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stich3 [128]
4 years ago
8

What is the discount yield, bond equivalent yield, and effective annual return on a $4 million commercial paper issue that curre

ntly sells at 97.50 percent of its face value and is 145 days from maturity?
Business
1 answer:
ddd [48]4 years ago
7 0

Answer:

6.21%

Explanation:

Discount of the bond can be calculated by subtracting the purchase price of the bond from the face value. Discount Yield is the ratio of discount on the bond to the future value of the bond.

Discount Yield = [(F - P)/F] x [360/t]

Where

F = Face Value = $1,000 ( assumed)

P = Present value  = $1,000 x 97.5% = $975

t = 145 days

Placing the value in the formula

Discount Yield = [($1,000 - $975)/$1,000] x [360/145] = 0.0621 = 6.21%

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a credit cards. This is the answer.

3 0
3 years ago
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If the direct materials price variance is $500 favorable, and the direct materials quantity variance is $250 unfavorable, the jo
Norma-Jean [14]

Answer: Options B and C

Explanation:

To account for Direct Material Variance for for price and quantity, it is pertinent to note that Unfavorable variances should be  recorded as debits while favorable variances should be recorded as credits.

Therefore

If the direct materials price variance is $500 favorable, Then Credit should be made to direct material price variance and

If the direct materials quantity variance is $250 unfavorable, Then  a Debit should be made to direct materials quantity variance.

8 0
3 years ago
A soft peg exchange rate may create additional _______________ as exchange rate markets try to anticipate when and how the gover
sattari [20]

A soft peg exchange rate may create additional volatility as exchange rate markets try to anticipate when and how the government will intervene.

<h3>What is an exchange rate?</h3>

An exchange rate refers to the value of a country's currency in relation to another currency. This entails the rate at which a currency will be exchanged for another.

It is the value of one currency for the purpose of conversion to another.

Learn more about exchange rate here : brainly.com/question/2202418

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7 0
2 years ago
If Susie earns $796,000 in taxable income and files as head of household for year 2021, what is Susie's average tax rate
aniked [119]

32.12 %  is Susie's average tax rate.

Calculations for the above answer

Tax rate  Slabs Income Taxable at slab Income Taxable at next slabs Tax($)

10% $0 to $14200 14200 751800 1420

12% $14201 to $54200 40000 711800 4800

22% $54201n to $86350 32150 679650 7073

24% $86351 to $164900 78550 601100 18852

32% $164901 to $209400 44500 556600 14240

35% $29401 to $ 523600 314200 242400 109970

37% $523601 or more 242400 0 89688

     

Total Tax(A) 246043

Total Income(B) 796000

Average Tax rate {(a/b)x 100} 32.12  .

The simplest way to calculate your effective tax rate is to divide your income tax expense by your pre-tax profit (or income). Tax expense is usually the last item before the bottom line (net income) of the income statement.

This difference is due to the 12 months of inflation from September 2020 to August 2021 used to calculate the adjustment.

Learn more about Tax rates here: brainly.com/question/9437038

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8 0
2 years ago
A company is planning to move to a larger office and is trying to decide if the new office should be owned or leased. Cash flows
skad [1K]

Answer:  13.26%

Explanation:

Year 0 Investment = $385,000

Incremental Cash flow every year = Cashflow if owned - Cashflow if leased

= 164,000 - 133,000

= $31,500

Incremental cashflow in Year 10 = Incremental Cashflow + Cashflow from sale of property

= 31,500 + 750,000

= $781,500

Using Excel and the IRR function, the rate is = 13.26%

5 0
4 years ago
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