1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Shalnov [3]
3 years ago
14

What is the value of a zero-coupon bond with a yield to maturity of 9 percent, a par value of $1,000, and 10 years to maturity?

(Assume semi-annual compounding)

Business
1 answer:
Y_Kistochka [10]3 years ago
8 0

Answer:

$414.64

Explanation:

For computing the value of zero-coupon bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Future value = $1,000

Rate of interest = 9% ÷ 2 = 4.5%

NPER = 10 years × 2 = 20 years  

PMT = $0

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $414.64

You might be interested in
Natural risks would be examples of
Lisa [10]
B I think I hope I'm right if not sorry
3 0
2 years ago
Read 2 more answers
A key limitation of balance sheets in financial analysis is that: A) liquidity and solvency ratios require information from othe
tatyana61 [14]

Answer: Option (B) is correct.

Explanation:

The three limitations to balance sheets are as follow:  

1.) Assets are being noted or stored at a historical cost,  

2.) There is a thorough use of the estimates,

3.) There's also omission of several precious non-monetary assets.  

Therefore from the given options, we can state that the key limitation of using a balance sheets under the constraints of financial analysis is that different items in a balance sheet are or may be evaluated differently.

8 0
3 years ago
Company C has a machine that, working alone at its constant rate, processes 100 units of a certain product in 5 hours. If Compan
r-ruslan [8.4K]

Answer:

Therefore the constant rate of new machine should be 30 units per hour.

Explanation:

Given that,

Company C has a machine that, working alone at its constant rate.

In 5 hours it produced 100 units certain product.

In 1 hour it produced (100÷5) units certain product.

                                     =20 units.

So,the constant rate of this machine is 20 units per hours.

Company C buys a new machine.

If two machine are working together,

In 2 hours, they produces 100 units.

In 1 hour, they produces (100÷2) units=50 units.

The constant rate of both machines is 50 units per hours.

Since first machine produces 20 unit per hour.

Then, the new machine produces =(50-20) =30 units per hour.

Therefore the constant rate of new machine should be 30 units per hour.

7 0
3 years ago
Net Zero Products, a wholesaler of sustainable raw materials. Prepared the following aging of receivables analysis.
kkurt [141]

Answer:

Net Zero Products

a) The balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method is $4,300.

b) Adjusting Entry to record bad debt expense:

Debit Bad Debt Expense $1,700

Credit Allowance for Doubtful Accounts $1,700

To record the bad debt expense for the period and bring the allowance to $4,300 credit balance.

Explanation:

a) Data and Calculations:

Aging of receivables analysis:

Total (days)                          0        1 to 30     31 to 60     61 to 90     above 90

Accounts receivable $171,000   $96,000   $34,000     $15,000     $12,000

Percent uncollectible                      1%            4%                 6%            9%

Allowance for doubtful     0          $960        $1,360         $900        $1,080

Total allowance for doubtful = $4,300 (960 + 1,360 + 900 + 1,080)

b) The adjustment in the Allowance for Doubtful Accounts needed for the current period is $1,700 ($4,300 - $2,600).  This amount will be debited to the Bad Debts Expense account and credited to the Allowance for Doubtful Accounts.  It will bring the total for the Allowance for Doubtful Accounts to $4,300 from $2,600.

3 0
3 years ago
If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri
sukhopar [10]

Answer:

no cash was collected during the period

or

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total  Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining  $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either  cash collections during the year are less than the amount of revenue recognized.

or

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts  receivable balance would be less

4 0
3 years ago
Other questions:
  • Local Co. has sales of $ 10.8 million and cost of sales of $ 5.7 million. Its​ selling, general and administrative expenses are
    12·1 answer
  • Emerging adults are in a high-risk category for _____.
    12·1 answer
  • In most​ cases, the company is not simply seeking a sale.​ rather, it wants to engage the customer over the long haul in a​ ____
    15·1 answer
  • What part of a check is the least important
    5·2 answers
  • Waste that comes from the production of consumer goods, mining, agriculture, and petroleum extraction and refining is
    6·1 answer
  • Ten reasons why we need to have laws for business's
    9·1 answer
  • Which of the following is NOT a typical revenue model in the digital world? Freemium Subscriptions Channel marketing Licensing A
    14·1 answer
  • Functions are often described as cause and effect in economics. In an economics function, if the variable is on the right-hand s
    15·1 answer
  • A marketing associate is working on a remarketing strategy for their Search Ads campaign. They want to re-engage high-value cust
    13·1 answer
  • In the long run, the cost of capital for nonequity funding is generally ______ that of equity investment.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!