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balandron [24]
2 years ago
14

a 12oupon bond, semiannual payments, is callable in 3 years. the call price is $1,120; if the bond is selling today for $1,110,

what is the yield to call?
Business
1 answer:
charle [14.2K]2 years ago
7 0

Based on the coupon rate, the call price and the selling price, the yield to call is 11.06%.

<h3>How is the yield to call found?</h3>

The formula to find it is:

= (Coupon + (Call price - Current price) / Number of periods ) / ( (Call price + Current price) / 2 ) x 2

Solving gives:

=( (12%/2  x 1,000) + (1,120 - 1,110) / 6 semi annual periods ) ) / ( (1,120 + 1,110) / 2) x 2

= (61.667 / 1,115) x 2

= 11.06%

Find out more on the yield to call at brainly.com/question/14801120.

#SPJ12

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Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.50 p
vodomira [7]

Answer:

The right solution is "$78.55".

Explanation:

The given values are:

Material cost,

= $5 per pound

Average freight costs,

= $0.25 per pound

Downtime average,

= 0.40 hours per unit

According to the question,

The direct material cost per unit will be:

=  ((4.5+0.5)\times 5\times 0.98)+(0.25\times (4.5+0.5))

=  (5\times 5\times 0.98)+(0.25\times 5)

=  24.5+1.25

=  25.75 ($)

The direct labor will be:

=  ((2.0+0.4)\times 12)+(3\times (2.0+0.4))

=  28.8+7.2

=  36 ($)

Manufacturing overhead will be:

=  (2.0+0.4)\times 7

=  2.4\times 7

=  16.8 ($)

hence,

The standard cost per unit will be:

=  Direct \ material+Direct \ labor+Manufacturing \ overhead

=  25.75+36+16.8

=  78.55 ($)

7 0
3 years ago
Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.
olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset        Cost        Adjusted Basis

--------------------------------------------------

Skidder   230,000      40,000

Driller       120,000      60,000  

Platform  620,000        0

-------------------------------------------------

Total         970,000      100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset =  value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

  • Skidder = 300.000 * 40.000/100.000 = 120.000

  • Driller = 300.000*60.000/100.000 = 180.000

  • Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

                        = 300.000 - (40.000 + 60.000 + 0)

                        = 200.000

6 0
3 years ago
Flint Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capac
ddd [48]

Answer:

Please see the answers below:

Explanation:

1.

Debit: Equipment         $912,000

Credit: Notes Payable                 $912,000

To record purchase of equipment at zero interest bearing note Central Michigan.

2.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 1st year Installment and Interest.

3.

Debit: Notes Payable        $182,400

Debit: Interest Payable      $20,064

Credit: Cash                                     $202,464

To record Cash Payment of 2nd year Installment and Interest.

4.

Debit: Depreciation Expense          $91,200

Credit: Accumulated Depreciation               $91,200

To record Depreciation Expense on Equipment over the life of 10 years with no salvage value. (Straight Line Depreciation is employed).

6 0
3 years ago
Conducting a(n) __________ of the disaster recovery documentation for accuracy should be a standard practice for the organizatio
erica [24]

Answer:

Revision/Review

Explanation:

DRP is a key procedure in every company so the documentation must be reviewed usually and updated accordignly.

4 0
3 years ago
Which of the following statements is/are FALSE, all else the same?
xz_007 [3.2K]

Answer:

I. Present values increase as the discount rate increases.

and

III. Present values are smaller than future values when both r and t are positive.

5 0
3 years ago
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