When writing solicited application letters? _________

Bond price: Pierre Dupont just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Venic

RUDIKE [14]

Answer:

$929 approx

Explanation:

Assumption: Since face value of the bond is not provided, it has been assumed to be $1000 and solved accordingly.

The present value of a bond i.e bond price is the sum total of the present value of it's future coupon payments in addition to redemption value, both discounted at yield to maturity rate. It is expressed as

$B_{0} = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +.....+\ \frac{C}{(1\ +\ YTM)^{n} } \ +\ \frac{RV}{(1\ + YTM)^{n} }$

where, $B_{0}$ = Present Value of the bond

C = Annual coupon payment

YTM = Yield to maturity rate

n = No of years to maturity.

Here, C = $55 (assumed par value of each bond as $1000)

YTM = 7.25% per annum

n = 5 years

Putting these values in above equation, we get,

$B_{0} = \frac{55}{(1\ +\ .0725)^{1} } \ +\ \frac{55}{(1\ +\ .0725)^{2} } \ +.....+\ \frac{55}{(1\ +\ .0725)^{5} } \ +\ \frac{1000}{(1\ + .0725)^{5} }$

Hence, 4.073 × 55 + 1000 × 0.7047

= $929 approx

Hence, Pierre should pay less than it's face value for such a bond.

3 0

4 years ago

On Kyle Thomason’s $400,000.00 loan, the lender charges a 2-point service charge. In this situation, how much will Kyle have to

bearhunter [10]

Answer:

The answer is C

Explanation:

This is an interest expense.

In accounting, the rule is as follows:

Debit side increases asset and expenses while credit side decreases liability, shareholders' equity and sales or revenue.

Credit side decreases asset and expenses while credit side increases liability, shareholders' equity and sales or revenue.

2 points on $400,000 means the interest charge is 2 percent on $400,000.

So we have 0.02 x $400,000

$8,000.

It will be a debit side because it is an increase in expense.

6 0

3 years ago

Read 2 more answers

Automatic vending, direct mail catalogs, tv home shopping, online retailing, telemarketing and direct selling are examples of:__

bezimeni [28]

The answer is Non-store Retailing.

Automatic vending, direct mail catalogs, tv home shopping, online retailing, telemarketing and direct selling are examples of Non-store Retailing .

What is Non-store Retailing?

Non-store retailing could be a frame of retailing in which a firm offers its items without a physical retail store/space.
The firm offers its items by means of online stages and conveys the item to customer’s doorstep.
Although companies have been doing non-store retailing for the past three or four decades, it rose to noticeable quality during the 21st century.
In any case, non-store retailing isn't an normal line of trade by any implies.
Firms these days are exchanging to non-store retailing since of its “unlimited” benefits.
With the changes in customer’s inclinations, the non-store retailing commerce has developed monstrously amid the 21st century.

To know more about Non-store Retailing visit:

brainly.com/question/27501253?

#SPJ4

6 0

2 years ago

The summary section of a business report appears at the bottom of the report.

IceJOKER [234]

Answer:

true

Explanation:

8 0

3 years ago

Read 2 more answers

Feldpausch Corporation has provided the following data from its activity-based costing system:Activity Cost Pool Total Cost Tota

Alenkinab [10]

Answer:

Product margin= $11.03

Explanation:

First, we need to calculate the activities rates:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Assembly= 1,150,100 / 62,000= $18.55 per machine-hour

Processing orders= 54,554 / 1,860= $29.33 per order

Inspection= 194,310 / 2,550= $76.2 per inspection-hour

Now, we can allocate overhead to Product W26B:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Assembly= 18.55*1,610= $29,865.5

Processing orders= 29.33*65= $1,906.45

Inspection= 76.2*30= 2,286

Total allocated costs= $34,057.95

Unitary allocated overhead= 34,507.95 / 990= $34.86

Finally, the unitary cost and product margin:

Total unitary cost= 34.86 + 52.35 + 17.21= $104.42

Product margin= 115.45 - 104.42

Product margin= $11.03

3 0

3 years ago

When writing solicited application letters? __________.