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LiRa [457]
3 years ago
13

Vulcan, Inc., has 7 percent coupon bonds on the market that have 13 years left to maturity. The bonds make annual payments and h

ave a par value of $1,000. If the YTM on these bonds is 8.4 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business
1 answer:
ololo11 [35]3 years ago
3 0

Answer:

Current bond price  is $891.74

Explanation:

Coupon rate: 7%

Tenor (Nper): 13 years

Par value: $1,000

YTM (discounting rate): 8.4%

Coupon received annually (PMT) = $1,000 * 7% = $70

Current bond price  = present value of coupon received annually + present value of bond

To calculate PV of coupon received, we use excel in formula PV(discounting rate ,Nper,- PMT) = PV(8.4%,13,-70) = $541.30

or calculate manually = 70/(1+8.4%)^13+70/(1+8.4%)^12+…..+70/(1+8.4%)^1 =  $541.30

present value of bond = 1000/(1+8.4%)^13 = $350.44

Current bond price   = $541.30 + $350.44 = $891.74

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san4es73 [151]

Answer:

opening message: "Thank you for all your hard work and dedication with your position. "

Explanation:

employers dont desire a "high- turnover" rate with employees. especially people who do the job well after so many years. they want dependable staff that are knowledgeable in their department. Insults get an employer nowhere. a company spends valuable funds training new employees.

employees that quit after on the job training, costs a company more $ in profit funds then any other department.

6 0
3 years ago
During December, Far West Services makes a $4,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.
Lina20 [59]

Answer

Debit Accounts receivable   $4,200

Credit Revenue account       $3,870.97

Credit State Sales tax payable        $232.26

Credit local Sales tax payable         $96.77

Explanation:

When revenue is earned but cash is yet to be received and sales tax are to be accounted for at 8.5%, the entries required are;

Debit Accounts receivable   108.5%

Credit Revenue account       100%

Credit Sales tax payable         8.5%

Given that the sales tax amount is in addition to the credit sale amount, let the sales revenue be R

6% * R + 2.5% * R + R = $4,200

1.085R = $4200

R = $3870.97

States tax = 6% * $3870.97

=$232.26

Local tax = 2.5% * $3870.97

= $96.77

5 0
3 years ago
The type of research that compares a product or service with a competitor’s is called ?
AlexFokin [52]
<h2>Answer;</h2><h2> <u>Environmental </u><u>Research--</u></h2>

<h2><u>Is </u><u>type </u><u>of </u><u>research </u><u>that </u><u>compares </u><u>a </u><u>product </u><u>or </u><u>service </u><u>with </u><u>a </u><u>competitor's</u></h2>

<h2><em>Hope </em><em>it </em><em>helps </em><em>like </em><em>my </em><em>answer </em></h2><h2 />

4 0
3 years ago
Most companies allocate facility-level activity costs directly to products for decision-making purposes.True or false?
Finger [1]

Answer:

False

Explanation:

Facility-level costs are being the type of activity based cost activities and it simply sustains a facility’s general manufacturing process. We can say some samples about this type of costs:

1) The costs about depreciation or rent of a factory building  

2) The costs about salary of a plant manager

3) The costs about insurance, taxes, etc.  

4) The costs about training

As you see all about this cost mentioned only in manufacturing processes not in decision making.

4 0
3 years ago
Which fact supports the idea that renting is a good
kipiarov [429]

The fact that support the idea that renting is a good is Landlords take care of most maintenance.

<h3>What is renting?</h3>

Renting refers to an agreement where a payment is made for the temporary use of a good, service or property owned by another.

It is obtaining a owner's property, in return for regular payments.

Hence, the fact that support the idea that renting is a good is Landlords take care of most maintenance.

Learn more about renting here : brainly.com/question/13393299

#SPJ1

3 0
2 years ago
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