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Neporo4naja [7]
3 years ago
14

The zero coupon bonds of JK Industries have a market price of $211.16, a face value of $1,000, and a yield to maturity of 7.39 p

ercent. How many years is it until these bonds mature
Business
1 answer:
Nutka1998 [239]3 years ago
4 0

Answer:

It will take about 22 years until the bonds mature.

Explanation:

This can calculated as follows:

BP = FV/(1 + r)^n ..................................... (1)

Where;

BP = Bond price = $211.16

FV = Face value of $1,000

r = Yield to maturity = 7.39%, or 0.0739

n = number of years for the bond to mature = ?

Substituting the values into equation (1) we have:

211.16 = 1,000/(1 + 0.0739)^n

211.16 [(1.0739)^n] = 1,000

(1.0739)^n = 1,000/211.16

(1.0739)^n = 4.73574540632696

Log-linearizing the above, we have:

nln (1.0739) = ln(4.73574540632696)

n = ln(4.73574540632696)/ln (1.0739)

  = 1.55513913902672/0.0712968818820338  

  = 21.8121620185272

n = 22 years approximately

Therefore, it will take about 22 years until the bonds mature.

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On December 31, Year 1, Ott Co. had investments in marketable debt securities as follows: Amotized Cost Market value Mann Co. $1
Ahat [919]

Answer:

$29,000

Explanation:

The Held-to-maturity securities to be carried at amortized cost

The available-for-sale & trading securities to be carried at fair value (FV).

Therefore, the investment portfolio is reported at the following amounts:

Mann Co.   $10,000 (Cost)

Kemo, Inc.  $10,000 (Fair value)

Fenn Corp. $9,000 (Fair value)

Total           $29,000

So, Ott's December 31, Year 1, balance sheet should report total marketable debt securities as $29,000

7 0
3 years ago
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry abou
erik [133]

Answer:

$0.12 billion; a budget surplus

Explanation:

Given that,

Total spending for the last fiscal year = $4.71 billion

Tax collected during the same fiscal year = $4.83 billion

Government transfers = $0

Lilliput's budget balance:

= (Taxes - Government transfers) - Total spending of government

= ($4.83 billion - $0) - $4.71 billion

= $0.12 billion

Therefore, the Lilliput has a budget surplus during the last fiscal year because of the positive budget balance.

5 0
3 years ago
Building Supplies is considering a merger with Tools and More. Building's total operating costs of producing services are $4 mil
Natalka [10]

Answer:

We generally calculate total average cost by dividing total cost / total output units.

In this case, we are not given the output units, but instead we are given the output value, so we should find a percentage from total revenue.

total costs = $4,800,000

total revenue = $20,000,000 + $5,000,000 = $25,000,000

average total cost = ($4,800,000 / $25,000,000) x 100 = 19.2%

This means that for every $100 of revenue, the merged company will spend $19.20.

7 0
3 years ago
Presented below are three economic events. In each column, indicate whether the event increased, decreased, or had no effect on
Alex17521 [72]

Answer:

(a) Purchased supplies on account.

Increase assets and liabilities

(b) Received cash for providing a service.

Increase assets and equity

(c) Expenses paid in cash.

Decrease assets and equity

Explanation:

(a) The company acquire an assets but to do so; it take a liability. In the future it will be forced to pay the credit given today

(b) The company receive an assets(cash) by prvoviding services which is the main activity. The equity represebt both, the owner investment and the earning of the business. In this case this is an earning so it increase equity

(c) The rgannizatioon used an asset to afford their obligation. This is a negative result thus; equity decrease

5 0
3 years ago
Shay is preparing to go into her meeting with her supervisor, Jill, to discuss her annual evaluation. She knows that there have
Rzqust [24]

Shay is preparing to go into her meeting with her supervisor, Jill, to discuss her annual evaluation. She knows that there have been a few times this year where she could have performed better and she does not want to get angry in the meeting. Last night and on the ride in this morning, she rehearsed what she anticipated Jill would tell her and what her response would be. Shay was trying to  resist being defensive - True

<h3><u>Explanation:</u></h3>

The word Resist refers to the act of  withstanding  the action or effect of something. An act that is done with an  intention to protect oneself or defend from the challenge or avoiding criticism is defensive. When we do something wrong or when we are in a situation to avoid criticism by others who may be our co workers we tend to defend our self.

When we are having confidence in  the things that we do then we will try top resist what others says by explaining them the actual thing. In the given scenario, Shay is preparing how to answer the questions that Jill shoots in the meeting because he has the confidence in the work she performed. Thus, Shay is trying to resist Jill than being defensive.

4 0
3 years ago
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