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3 years ago

5

Which $1,000 bond has the higher yield to maturity, a twenty-years bond selling for $800 with a current yield of 15% or a one-ye

ar bond selling for $800 with a current yield of 5%?

1 answer:

lesantik [10]3 years ago

3 0

Answer:

30%

Explanation:

The computation is shown below:

Here we considered a long term bond that time period should be 15 years or more

Now as we know that

Current yield is

= Current payment ÷ Pb

5% = Current payment ÷ $800

The Current payment is $40

Now the yield to maturity is

-$800 = $50 ÷ (1 + i) + $1,000 ÷ (1 + i) + $1,040 ÷ (1 + i)

So, i = 30%

The same is to be chosen

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You want to start an organic garlic farm. The farm costs $230,000, to be paid in full immediately. Year 1 cash inflow will be $2

Nostrana [21]

Answer:

13.8%

Explanation:

IRR is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 = $-230,000

Cash flow in year 1 = $25,000

Cash flow in year 2 = $25,000 x 1.05 = $26,250

Cash flow in year 3 = $26,250 × 1.05 = $27,562.50

Cash flow in year 4 = $27,562.50 × 1.05 = $28,940.63

Cash flow in year 5 = $28,940.63 × 1.05 = $30,387.66 + $260,000 = $290,387.66

Irr = 13.84%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

5 0

3 years ago

Brennan Manufacturing monitors the number of customer returns for each product model to attempt to track when the organization i

STALIN [3.7K]

Brennan Manufacturing monitors the number of customer returns for each product model to attempt to track when the organization is producing a large number of defective products. This is an example of: Feedback control.

4 0

3 years ago

Hertz Car Rental has a customer loyalty program called Gold Plus Rewards that rewards members with one point per dollar spent on

Lerok [7]

Answer:

Relationship

Explanation:

Relationship marketing refers to the marketing in which the company could maintain the loyalty with the customer and predict that the long term relationship could be maintained.

It could be in terms of price, discounts, redeem points, quality, services, after-sales services, etc

Since in the question it is mentioned that the 500 points could be earned so this represents a relationship marketing

7 0

3 years ago

The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value

faust18 [17]

Answer:

The correct answer is "43,000".

Explanation:

The given values are:

Carrying amount,

= $4060000

Face value,

= $3900000

Now,

For June 30, 2021, the Interest expense will be:

= $4060000\times 10 \ percent\times \frac{1}{2}$

= $203,000$

For June 30, 2021, the cash interest will be:

= $3900000\times 8 \ percent\times \frac{1}{2}$

= $156,000$

Now,

On June 30, 2021, the premium's amortization will be:

= Interest expense - Cash interest

= $203,000-156,000$

= $47,000$

On retirement, the cash paid will be:

= $3900000\times 104 \ percent$

= $4,056,000$

On June 30, 2021, the less carrying amount will be:

= Carrying amount - amortization

= $4060000-47000$

= $4,013,000$

Then,

The loss on retirement as well as ignoring taxes will be:

= Cash paid - less carrying amount

= $4,056,000-4,013,000$

= $43,000$

6 0

2 years ago

Malik Boykin is paid $8.20 per hour. and time and a half for any work over 40 hours

Viefleur [7K]

<u>Pay of Malik Boykin:</u>

Step 1:

Adding the total hours for each week:

Week of 3/10 = 5.5+6+9+12+7 = 39.5

Week of 3/17 = 8+8.5+9+13+4.5+4 = 47

Step 2:

Any sum of 40 hours or less gets multiplied by the hourly salary:

Week of 3/10: $39.5\times\$8.20 = \$323.90$ - That's the pay for that week

Week of 3/17: $40\times\$8.20 = \$328$

Step 3:

For hours worked over 40 the salary is 1.5 times the normal salary:

$\Rightarrow\$8.20\times1.5 = \$12.30$

Now multiply the hours over 40 for that week by the time and a half:

$\Rightarrow\$12.30\times7 = \$86.10$

And adding it to the $\$328$ we get,

$\$328+\$86.10=\$414.10$

Therefore, Week of 3/10: $\bold{\$323.90}$ and Week of 3/17: $\bold{\$414.10}$

6 0

3 years ago