Answer: $471,324.61
Explanation:
Price of a bond = Present value of coupon payments + Present value of face value at maturity
Coupon payments = 500,000 * 11% * 1/2 years = $27,500
Periodic yield = 12%/ 2 = 6% per semi annual period
Periods = 10 * 2 = 20 semi annual periods
Coupon payment is constant so it is an annuity.
Price of bond = Present value of annuity + Present value of face value at maturity
= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods
= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰
= $471,324.61
Answer:
The operating income would increase by $2.54 for each unit sold
Explanation:
If the blackberry syrup is further processed into the specialty blackberry juice, an extra income of $2.54 ($5.40 - $2.90 = $2.54) would be made on each unit sold
Answer:
Pension funds are contribution set aside by employers paid into a Pension Fund Administration (PFA) company for the purpose of retirement.
Explanation:
Pension funds are monies credited into the Individual Retirement Savings (IRS) Account by the employer, with a focus on providing financial comfort to the employees at retirement.
Answer: A fund should review its use of derivatives when it updates its registration statement annually - particularly disclosures in its shareholder??
Explanation:
Answer:
Option (B) is correct.
Explanation:
Given that,
Fixed costs for manufacturing the product = $40,000
Current sales price of a product = $25 per unit
Variable cost = $17 per unit
Break even points in units:
= Fixed cost ÷ (selling price per unit - Variable cost per unit)
= $40,000 ÷ ($25 per unit - $17 per unit)
= $40,000 ÷ $8 per unit
= 5,000 units
