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pishuonlain [190]
2 years ago
12

On January 1, 2019, Broker Corp. issued $3,700,000 par value 10%, 12-year bonds which pay interest each December 31. If the mark

et rate of interest was 12%, what was the issue price of the bonds? (The present value factor for $1 in 12 periods at 10% is 0.3186 and at 12% is 0.2567. The present value of an annuity of $1 factor for 12 periods at 10% is 6.8137 and at 12% is 6.1944.)
Business
1 answer:
victus00 [196]2 years ago
8 0

Answer:

Price = $3,241,718

Explanation:

To calculate issue price of the bonds we first calculate NPV of the bonds after 12 years and Interest payments of the bonds for 12 years.

NPV can be calculated by : Bond value * NPV factor after 12 years

so, Bond Value after 12 years = $3700 000 * 0.2567  = $949,790

We take the market interest rate for this.

Now we calculate Yearly interest payment = 3700000 * 10% = $370,000

we discount it back using annuity for 12 years so, 370000 * 6.1944 = $2,291,000. This is the total interest payments for 12 years in NPV terms.

To calculate issue price simply add Interest payments and Bond NPV value so,

Price  =  2291000 + 949790 = $3,241,718

Hope that helps.

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Alchen [17]

Answer:

Ans. the rate of return of this invesment is 3.5278% annual.

Explanation:

Hi, what we need to do here is to find the future value of all six payments, beginning when the child turns 12, which will end when he turns 17. One year later (when the child turns 18) he will receive $25,000 per year, for the next 4 years. This is the equation that we need to use (and solve for "r").

\frac{A_{1}((1+r)^{6}-1)  }{r} =\frac{A_{2}((1+r)^{4}-1)  }{r(1+r)^{4} }

Where:

A1=$14,000

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So, everything should look like this

\frac{14,000((1+r)^{6}-1)  }{r} =\frac{25,000((1+r)^{4}-1)  }{r(1+r)^{4} }

As you can see, this would take forever to solve, so what we have to do is to use MS Excel, we have to use the "Goal Seek" function. Please check the MS Excel spread sheet attached to this answer.

Please use this function with the following parameters.

Set Cell: G7

To Value: 0

By changing cell: G2

Ans. 3.5278%

Best of luck.

Download xlsx
5 0
3 years ago
Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $4 per liter. It costs $1
Sergeu [11.5K]

Answer:

a) Product G should be produced and sold

b) Net financial advantage      $80

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .  </em>

                                                                                            $

Revenue after split-off point  

($9×  40 litres)                                                                 360

Revenue at the slit of point  

($4 ×   40)                                                                        <u> (160)</u>

Additional income from further processing                  200

Further processing cost ($3× 40)                                  <u>(120)</u>

Incremental income from further processing                <u> 80</u>

Incremental income from further processing = $80

a) The product F should be processed further and sold as product G. Doing so would increase the net income by $80.

b) Net advantage                                               $80

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Answer:

The answer is true.

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Answer:

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Emotion regulation refers to an ability to delay a natural response in order to show an adjusted response that is intended to create a certain perception.

This can be seen in the example above.

The natural response for the person who sit in the chair and burnt would most likely to be panicked and anxious.  But these performers understand that the audiences will find the performance off putting if they do that, so they use their emotion regulation to create a perception that they're calm and unaffected.

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