Answer:
Bond Price= 106.77
Explanation:
Giving the following information:
Face value= 100
Coupon= 100*0.05= 5
Yield To Maturity= 0.035
Years to maturity= 5 years
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 5*{[1 - (1.035^-5)] / 0.035} + [100/(1.035^5)]
Bond Price= 22.57 + 84.2
Bond Price= 106.77
All of them. Trust me :)) I read that whole chapter in that first section
Answer:
B. $10,000 Underapplied
Explanation:
Hourly rate = $250,000/100,000 = $2.5 per hour
Excess hours = 4000
Excess over head = 4000 * 2.5 = $10,000
There was a $10,000 underapplied overhead for that period
Answer:
It should cost $605,183.13 today.
Explanation:
Giving the following information:
Cash flow= $50,000
Number of years= 30
Interest rate= 7.25%
To calculate the present value, first, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {50,000*[(1.0725^30)-1]} / 0.0725
FV= $4,940,897.47
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 4,940,897.47/ (1.0725^20)
PV= $605,183.13
