Answer:
The market price of the bond is $913.41
Explanation:
The coupon payment is annual, meaning it is being paid once a year.
N(Number of years/Number of periods) = 5
I/Y(Yield-To-Maturity) = 5 percent
PMT(coupon payment) = $30 [(3/100) x $1,000]
FV(Future value/Par value) =$1,000
PV(present value or market value) = ?
Now to solve this, lets use a financial calculator (e.g Texas BA II plus)
N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41
Therefore, the market price of the bond is $913.41
Answer:
Explanation:
Base on the scenario been described in the question
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Answer:
$3.7625
Explanation:
Simple interest is calculated as
Interest = P x r x t
Where
p = principal amount.. $350
r= interest rate: 4.3% or 0.043
t= time in years: 3 months or 3/12 =0.25 years
Interest = $350 x 0.043 x 0.25
=$3.7625
four steps four steps 4 steps
The total per cost unit would be 63$ per unit.
Explanation:
Fixed costs are the cost that remains fixed throughout the production cycle whereas the variable cost changes according to the production process.
Hence for the given process while the variable cost would change for producing 3600 units, the fixed cost would remain the same.
The variable cost of producing 3100 units= 111,600$
Variable cost of producing 1 unit= 36$
The cost needed to produce 3600 similar units=129,600$
Fixed cost= 97,200$
Total cost of production= 129,600$+97,200$= 226,800$
Per unit cost of production= Total cost/total no of units produced
=226,800/3600
=63$
