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Lelu [443]
3 years ago
8

Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 4%. The

yield to maturity (YTM) of the bond is 7.70%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $874,669.10 $551,041.53 $743,468.74 $1,049,602.92
Business
1 answer:
ExtremeBDS [4]3 years ago
6 0

Answer:

Explanation:

the present value of the future cash flows is the the value of the bond we calculate the present value as follows

Cash flow  4% = 40000 per year for 4 year p.v using annuity

Cash flow = 1000000 at year four present value using compound formula

Present value at yield rate 7.7%

Cash flow Discount Factor Present Value

1000000 0.743253883           743253.8831

40000         3.334365155           133374.6062

                                            876628.4893

Compound = 1000000/(1+7.7%)^4

Annuity       = 40000*  (1-(1+7.7%)^-4) / 7.7%

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The following items are reported on a company's balance sheet: Cash $160,000 Marketable securities 75,000 Accounts receivable (n
marusya05 [52]

Answer and Explanation:

a. The current ratio is

We know that

Current ratio = Current Assets ÷ Current Liabilities

= $440,000 ÷ $200,000

= 2.2

Cash $160,000

Marketable Securities $75,000

Account receivable $65,000

Inventory $140,000

Current Assets $440,000

Account Payable $200,000

current liabilities $200,000

b

Quick ratio =( Current assets - inventory ) ÷ Current Liabilities

= ($440,000 - $140,000 ) ÷ $200,000

= 1.5

7 0
2 years ago
Give an example of how businesses use demographic information ECONOMICS
trapecia [35]

Businesses often segment the market based on key demographics such as age, gender, income level or marital status, but they also use more precisely defined categories to target specific groups.

3 0
3 years ago
Use the following information:
seraphim [82]

Answer:

Windswept, Inc.

The total dividends paid for 2017 is:

= $556.

Explanation:

a) Data and Calculations:

Windswept, Inc.

Income Statement for the year ended December 31, 2017:

Net Sales                                           $9,740

Cost of goods sold                              7,910

Depreciation                                          480

Earnings before interest and taxes $1,350

Interest paid                                            110

Taxable income                                $1,240

Taxes                                                     434

Net income                                         $806

Windswept, Inc.

2016 and 2017  Balance Sheets ($ in millions)

                               2016        2017                                     2016       2017

Cash                      $260       $290  Accounts payable    $1,490   $1,460

Accounts rec.        1,060         960  Long-term debt           1,130     1,330

Inventory               1,900       1,740  Common stock          3,400    3,340

Total                   $3,220   $2,990  Retained earnings        670       920

Net fixed assets   3,470     4,060

Total assets      $6,690    $7,050  Total liab. & equity  $6,690  $7,050

The total dividends paid for 2017:

Retained earnings, Dec. 31, 2016        $670

Net income for the year, 2017               806

Less Retained earnings, Dec. 31, 2017 920

Dividends paid                                     $556

6 0
3 years ago
Small business owners usually invest little money into new marketing strategies because
aleksandrvk [35]

The answer is:  many small business owners invest money into other areas of the business.

Small business usually still struggle in paying all the necessary expense for daily operation. So they cannot afford the marketing strategy that require a lot of capital (such as  magazine, billboards, television, etc.).  Business start to put more into marketing strategies when it inteded to be a player in a large market.

6 0
2 years ago
Read 2 more answers
Betty's lead needs to get a report of all of the purchases made only by his employees, usingtheir employee discount, in a given
strojnjashka [21]

Answer:

Exception reports

Explanation:

An exception report is a document that shows where actual performance deviated significantly from what was expected, usually in a negative direction. It shows what is abnormal. The exception report then focuses the attention of the management on those areas that would be needing immediate intervention.

8 0
2 years ago
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