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2 years ago

Calculate the price of a two-year bond with a face value of $100, a coupon rate of 5%, and a yield-to-maturity of 5%.

Business

1 answer:

aalyn [17]2 years ago

6 0

The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

= 5×1.85941+ 100×0.90703

= 100

Therefore, the price of the bond is $100.

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Interspace Merchandising anticipated selling 29,000 units of a major product and paying sales commissions of $6 per unit. Actual

lukranit [14]

Answer:

Cost variance = 8,700 U

so correct option is C. $8,700 U

Explanation:

given data

selling = 29,000 units

sales commissions = $6 per unit

Actual sales = 31,500 units

sales commissions = $182,700

to find out

cost variance

solution

we know that Material quantity variance is express as

Material quantity variance = sales commissions × (Actual sales - selling )

Material quantity variance = $6 × (31,500 - 29,000)

Material quantity variance = =$15,000 U

and

Material price variance = $182700 - $31500 × $6

Material price variance = $6,300 F

Cost variance = $15,000 U - $6,300 F

Cost variance = 8,700 U

so correct option is C. $8,700 U

4 0

4 years ago

Scenario 4:

Thepotemich [5.8K]

Answer:

Explanation:

Scenario 1:

You want to purchase a new vehicle and you have your heart set on a brand new SUV. You take out a loan to pay for the car, but after six months you begin to fall behind on payments and incur late fees.

1. Does your credit score go up or down?

Your Credit Card score will go down.

2. Why does it go up or down?

It went down because you were late on your payments.

3. If your score goes down, how can you fix it?

Pay your payments on time.

Scenario 2:

You’ve been eager to buy a new cell phone for months, and now you’re ready to make it happen. You use your credit card to purchase the phone and you set up automatic billing to pay the monthly expenses. At the end of each month, you pay the credit card bill in full.

1. Does your credit score go up or down?

It goes up.

2. Why does it go up or down?

You pay your bills on time.

3. If your score goes down, how can you fix it?

It doesn't go down.

Scenario 3:

Your first semester of college, you take out a small loan to help pay for books. Despite being busy, you get a part time job. Although you don’t have to pay your loan back until you graduate, you’ve saved enough by the end of the semester and you will pay off the loan in full.

1. Does your credit score go up or down?

Your score will go up.

2. Why does it go up or down?

You will pay the loan back in full.

3. If your score goes down, how can you fix it?

It doesn't go down.

8 0

3 years ago

Jordan gets confused and uses his credit card to get $40 in cash from an ATM instead of using his debit card. Based on this agre

Fofino [41]

The impact of Jordan making this mistake is an extra Credit charges that will be impose on the Cash withdrawn.

Simply put, a Credit Card are offered to people by banks for purpose of making purchases or cash advances and requires them to pay back the loan amount in the future.

However, a Debit Card is quite different because it is issued by banks to an account-holder or facilitate easy withdrawal from his/her account through the ATM or at any Point of Sales.

Now, Jordan can use his Credit Card as well but he will be required to pay back the amount he withdrew with an extra Credit charges.

Therefore, in conclusion, the impact of Jordan making this mistake is an extra Credit charges that will be impose on the Cash withdrawn.

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3 years ago

Green Corporation has total sales revenues of $400,000. If its total fixed costs are $70,000 and its total variable costs are $1

Georgia [21]

Answer:

Part 1

the contribution margin is $220,000

Part 2

the net change in operating income is $270,000

Part 3

Stanley's Bicycles contribution margin is $7,500

Explanation:

Green Corporation Contribution Margin Statement

Sales revenues $400,000

Less Variable costs ($180,000)

Contribution $220,000

Less Fixed Cost ($70,000)

Net Income $150,000

Frost Company Contribution Margin Statement

Contribution ($49 x 10,000) $490,000

Less Fixed Cost ($70,000)

Net Income $420,000

Change = $420,000 - $150,000 = $270,000

Stanley's Bicycles Contribution Margin Statement

Sales Revenue ($750 x 200) $150,000

Less Variable Costs :

Cost of Sales ( $600 x 200) ($120,000)

Commission ($150,000 x 15%) ($22,500)

Contribution $7,500

Less Fixed Costs

Rent expense ($1,400)

Salaries ($3,000)

Net Income $3,100

8 0

3 years ago

Use the following quotation to answer the question.“If men were angels, no government would be necessary.” —James Madison, Feder

serg [7]

Answer:

2. Government is necessary, because people do not always behave perfectly.

Explanation:

Option 1 is wrong because if the government cannot control people, there is no use of making policy. It contradicts James Madison's quota.

Options 3 and 4 are incorrect because the government is a necessary element.

Option 2 is correct, as the government is an essential element. Without government, people may become clueless and clumsy. To make peace in the nation, the government has to control its people.

6 0

4 years ago