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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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Sue purchased a stock for 45 a share, held it for one year received a 2.34 divided and sold the stock for 46.45. what nominal ra
Alexxandr [17]

Answer:

8.4

Explanation:

nominal return - price return + dividend yield

price return = 46.45 /45 - 1 = 3.2%

dividend yield = 2.34 / 45 = 5.2%

7 0
2 years ago
What advice would you give someone who is having a difficult time getting along with a new boss?
vichka [17]
Give it time, be professional you are there for your job nothing else. Work is work. Home is home. It's just your boss have no feelings of bias.
7 0
3 years ago
The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operat
Thepotemich [5.8K]

Answer:

-$24,900

Explanation:

Solution

Given:

The annual payment is defined as:

A = F [i /(1 + i)^n -1

Where,

F = The sum of amount accumulated

i = The interest rate (annual)

n = the number of years

The standard notation equation becomes this

=A = F (A/F, i, n)

Now,

The annual payment  is A = P [ i(1 + i)^n / (1 + i)^n -1

where

P = The present value,

i = The interest rate (annual)

n = the number of year

The standard notation equation becomes this

=A = P (A/P, i, n)

We recall that,

The first cost P is $84,000.

Now,

A = $13,000, S = $9,000,  n = 10 years, and i = 8 %

Thus,

AW =- 84000 ( A/ P 8% 10 ) - 13000 + 9000 (A/F, 8%, 10)

=-84000 (0.149) - 13000 + 9000 (0.069)

= -$24,900

8 0
3 years ago
Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company
Vilka [71]

The Schedule of cost of goods manufactured for the year of Visic corporation is shown below.

                                    Visic Corporation

                   Schedule of Cost of Goods Manufactured

Particulars                                                             Amount (in $)

Direct materials:

Raw materials inventory, beginning ..................... 20,000

Add: Purchases of raw materials..........................480,000

Raw materials available for use ...........................500,000

Deduct: Raw materials inventory, ending ..............30,000

Raw materials used in production........................ 470,000

Direct labor..............................................................90,000

Manufacturing overhead ........................................300,000

Total manufacturing costs.......................................860,000

Add: Work in process inventory, beginning..............50,000

                                                                               910,000

Deduct: Work in process inventory, ending..............40,000

Cost of goods manufactured ..................................870,000

Hence, the schedule of cost of goods manufactured will be as shown above.

Learn more about cost of goods manufactured:

brainly.com/question/14610175

#SPJ4

5 0
1 year ago
Alex, brad, and carl are partners. the profit and rule sharing rule between them is 4:3:3 in the alphabetical order. the partner
goblinko [34]

If i understand your question properly, you want to determine how much each partner wiil have based on the sharing ratio.

Answer:

Alex- $40,000

Brad- $30,000

Carl- $30,000

Explanation:

For a net loss of $100,000 shared between partners in the ratio 4:3:3, the value of each partner's ratio can be calculated as seen below.

Step 1: Add the ratios

i.e; 4 + 3 + 3 = 10

Step 2: Calculate the value of each ratio in $100,000 using te formula

(ratio value ÷ total ratio) × $100,000

For Alex, we have

(4 ÷ 10) × $100,000

= 0.4 × $100,000

= $40,000

For Brad, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

For Carl, we have

(3 ÷ 10) × $100,000

= 0.3 × $100,000

= $30,000

N.B: To confirm if the value of each ratio is correct, you can add up the values to see if it makes $100,000. If it doesn't, then the calculatio is wrong.

Adding the value of the ratios, we have $40,000 + $30,000 + $30,000 = $100,000.

i hope this helps

6 0
3 years ago
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