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jeka57 [31]
3 years ago
15

What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 5.20%? The bond has 12 years to matu

rity.
Business
1 answer:
Troyanec [42]3 years ago
7 0

Answer:

$544.265

Explanation:

Given:

FV = $1,000

Yield to maturity = 5.2%

N = 12 years

Required:

Find the value of the zero coupon bond.

Use the formula:

PV = FV * PVIF(I/Y, N)

Thus,

PV = 1000 * PVIF(5.2%, 12)

= 1000 * 0.544265

= $544.265

The value of the zero coupon bond is $544.3

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The capital budgeting process in a company involves evaluation of cash flows, risk analysis, correlation with the portfolio of p
Galina-37 [17]

Answer:

c. Universal Computer Corp.’s purchase of a competitor’s subsidiary.

b. Atlanta Aeronautics Co.’s purchase of a new piece of equipment.

Explanation:

Consider the following definition.

What is capital Budgeting ? Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.

3 0
3 years ago
Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor h
mash [69]

Answer:

variable overhead efficiency variance= $562.5 unfavorable

Explanation:

Giving the following information:

The actual production of 5,500 units

Actual direct labor hours= 11,250

Standard direct labor for 5,500 units:

Standard hours allowed 11,000 hours

First, we need to determine the variable overhead rate:

Variable overhead rate= 22,500/10,000= $2.25 per direct labor hour

Now, using the following formula we can determine the variable overhead efficiency variance:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

variable overhead efficiency variance= (11,000 - 11,250)*2.25

variable overhead efficiency variance= $562.5 unfavorable

3 0
3 years ago
Your friend, Marco, offers to share with you a paper he wrote for his Introduction to Business class last semester. When you tel
Len [333]

Answer:

The correct answer is: <u>Is it balanced?</u>

Explanation:

This question based on ethics would be the most appropriate to assess these situations. Because when you confront your friend that it would not be fair and ethical for him to share an article written by him to be used as if you had written it, he responds to you with behavior that you consider unethical, but in these situations there is no balance comparison, as they are different situations.

Ethical issues seek to solve conflicting problems and dilemmas.

5 0
3 years ago
Suppose that you deposit? $10,000 in an account that pays? 6% interest and you want to know how much will be in your account at
dimaraw [331]

Answer:

B.    =PV(.06,10,0,10000)

Explanation:

In MS Excel the formula of Present value re is as  "=PV( rate, nper, pmt, [fv] )".

PV = Present value

rate = Interest rate= 6% = 0.06

nper = number of periods  = 10

pmt = payment made each period = 0 in this scenario

fv = future value = 10,000

So, according to the formula the correct sequence is =PV(.06,10,0,10000)

which is correctly mentioned in option B.

3 0
3 years ago
Money is a productive asset. Its opportunity cost is:
dsp73

Answer:

The correct answer is A. The time value of money.

Explanation:

In economic theory, the temporary value of money is intended to represent the idea that a dollar of today is worth more than a dollar of the future, even after adjusting for inflation, because a dollar can now generate interest or other returns up to moment in which the dollar of the future is received. This theory is based on the calculation of present or current value.

8 0
3 years ago
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