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ira [324]
3 years ago
5

Suppose a​ seven-year, $ 1 comma 000 bond with a 7.8 % coupon rate and semiannual coupons is trading with a yield to maturity of

6.50 %.If the yield to maturity of the bond rises to 7.20 % ​(APR with semiannual​ compounding), what price will the bond trade​ for?
Business
1 answer:
n200080 [17]3 years ago
4 0

Answer:

The price of the bond is  1,072.19  

Explanation:

The price at which the bond trades for can be computed using the pv formula in excel which tries to discount to present value all the cash inflows receivable from the bond into today's present worth.

=-pv(rate,nper,pmt,fv)

rate is the yield to maturity of 6.50% divided by 2 since the bond pays interest semi-annually i.e 3.25%

nper is the number of coupon payments the bond would pay which is 7 years multiplied by 2 i.e 14

pmt is the semi-annual interest of the bond which is $1000*7.8%/2=$39

the fv is the face value of the bond of $1000

=-pv(6.5%/2,14,39,1000)=$1,072.19  

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Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can.
yarga [219]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Production of 12-ounce cans has a standard unit quantity of 4.4 ounces of aluminum per can. During April, 304,000 cans were produced using 1,243,000 ounces of aluminum. The actual cost of aluminum was $0.17 per ounce and the standard price was $0.07 per ounce.

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= ( 0.07 - 0.17)*1,243,000= $124,300 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (1,337,600 - 1,243,000)*0.07= $6,622 favorable

4 0
3 years ago
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jek_recluse [69]

Itulah perbezaan antara tarif dan kuota.

Maaf lah bila tak saya tulis kat sini, sebab tak boleh hantar jawaban.

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3 0
3 years ago
An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what yield must municipals
Yuki888 [10]

Answer:

0.063 or 6.3% (or more)

Explanation:

Given:

Combined Tax Bracket = 30% = 30/100 = 0.30

Yields of corporate Bonds = 9% = 9/100 = 0.09

Yield to Shift Investors to choose municipal bonds = ?

Calculation:

Yield from corporate bond = (After tax yield) x Yield rate of corporate Bonds

                                              = (0.70) x (0.09)

                                              = 0.063 or 6.3%

Working note:

After tax yield = (1 - tax rate )

After tax yield = (1 - 0.30 )

After tax yield = (0.70)

so, they must give 6.3% yield

7 0
3 years ago
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densk [106]
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 Substituting the values we have:
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 Taxable income = 21600 $
 Answer: 
 her taxable income is 21600 $
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Answer:

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