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SVEN [57.7K]
3 years ago
14

Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $

962.62 and matures in 13 years. The par value is $1,000. What is the YTM of the bond
Business
1 answer:
kicyunya [14]3 years ago
5 0

Answer: 0.06101 = 6.101%

The yield to maturity of the bond is

6.101%

Explanation:

Using YTM formula below

YTM = C + (fv - pv) /n ÷ (fv + pv) /2

C= coupon rate = 5.7% of par value

5.7/100 × 1000

= $57

pv = price value = $962.62

Fv = face value / par value = $1000

n = number of years to maturity =13

Using above formula

C + ( fv - pv) /n =

57 + (1000 - 962.62) /13

57 + (37.38) / 13 = 59.8753846

(fv + pv) / 2 =

(1000 + 962.62) / 2

= 1962.62 / 2 = 981.31

YTM = C + (fv - pv) /n ÷ (fv + pv) /2

YTM = 59.8753846 / 981.31

YTM = 0.06101

( to percentage) = 6.101%

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3. Which of the following is not a characteristic of a service? (1 point)
Alona [7]

Answer:

marketability is not correct

Explanation:

Four characteristics of service are;

intangibility,

inseparability,

variability and.

perishability.

6 0
3 years ago
Read 2 more answers
Total population: 39,404 Average household income: $121,000 Average household expenditures: $81,000 In their 20s and 30s: 53% Wh
dolphi86 [110]

Answer:

This is the full question:

Before Caffè Gustoso's owners can develop a marketing plan for the new store, they need to decide how to expand.

To keep the market expansion manageable, they have decided to limit the potential locations to the Chicago suburbs. However, they don't know which suburb to target.

The profile of Caffè Gustoso's current downtown customer is as follows:

Total population: 39,404

Average household income: $121,000

Average household expenditures: $81,000

Age range of customers: 53% In their 20s and 30s

Type of employment: 73.3%White collar employment:

Education level: 79.1% Bachelor's degree or higher:

Family status:  Married: 49.3% Households without children: 78%

The owners have collected data on three potential markets presented in the market analysis report shown here and want your feedback.

Which of the Chicago suburbs is the best target for Caffè Gustoso's planned market development?  Deerfield, Aurora or Naperville.

And the correct answer is:

Naperville, IL

Explanation:

The following information for the 3 suburbs is taken form US Census

                        Average

                        Household                                            

                        Income         Median Age  %Married  %W/O Kids Race

Naperville       $105,585       35                   70%          55%             76% White

Aurora               $63,967       32                   54%          53%             56% White

Deerfield        $107,194         40                   73%           56%             95% White

The suburb that fits the average customer is Deerfield, for the following reasons:

  • The average household income of the Caffe Gustoso's customer is $121,000, and the average household income in Naperville is $105,585, a bit less, but not by a lot.
  • 49% of the customers are married, in Naperville, 70% of people are married. The difference is significant, but in Deerfield more people are married (73%), and in Aurora, the percentage of married people is close (54%), but the average income is not ($63,967 vs $121,000).
  • The average customer is in his 20s and 30s, and the median age in Naperville is 35, still in the 30s.
  • 78% of customers do not have children, and in Naperville 55% of people have children, however, the figures are practically the same for the three suburbs so this is inconsequential.
  • 73.3% of customers are white, and 76% of people in Naperville are white, an almost 1:1 correspondence.

5 0
3 years ago
An engineering firm measures its output in standard service hours (SSH) per unit, which is a function of the skill levels of its
tatyana61 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

The variable cost is $60 per SSH and the fixed cost is $2,000,000 per year. The firm charges $100 for each service per hour. Assume the maximum hours the firm operates (that is the output) is 170,000 per year.

1) To calculate the break-even point, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 2,000,000/ (100 - 60)

Break-even point in units= 50,000 hours

2) %of hours= (50,000/170,000)*100= 29.41%

3) Fixed costs= $1,800,000

Break-even point in units= 1,800,000/40

Break-even point in units= 45,000 hours

The number of units required to cover for fixed costs diminished by 10%.

4) Selling price= $110

Break-even point in units= 2,000,000/(110 - 60)

Break-even point in units= 40,000 hours

The number of units required to cover for fixed costs diminished by 20%.

5) In generals terms, it is easier to increase the selling price compared to decreasing fixed costs. In this case, the best option is to increase the selling price. The effect on income and the break-even analysis is higher than decreasing fixed costs.

3 0
3 years ago
ProTech began business at the start of the current year. The company planned to produce 40,000 units, and actual production conf
xxTIMURxx [149]

Answer:

$230,000

Explanation:

Calculation for what the company's absorption-costing income would be:

First step is to calculate the Fixed manufacturing per unit

Fixed manufacturing per unit = $240,000 ÷ 40,000

Fixed manufacturing per unit= $6

Second step is to calculate the per units cost using this formula

Per Unit cost = Sales − Variable costs − Fixed OH

Let plug in the formula

Per Unit cost = $42 − $19 − $7 − $6 = $10 × 37,000

Per Unit cost = $370,000

Now let calculate the what the company's absorption-costing income would be

Absorption-costing=$370,000 − $140,000

Absorption-costing= $230,000

Therefore the company's absorption-costing income would be:$230,000

4 0
2 years ago
Which factor would not cause the demand curve for green tea to shift to the right? a decrease in the price of green tea a decrea
ratelena [41]
the answer i<span>a decrease in the price of green tea</span>
A demnad curve will shift to the right if the product is experiencing an increase in demand. 
research that show a positive result of consuming the product,  and the reduction of complement product would increase the overall demand of that product.

Reduction in the product's price usually followed by the reduction in supply and does not guarantee the demand curve to move to the right.
8 0
3 years ago
Read 2 more answers
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