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tensa zangetsu [6.8K]
3 years ago
6

Wine and Roses, Inc. offers a 7% coupon bond with semiannual payments and a yield to maturity of 7.73%. The bonds mature in 9 ye

ars. Blank 1. Fill in the blank, read surrounding text. is the market price of a $1,000 face value bond
Business
1 answer:
Art [367]3 years ago
5 0

Answer:

current market price = $953.29

Explanation:

the market price of the bond = present value of the face value + present value of coupon payments

PV of face value = $1,000 / (1 + 3.865%)¹⁸ = $505.31

PV of coupon payments = $35 x 12.79935 (PV annuity factor, 3.865%, 18 periods) = $447.98

current market price = $505.31 + $447.98 = $953.29

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Which of the following marketing variables is concerned with design, quality, and packaging? O A. Promotion O B. Place O C. Pric
Gala2k [10]

Answer:

promotiopeicen

Explanation:

product

8 0
2 years ago
Ploeger Corporation has provided the following contribution format income statement. Assume that the following information is wi
Crazy boy [7]

Answer:

Break-even point (dollars)= $234,000

Explanation:

Giving the following information:

Sales (4,000 units) $ 240,000

Variable expenses 156,000

Fixed expenses 81,900

To calculate the break-even point in dollars, first, we need to determine the selling price and unitary variable cost:

Selling price= 240,000/4,000= $60

Unitary variable cost= 156,000/4,000= $39

Now, we can calculate the break-even point:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 81,900/ [(60 - 39) / 60]= $234,000

8 0
3 years ago
On January 1, 2022, The Eighties Shop has 100,000 shares of common stock outstanding. The Eighties Shop incurred the following t
Anastasy [175]

Answer:

Date        General Journal                Debit            Credit

March 1   Bank A/c                        $2,650,000

                  (53,000 × $50)

                       Share Capital A/c                            $53,000

                        (53,000 × $1)

                        Share Premium A/c                        $2,597,000

                        [53,000 × $49 ($50 - $1)}  

                (Being additional 53,000 issued shares for $50)

May 10     Treasury Stock A/c            $254,400

                (4,800 × $53)

                        Cash A/c (4,800 × $53)                  $254,400

               (Being purchase of 4,800 treasury stock for $53 )    

June 1       Retained Earning A/c        $207,480  

                 (1,53,000- 4,800) × $1.4

                          Dividend Payable A/c                   $207,480

                           [(153,000 - 4,800) × $1.4]

                 (Being cash dividend declared)

July 1        Dividend Payable A/c       $207,480

                           Cash A/c                                        $207,480

                 (Being cash dividend paid)

October 21  Cash A/c (2,400 × $58)   $139,200

                          Treasury Stock (2,400 × $53)          $127,200

                          Paid in Capital from treasury Stock $12,000

                           (2400 × $5)

                    (Being 2,400 Treasury Stock sold for $58)

8 0
2 years ago
Phillippe invested $1,000 ten years ago and expected to have $1,800 today He has neither added nor withdrawn any money since his
jasenka [17]

Answer:

The interest paid on loan was at floating rate which means that the investor earning was lower because of lower interest rate than the interest rate he was expecting.

Explanation:

Because the bond was dependent on the floating rate in the market. The borrower kept paying the investor at the floating rate not at the fixed rate which would had increased its investment worth to $1800. As $1600 is less than $1800 so the interest rate agreed was floating rate interest.

4 0
3 years ago
Assume the total cost of a college education will be $184,061 when your child enters college in 19 years. You presently have $49
Leni [432]

Answer:

Interest rate = 0.9313

Explanation:

Future value or the cost of edcuation after 19 years = $184061

Present value, money in hand at present = $49327

Time period, n = 19

Future value = Present value (1 + r)²

184061 = 49327 (1 + r )²

(1 + r )² = 184061 ÷ 49327

(1 + r )² = 3.73

(1 + r) = √3.73

(1 + r) = 1.9313

r = 1.9313 - 1

r = 0.9313

Or Interest rate = 0.9313

4 0
3 years ago
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