterprise system is a type of economy that?
Answer:
The governemnt doesnt have many restrictions on buisness, Business has a lot of say in government activity.
Explanation:
Answer:
prevents governments from interfering with businesses.
Explanation:
Describe the key elements of IKEA’s globally successful business model. What are the sources of IKEA’s competi-tive advantage?
Answer:
following are the solution to this question:
Explanation:
The key factors for IKEA's growth are as follows:
It made simple to use goods as well as the technique of "do it yourself" allows employees to increase costs lower, prices fair, a good understanding of the population it wants to target, goods clean with a clear aesthetics.
These were also regarded for fair payer money for staff and vendors, as well as the mechanism is open. Its shops also provide accommodation for the whole family.
Bonds contain three important pieces of information. These three pieces are the
d.name of the borrower, the repayment date, and the amount due at repayment.
An entrepreneur founded his company using $200,000 of his own money, issuing himself 200,000 shares of stock. An angel investor bought an additional 100,000 shares for $200,000. The entrepreneur now sells another 400,000 shares of stock to a venture capitalist for $1 million. What is the post-money valuation of the company?
Answer:
the post money valuation of the company is $1,750,000
Explanation:
The computation of the post money valuation is shown below:
Given that
Value of 400,000 shares is $1 million.
So,
The Value of 1 share is
= $1 million ÷ 400,000
= $2.5
And,
Total number of shares is
= 400,000 + 200,000 + 100,000
= 700,000
Now
Total value of shares is
= $2.5 × 700,000
= $1,750,000
hence, the post money valuation of the company is $1,750,000
If you earn 10% per year on your bank account, how long will it take an account with $105 to double to $210? Do not round intermediate celculations. Round your answer to 2 decimal places.) Number of years _________.
Answer:
n= 7.27 years
Explanation:
Giving the following information:
Interest rate= 10%
Future value (FV)= $210
Present value (PV)= $105
To calculate the number of years to double the investment, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(210/105) / ln(1.1)
n= 7.27 years
A competitive market is one in which:
a. few large sellers compete for a majority of the market share.
b. individual sellers and buyers have a lot of influence over market price.
c. government oversees its operation.
d. fully informed price-taking buyers and sellers easily trade a standardized good.
Answer:
d. fully informed price-taking buyers and sellers easily trade a standardized good.
Explanation:
A competitive market is a market where there is a large number of buyers and sellers that sell and purchased homogenous products. The sellers are to be considered as price takers also they cannot influence the price of the market. Plus, the demand for the perfect competition is perfectly elastic
Therefore the correct option is D.
Cash flows from investing activities do not include:___________
a) payment for the purchase of equipment.
b) proceeds from the sale of marketable securities.
c) proceeds from issuing bonds.
d) cash outflows from acquiring land.
Answer:
C. Proceeds from issuing Bonds
Explanation:
Cash flows from investing activities Include the following:
a) payment for the purchase of equipment.
b) proceeds from the sale of marketable securities.
d) cash outflows from acquiring land.
Proceeds from bond issue is cash inflows from financing activities. Cash outflows from acquiring land, Payment for the purchase of equipment and proceeds from the sale of marketable securities are investing activities. Investing activities include sale and purchase of plant assets, intangible assets and investments.
Cosplay Unlimited sells 1,140 outfits per year at an average price of $143. The terms of the sale are 1/15, net 40. The discount is taken by 71 percent of customers. What is the company's accounts receivable balance?
a. $19,651.73
b. $17,865.21
c. $9,937.52
d. $8,632.13
e. $7,326.74
Answer: c. $9,937.52
Explanation:
The Accounts receivable balance can be calculated by;
= Outfits per years * Average Price * (Collection period/365)
Collection period;
71% take the discount which means that they pay in 15 days while the rest pay in 40.
= (71% * 15) + (29% * 40)
= 22.25 days
Accounts Receivable balance = 1,140 * 143 * (22.25/365)
= $9,937.52
Fern,Inc.has fixed costs of $400,000 and a contribution margin ratio of 30%.How much sales revenue must be earned for a profit of $80,000?
A) $144,000
B) $336,000
C) $1,600,000
D) $1,920,000
Answer:
The correct option is C) $1,600,000.
Explanation:
This can be calculated using the following formula:
Sales revenue required = (Fixed cost + Targeted profit) / Contribution margin ratio .......................... (1)
Where;
Fixed costs = $400,000
Contribution margin ratio = 30%
Targeted profit = $80,000
Substituting the values into equation (1) we have:
Sales revenue required = ($400,000 + $80,000) / 30%
Sales revenue required = $480,000 / 30%
Sales revenue required = $1,600,000
Therefore, the correct option is C) $1,600,000.