BRAINLIEST

(Yield to maturity) A bond's market price is $900. It has a $1 comma 0001,000 par value, will mature in 1414 years, and h

jonny [76]

Answer:

The question is not correct in its entirety,find below correct question:

A bond's market price is $900. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 11 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 28 years? What if it matures in 7 years? (Round to two decimal places.)

The bond's yield to maturity if it matures in 14 years is % 12.53%

The bond's yield to maturity if it matures in 28 years is %

The bond's yield to maturity if it matures in 7 years is %

12.53%

12.28%

13.23%

Explanation:

In calculating the bond yield to maturity, the rate formula in excel comes handy:

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

nper is the number of periods coupon would be paid

for 14 years it is 14*2=28(coupon is paid twice a year),56 for 28 years and 14 for 7 years

pmt is periodic coupon payment semi-annually, which 11%*$1000*6/12=$55

pv is the current market price of $900

fv is the redemption price of $1000

YTM for 14 years=rate(28,55,-900,1000)

=6.27% semi-annually

=6.27% *2=12.53% annually

YTM for 28 years=rate(56,55,-900,1000)

=6.14% semi-annually

=6.14% *2=12.28% annually

YTM for 7 years=rate(14,55,-900,1000)

=6.62% semi-annually

=6.62% *2=13.23% annually

5 0

2 years ago

The case of Fujitsu Ltd. v. Federal Express Corp. had to do with whether:

dangina [55]

Answer:

the last option is the answer

Explanation:

3 0

3 years ago

A job order cost system uses a predetermined factory overhead rate based on expected volume and expected fixed costs. At the end

olya-2409 [2.1K]

Answer:

Actual volume: Actual fixed Cost:

Less than normal; Greater than expected

Explanation:

Job order costing may be utilized for numerous different businesses, and each business retains records for one or more inventory accounts. The manufacturing industry keeps a trail of the costs of each inventory account as the product is shifted from raw materials inventory into work in process, through work in process, and into the finished goods inventory

4 0

2 years ago

Read 2 more answers

If a firm has demographic and purchasing information about its customers, the firm can use data mining techniques to create mark

Mumz [18]

Answer:

Build separate marketing programs for different demographic segments.

Explanation:

If a firm has detailed information regarding the demographic and purchasing data of the clients that helps to arrange the product and services in a more concise level. More importantly, they can take that information and design marketing programs accordingly, and those marketing programs can be made to facilitate different marketing segments and target market.

8 0

3 years ago

On July 1, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending

Neko [114]

Answer:

a.

July 1, Year 1

Prepaid Insurance $15000 Dr

Cash $15000 Cr

Dec 31, Year 1

Insurance expense $2500 Dr

Prepaid Insurance $2500 Cr

b.

July 1, Year 1

Cash $15000 Dr

Unearned Service revenue $15000 Cr

Dec 31, Year 1

Unearned service revenue $2500 Dr

Service revenue $2500 Cr

Explanation:

a.

The company will record the cash going out of the business for prepaid insurance as credit and the asset account prepaid insurance as debit to record the prepayment of insurance for 3 years at the amount of $15000.

The insurance paid out is for 3 years. So, the per year insurance expense is,

Insurance expense per year = $15000 / 3 = $5000

The adjusting entry made on 31 december will record the insurance months consumed (6 months) as an expense and debit the insurance expense and credit the prepaid insurance asset account.

The insurance expense for 6 months = 5000 * 6/12 = $2500

b.

For the receiving company, the cash is being received and as the service will be provided later on, the cash received will be debited and the unearned service revenue will be credited.

As six months worth of cover has passed, on 31 December, the company will record service revenue for 6 months that is $2500 and debit the liability recorded under unearned service revenue.

4 0

3 years ago