Answer:
Yield To Maturity is 7.82% per year and 3.9% per 6 months
Explanation:
Assuming Coupon value is $100
C = Coupon Payment = 100 x 8.1%/ = $8.1
F = Face Value = $100
P = Price = $102
n = number of years = 10
Yield To Maturity = ( C + ( F - P )/n ) / ( ( F + P ) / 2 )
Yield To Maturity = ( $8.1 + ( $100 - $102 )/10 ) / ( ( $100 + 102 ) / 2 )
Yield To Maturity = $7.9 / $101
Yield To Maturity = 7.82%
Answer:
40 customers
Explanation:
Expected Demand Rate*current service rate/current utilization=capacity requirement/required utilization
.75*(50/90)=x/.95
x=39.58
x=40 customers
Answer:
This process is known as Benchmarking
Explanation:
Benchmarking is the process of comparing business process and performance to the best practices from the other companies. The dimensions measured and compared are time, quality and cost.
This allows the organizations to improve the projects or plans or adapt the specific best practices with the aim of increasing the performance.
Answer:
The second year's interest expense would have been less.
Explanation:
Given that
Interest rate = 6%
Borrowing cash for 5 year note = $500,000
So, the interest expense
= Borrowing cash for 5-year note × Interest rate
= $500,000 × 6%
= $30,000
Now for an installment note, we have to consider both interest and the principal payment
So, the first option is false, as the annual cash payment is more instead of loss
The second option is also false as it the first year interest payment would remain the same instead of being higher
The third option is correct as the principal amount plus the interest expense would get reduced by their actual amount because of the first payment with regard to principal and interest
And, the fourth option is wrong as the effective interest rate would be less instead of being higher