Ask question

Ask question

All categories

3 years ago

7

Find the duration of a 5% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity

of 6.3%. What is the duration if the yield to maturity is 10.3%? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

1 answer:

lidiya [134]3 years ago

5 0

Answer:

2.8238 Years

Explanation:

Please see attachment

You might be interested in

If a monopolist or a perfectly competitive firm is producing at a break-even point, then:

Klio2033 [76]

If a monopolist or a perfectly competitive firm is producing at break-even point then they're basically equaling their average revenue to the average total cost - ii.

This basically means that they are operating at a level where the amount which they produce relates to the amount they spend.

4 0

3 years ago

Cool Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 c

Scrat [10]

Answer:

<u>Cost of Goods Sold Budget</u>

October November

Cost of Goods Sold $1,568,000 $1,664,600

<u>Inventory Budget</u>

October November

Total $752,920 $772,800

<u>Purchase Budget</u>

October November

Budgeted Purchases $2,259,320 $2,397,880

Explanation:

<u>Cost of Goods Sold Budget</u>

Gross Profit Margin = 30% therefore Markup is 70%

October November December

Sales $2,240,000 $2,378,000 $2,520,000

Cost of Goods Sold (70%) $1,568,000 $1,664,600 $1,764, 000

<u>Inventory Budget</u>

October November

Base Amount $420,000 $420,000

Based on Sales (20%) $332,920 $352,800

Total $752,920 $772,800

<u>Purchase Budget</u>

October November

Budgeted Sales $2,240,000 $2,378,000

Add Budgeted Closing Inventory $752,920 $772,800

Total Purchases Needed $2,992,920 $3,150,800

Less Budgeted Opening Inventory ($733,600) ($752,920)

Budgeted Purchases $2,259,320 $2,397,880

September Closing Stock is October`s Opening Stock

Therefore September Closing Stock = $420,000 + $1,568,000 × 20%

= $733,600

6 0

3 years ago

Harrison Corp. wants to raise its level of service to enhance customer experience. The board of directors sent out an email cont

romanna [79]

Answer:

Downward communication

Explanation:

Downward communication in a formal structure is the flow of information in terms of orders, appreciation, encouragement from higher authority to subordinates across the organization.

Upward communication in the form of feedback and problems flow from lower level employees to upper level. Here, the board of directors are top level employees who have passed the message to the employees to raise the level of service. This is a form of downward communication.

4 0

3 years ago

Andrew carnegie was a native of what country? ireland scotland switzerland united states 2. carnegie made his fortune primarily

slavikrds [6]

He was born in the city of Dunfermline which is in the country Scotland.

7 0

3 years ago

Read 2 more answers

9. A bank loaned York Construction Company $35,000 on a 1-year, 6% note, but deducted the interest in advance. The journal entry

Rudiy27

Answer: The correct answer is c. increase in Discount on Notes Payable for $2,100.

Explanation: 6% of $35,000 for a year is $2,100. From the facts in the question, the Bank deducted the interest in advance, this means the net cash York Construction Company got was $35,000 - 2,100 = $32,900 but note that this does not change the principal amount obligation the Company is obliged to pay the bank, which remains $35,000. What the Company needs to do is to recognize the $35,000 as Notes Payable (Debit Cash and Credit Notes Payable) and recognize a Discount on Notes Payable of $2100 (Debit Discount on Notes Payable and Credit to Cash). Subsequently, based on the 1-year tenor, the Company would unwind the discount to finance charge / interest expense as $2,100 / 12 = $175 monthly (Debit Interest expense; Credit Discount on Notes Payable).

4 0

3 years ago