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umka2103 [35]
3 years ago
12

Ford Motor Company bonds have 20 years remaining to maturity. Interest is paid annually, they have a $1000 par value, the coupon

interest rate is 8%, and the yield to maturity is 6.125%. What is the bond's market price?

Business
1 answer:
olga nikolaevna [1]3 years ago
7 0

Answer:

Bond Price = $1212.895577 rounded off to $1212.90

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,

Coupon Payment (C) = 1000 * 0.08 = 80

Total periods (n) = 20

r or YTM = 0.06125

The formula to calculate the price of the bonds today is attached.

Bond Price = 80 * [( 1 - (1+0.06125)^-20) / 0.06125]  +  1000 / (1+0.06125)^20

Bond Price = $1212.895577 rounded off to $1212.90

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Refer to the following selected financial information from Shakley's Incorporated. Compute the company's profit margin for Year
nekit [7.7K]

Answer:

Profit margin = 9.74%

Explanation:

We know,

Profit Margin = (Net income after tax/Net sales) x 100

Profit margin is a profitability ratio that measures the company's overall performance. It also show how company performs financially.

Given,

Year 2,

Net Sales = $484,000

Net income after tax = $47,150

Therefore,

Profit Margin = \frac{47,150}{484,000}

Profit Margin = 9.74%

Hence, company is performing financially well.

4 0
3 years ago
Three sisters are interested in forming a business together. They have three initial concerns: How to maximize their benefits fr
blsea [12.9K]

Answer:

Limited liability company

Explanation:

A limited liability company is one that the owners are not personally liable for the business. Rather the company is a legal entity on its own and can be sued legally as a sepearte entity from its owners.

It combines features of a corporation and a partnership or sole proprietorship.

This will be the best type of business given that the business will not be expected to earn for the first two years. The sisters will not be personally liable for any debt incurred.

Also the business will continue even if only one of the sisters remains.

So an LLC is the best option for them.

3 0
3 years ago
Three accuracy problems with the consumer price index (CPI) are Group of answer choices price confusion, substitution, and quali
vredina [299]

Answer:

Option b (Substitution.....services) is the appropriate choice.

Explanation:

  • The above leads to calculating difficulties as well as the failure throughout the Index to identify better products and services contributing to less precise inflation outcomes.
  • It does not take account of the replacement facilities, which arise when an increase throughout the price of one promising recommendation to a replacement including its good by another, which often increases the costs of one quality.

The other options are not related to the given scenario. So the above is the correct choice.

7 0
3 years ago
Wilton sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Paola Middle School, terms 2/
iogann1982 [59]

Answer:

The $2,700 is the amount which recognized as net accounts receivable on the balance sheet as of November 30

Explanation:

 The computation of net accounts receivable is shown below:

= Selling price of softball equipment - defective merchandise amount  

= $3,000 - $300

= $2,700

The $1,800 is not considered in the computation part because the Wilton company received an order from Douglas high school which is irrelevant for Paola middle school. Neither the discount terms are considered because the company did not receive the amount.

3 0
3 years ago
Listed here are product costs for the production of soccer balls.
VikaD [51]

Answer:

<u>(a) as either fixed or variable</u>

fixed

Coolants for machinery

Annual flat fee paid for factory security

Machinery depreciation (straight-line)

Taxes on factory

variable

Lace to hold leather together

Wages of assembly workers

Leather covers for soccer balls

<u>(b) as either direct or indirect</u>

direct

Lace to hold leather together

Wages of assembly workers

Leather covers for soccer balls

indirect

Coolants for machinery

Annual flat fee paid for factory security

Machinery depreciation (straight-line)

Taxes on factory

Explanation:

Fixed Costs are constant for any production level. Variable Costs vary directly with production.

Direct Costs are easily traced to the product manufactured. Indirect costs are not easily traced and they need to be allocated to Products manufactured.

7 0
3 years ago
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