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konstantin123 [22]
3 years ago
8

Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year

maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 7%. At what price would the bonds sell? Round your answer to the nearest cent. $
Business
1 answer:
g100num [7]3 years ago
6 0

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time    16 (8 years x 2 payment per year)

rate     0.035 (7% rate / 2 payment per year)

50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\

PV $604.7058

<u>The maturity will be calculate as the PV of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  1,000.00

time         8 years

rate  0.07

\frac{1000}{(1 + 0.07)^{8} } = PV  

PV   582.01

<u>The market price will be the sum of both:</u>

PV cuopon $604.7058

PV maturity  $582.0091

Total $1,186.7149

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Answer:

b. prepare and rehearse

Explanation:

In order to be tactful and professional when personally delivering bad news within organizations, you should prepare and rehearse. Before delivering bad news you need to make sure you have gathered all the information from both sides of the story in order to deliver the news tactfully and professionally. Once you have all the information, rehearsing your delivery will allow you to perfect it and implement a more empathetic approach. Taking a partner is also a good choice, as well as waiting for the right moment.

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Many advertising organizations say that applying the term "unfair" to an advertisement is
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<em>Necessary to protect consumers from harmful products</em>

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2 years ago
Searls Corporation, a merchandising company, reported the following results for July: Number of units sold 2,700 units Selling p
melisa1 [442]

Answer:

$534,600

Explanation:

<em>Contribution margin = Sales - Variable Costs</em>

where :

Sales = 2,700 units x $664 = $1,792,800

Variable Costs = Costs of Goods Sold + Variable Selling Costs + Variable Administrative Cots

                        = 2,700 units x $405 + 2,700 units x $48 + 2,700 units x $13

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6 0
3 years ago
The formula for the production budget is budgeted sales in units plus desired ending merchandise inventory less beginning mercha
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Answer:

desired ending finished goods units less beginning finished goods units.

Explanation:

production budget can be regarded as budget that gives the calculation of the number of units of particular products which is needed to be manufactured, this is comprises the sales forecast as well as amount of finished goods inventory that is planned to have on hand.

It should be noted that the formula for the production budget is desired ending finished goods units less beginning finished goods units..

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Ballard Company incurred a total cost of $8,500 to produce 400 units of pulp. Each unit of pulp required six (6) direct labor ho
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Answer:

$4,900

Explanation:

Given that,

Total cost at a production level of 400 units = $8,500

Each unit of pulp requires = 6 direct labor hours

Variable cost = $1.50 per direct labor hour

Total variable cost:

= Cost per direct labor hour × Direct labor hours required for each unit × No. of units produced

= $1.50 × 6 × 400

= $3,600

Total cost is sum total of total fixed cost and total variable cost.

Total cost = Total fixed cost + Total variable cost

$8,500 = Total fixed cost + $3,600

$8,500 - $3,600 = Total fixed cost

$4,900 = Total fixed cost

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3 years ago
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