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scoray [572]
2 years ago
8

Oil Wells offers 6.5 percent coupon bonds with semiannual payments and a yield to maturity of 6.94 percent. The bonds mature in

seven years. What is the market price per bond if the face value is $1,000
Business
1 answer:
kozerog [31]2 years ago
3 0

Answer:

$ 975.93  

Explanation:

The market value of the bond can be computed using the pv formula in excel as follows:

=-pv(rate,nper,pmt,fv)

rate is the semiannual yield to maturity i.e 6.94%/2=3.47%

nper is the number of semiannual coupon payments the bondholders would receive ,which is 7*2=14

pmt is the semiannual coupon payment=$1000*6.5%*6/12=$32.5

fv is the face value at $1000

=-pv(3.47%,14,32.5,1000)

=$ 975.93  

The price of the bond is $ 975.93   which means that it would be issued at a discount of $ 24.07   when compared to face value of $1000

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The Nautical Corporation manufactures custom-made wood wall units. The following data pertains to Job X4A: Direct materials plac
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Answer:

Total Cost of Job X4A:                                             $

Direct material cost  ($9,000 x 500 units)              4,500,000                              

Direct labour cost (300 hrs x $15 x 500 units )       2,250,000

Overhead applied (100 hrs x $22.50 x 500 units)  1,125,000

Total cost                                                                    7,875,000

Explanation:

The total cost of Job X4A is the aggregate of direct material cost, direct labour cost and overhead applied. Overhead is absorbed on the basis of machine hours. Thus, we will multiply the overhead rate by machine hours and number of units produced.          

7 0
3 years ago
Wyzard Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbishe
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Answer:

Revenue variance    $1800<u>  </u>Favorable

Explanation:

<em>Revenue variance is the difference between the actual revenue and the standard revenue from the actual units sold. It is can be determined as follows:</em>

Revenue variance                                                            

                                                                                                $

Revenue from 32 units  (32× 3,800)                                121,600

Actual revenue                                                                   <u>123,400</u>

Revenue variance                                                            <u>   1800  </u>Favorable

Revenue variance    $1800<u>  </u>Favorable

8 0
3 years ago
Brittney's employer matches 25% of her 401(k) contributions up to $1500.
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Answer:

APEX - 1000

Explanation:

6 0
2 years ago
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Assuming the use of a 365-day year, Barry Bees, Inc.'s Cost of Goods Sold equals $10,000. A. Its Beginning Inventory was $800, a
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Answer:

The answer is 36.5 days

Explanation:

Average days to sell inventory is the number of days it takes a firm or business to sell its inventories in a year.

(Average inventory/cost of goods sold) x 365 days

Average inventory = ($800 + $1,200) ÷ 2

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Therefore, Barry Bee's average days to sell inventory is ($1,000 ÷ $10,000) x 365days

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