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
omeli [17]
3 years ago
9

You buy a 6% coupon $1,000 par T-bond 59 days after the last coupon payment. Settlement occurs in two days. You become the owner

61 days after the last coupon payment (59+2), and there are 121 days remaining until the next coupon payment. The bonds clean price quote is 120.59375. What is the full or dirty price (sometimes called the invoice price)
Business
1 answer:
AfilCa [17]3 years ago
4 0

Answer:

dirty price: 1,225.39

Explanation:

When we purchase the bond, we are paying the bond and the accrued interest

<em>bond price:</em> 1,000 x 120.59375/100 = 1,205.9375‬ = 1,205.94

accrued interest at purchase:

face value x bond coupon rate x time

1,000 par value x 6% x 59/(59+2+121) =

1,000 x 0.06 x 59/182 = <em>19,45</em>

Total amount for the bonds: 1,205.94 + 19.45 = 1,225.39

You might be interested in
Put the phases of the business cycle in the correct order in which they follow a recession.first phase depression recovery boom
Mama L [17]

Answer:

Depression, Recovery, Boom and Recession

Explanation:

A business cycle shows the increase and decrease in Gross Domestic Product (GDP) of the natural growth rate of a country's economy. This involves, employment, wages, productions, investments, prices and credits. The stages of business cycle include,  expansion, peak, recession, trough and recovery.

Expansion shows the boom in economy growth rate. A positive increase in employment, productions,  incomes, wages, demand, supply and profits happens at this stage.

Depression shows the decline in a country's economic growth. It results in high rate of unemployment.

Peak is the stage where a country's economy rises. It involves increase in the economy's growth rate.

Recession is the stage where there is rapid and steady decline in the demands for good and services.  

Trough shows how an economy's growth rate decreases.  At this stage, banks do not lend out money.

Recovery involves change from negative to positive economic growth rate. The economy continues to improve until it stabilizes.

6 0
3 years ago
The owner of a soccer team and local stadium has commissioned a study that showed the demand by fans for stadium seats (per play
AVprozaik [17]
The most probable answer here should be the teams playing. Each of the fans will have to support their favorite team, making the stadium be in more demanding situation if the fans' favorite teams are on play. The number of seats will most likely sell out during this period.
4 0
2 years ago
Orange Corporation has budgeted sales of 26 comma 000 ​units, targeted ending finished goods inventory of 8 comma 000 ​units, an
Orlov [11]

Answer:

C. 30 comma 000 units

Explanation:

Inventory to be produced = Sales +ending inventory - Beginning inventory

= 26,000 + 8,000 -4,000

=30,000 Units (Answer is C. 30 comma 000 units ).

4 0
3 years ago
The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for t
Pachacha [2.7K]

Answer:

Adjusted accounting profit - $63,200

Cash inflow / Outflow - $63,200

Depreciation Tax shield - $63,200

Explanation:

Revenue - $188,000

Variable cost ($57,000)

Contribution                                             $131,000

Rental cost  ($37,000)

Depreciation (17,000)

                                                                  ($54,000)

PBIT                                                              77,000        

Income Tax (40%)                                        (30,800)

Net Income                                                   46,200

A) Adjusted Accounting profit

Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200

B)Cash Inflow/Outflow

Revenue                                        $188,000

Variable cost                                   (57,000)

Rental cost                                       (37000)

Income Tax                                      (30,800)

                                                         $63,200

C Depreciation Tax Shield

Tax shield =40%*17,000= $6800

Cash income from operation (EBITDA*(1-tax rate) = 56,400

Add back $6,800 =                                                           6,800

                                                                                           $63,200

                                   

6 0
3 years ago
Jeremy works as a member of a sales team. He never gets involved in conflicts at work. He seems to have the ability to deal with
Mashcka [7]
I believe it would be integrity.
7 0
3 years ago
Other questions:
  • Indicate the accounting concepts, principles, or constraints that underlie each of the following independent situations: account
    15·1 answer
  • When the state of montana runs an advertising campaign inviting the public to visit "big sky country," it's an example of ______
    13·1 answer
  • Which of the following makes decisions about interest rates and the growth of the money supply? A. Federal Advisory Council B. F
    9·1 answer
  • The largest amount of money the government lays out is for the transfer program, _____. And its largest expenditure is for _____
    6·2 answers
  • There are a number of specific steps in the appraisal process. What is the final step?
    6·1 answer
  • Location Score
    5·1 answer
  • Would a firm with low degree of operating leverage need to sell more units of products to reach break-even point or less? Why?
    5·1 answer
  • Your co-worker, the operations manager of Blue Ocean Seafood Restaurants, has pointed out a slight decline in diners ordering an
    8·1 answer
  • Sales is $90 per unit; direct material is $30 per unit; direct labor is $12 per unit; overhead is $5 per unit and $2,100 per mon
    12·1 answer
  • 1988
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!