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Irina-Kira [14]
3 years ago
9

Find the price of a corporate bond maturing in 5 years that has a 5% coupon (annual payments), a $1,000 face value, and an AA ra

ting. A local newspaper's financial section reports that the yields on 5 year bonds are: AAA = 6%, AA = 7%, and A = 8%.
Business
2 answers:
zepelin [54]3 years ago
6 0

Answer:

$917.99

Explanation:

BP = Sum of discounted annual coupon payment + discounted face value

Coupon = 1000 × 0.05 = $50

The bond is AA reted so we use the 7% yiled

Sum of coupons

50/1.07)^1 +50/(1.07)² + 50/(1.07)³ + 50/ (1.07)^4 + 50/ (1.07)^5

=$205

Discounted face value =1000/ 1.07^5

=$712.98

BP = 205 + 712.99

    =$917.99

Ainat [17]3 years ago
3 0

Answer:

$917.996

Explanation:

First, we calculate price:

Price = 5% * 1000 = $50.

At the fifth year, Price = $1000 + $50 = $1050

The price of the Corporate bond is given as:

50/(1+.07) + 50/(1+.07)² + 50/(1+.07)³ + 50/(1+.07)⁴ + 1050/(1+.07)^5

= 917.9960512810481

=$917.996 ---- Approximated

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Client Agreement is a contract between the client and the contractor. Both parties will sign on the written client agreement contract and both are held accountable on the terms and conditions specified in the contract.
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Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

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Project Organizational Capability
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3 0
3 years ago
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components depart
Arlecino [84]

Answer:

Way Cool

1. Overhead Cost per unit for each product line:

                                      Model 145                        Model 212

Overhead cost per unit    $434.97                         $457.59

2. Total cost per unit for each product line:

                                      Model 145                        Model 212

Total cost per unit           $634.97                          $569.59

3. The profit or loss per unit for each model:

                                      Model 145                        Model 212

Market price                      515.95                             303.34

Loss per unit                   $119.02                          $266.25

Explanation:

a) Data and Calculations:

Process Activity     Overheads   Driver Quantity     Components  O/H rates

Changeover          $ 627,450     Number of batches        890          $705

Machining                 379,155      Machine hours            8,050            $47.10

Setups                      108,000      Number of setups            60       $1,800

Total                     $ 1,114,605

Finishing

Welding                 $ 220,580     Welding hours             4,100       $538

Inspecting                 254,200     Number of inspections 820       $310

Rework                        47,200     Rework orders               160       $295

Total                       $ 521,980

Support Purchasing $ 158,600   Purchase orders           488      $325

Providing space            30,900   Number of units        8,400      $3.68

Providing utilities         126,180    Number of units        8,400      $15.02

Total                        $ 315,680

Additional production information concerning its two product lines follows.

                                 Model 145      Model 212

Units produced            2,800             5,600

Welding hours                800              3,300

Batches                           445                 445

Number of inspections   510                 310

Machine hours            2,750             5,300

Setups                               30                  30

Rework orders                 90                   70

Purchase orders            325                 163

                                 Model 145                            Model 212

Units produced            2,800                                  5,600

Welding hours              $430,400 (800*$538)    $1,775,400 (3,300 * $538)

Batches                            313,725 (445*$705)          313,725 (445*$705)

Number of inspections    158,100 (510*$310)             96,100 (310*$310)

Machine hours                129,525 (2,750*$47.10)   249,630 (5,300*$47.10)

Setups                               54,000 (30*$1,800)          54,000 (30*$1,800)

Rework orders                 26,550 (90*$295)            20,650 (70*$295)

Purchase orders             105,625 (325*$325)          52,975 (163*$325)

Total overhead costs $1,217,925                       $2,562,480

Units produced            2,800                                  5,600

Overhead cost per unit    $434.97                         $457.59

Direct labor and materials 200.00                             112.00

Total cost per unit           $634.97                          $569.59

Market price                      515.95                             303.34

Loss per unit                    $119.02                          $266.25

4 0
2 years ago
Bright Minds Toy Company prepared the following sales budget for the second quarter. Projected sales for each of the first three
Verizon [17]

Answer:

Total sales is $1,777,000

Explanation:

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cash sales                $115,000   $77,000         $140,000             $332,000  

sales on account     $455,000  $500,000      $490,000        $1,445,000

Total sales                 $570,000 $577,000      $630.000        $1,777 ,000

Above is the sales analysis for the three months April to June,the total sales in the quarter is $1,777,000 which comprises of both cash sales and credit sales in all of the three months.

Sales does not be cash,as sales is to recognized when the entity making the sale has performed its obligation of delivering the goods to the customers or delivered on  an agreed service.

 

4 0
3 years ago
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