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Troyanec [42]
3 years ago
9

g: have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If you require a 7 percent ret

urn, what price would you be willing to pay for a Vanguard bond
Business
1 answer:
muminat3 years ago
6 0

Answer:

The price for a vanguard  bond will be $1204.48

Explanation:

We are given the face value of the bond so now we will look for the present value at which the vangaurd bond can be sold for so firstly we are given the bonds face value which is $1000 and an annual coupon rate of 8% plus the mature period of 20 years so we will use this information to find the bonds future value at a coupon rate which is the face value in 20 years time using the formula Fv = Pv (1+i)^n

where Fv is the future face value of the bond

Pv is the present value of the bond which is $1000

i is the coupon rate of 8%

n is the period the bond will mature in

therefore now we substitute the above mentioned values:

Fv = 1000(1+8%)^20

Fv = $4660.957144 this is the future face value of the bond now we will find the present value of the bond using the interest rate of 7% considering the return i want to find the value of the vanguard bond now using the same above formula but finding the present value at 7% per annum:

Pv= Fv/ (1+i)^n

where Fv is the future value above for the bond

Pv is the present value price of the bond which we are looking for

i is the interest rate i require which is 7%

n is the period of 20 years the bond took to mature.

therefore we substitute to the above mentioned formula:

Pv = $4660.957144/(1+7%)^20 then compute on a calculator

Pv = $1204.48 which will be the the price i'm willing to pay for the vanguard bond.

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Not Positive but A, D, C

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An llc offers personal liability protection while also keeping the advantage of __________.
olchik [2.2K]
The answer that would best complete the given statement above would be option D. An llc offers personal liability protection while also keeping the advantage of PASS-THROUGH TAXATION USER. This is a special structure for business which is used to reduce the effects of double <span>taxation. Hope this answer helps.</span>
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3 years ago
Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each div
PIT_PIT [208]

Answer:

OPTIMUS COMPANY

Home Division Responsibility Report For the Year Ended December 31, 2020

The report is attached in form of a variance report with comments.  Where the variance is not indicated, it means that it was neither favorable nor unfavorable.

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A responsibility report is usually presented by a division that is an investment center.  An investment center has responsibility for return on investments.

The investment center takes charge of the cost, revenue, profit, and investments of the division.  It is expected to produce returns on its investment that will be favorable to the shareholders of the company.  It is directly responsible for profitability of the division vis-a-vis the capital investments made in the center.  It is unlike other divisions like cost center, revenue center, and profit center, which narrowly report their performances in accordance with their responsibilities.

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Download xlsx
3 0
3 years ago
The following transactions were completed by Daws Company during the current fiscal year ended December 31:
boyakko [2]

Answer:

Explanation:

The T account is presented below:

                          Allowance for Doubtful Debts  

Jan 29                  $5,850                      Jan 1 Beginning balance $54,200

Aug 9                   $11,850                      April 18                 $4,000

Dec 31                  $52,160                     Nov 7                    $7,000

Dec 31   Unadjusted

              balance    $4,660                

                                                          Dec 31 Adjusting entry   $64,660

                                                          Dec 31 Adjusted balance $60,000

4 0
3 years ago
Use the cost information below for Sundar Company to determine the total manufacturing costs added during the current year:
astra-53 [7]

Answer:

cost of goods manufactured= $98,000

Explanation:

Giving the following information:

Direct materials used $19,000

Direct labor used 24,500

Factory overhead 55,100

Beginning work in process inventory 10,700

Ending work in process inventory 11,300

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

<u></u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured=  10,700 + 19,000 + 24,500 + 55,100 -11,300

cost of goods manufactured= $98,000

7 0
2 years ago
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