Please help me. ...

You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous ow

Nonamiya [84]

Answer:

Minimum selling price for the bond = $11350.38

Explanation:

Given - You have just purchased a municipal bond with a $10,000 par

value for $9,500. You purchased it immediately after the previous

owner received a semi-annual interest payment. The bond rate is

6.6% per year payable semi-annually. You plan to hold the bond for

4 years, selling the bond immediately after you receive the interest

payment. If your desired nominal yield is 3% per year compounded

semi-annually.

To find - What will be your minimum selling price for the bond?

Proof -

Formula for Bond value is -

Bond value = $\frac{Coupon Amount}{( 1+ Interest rate)^{1} } + \frac{Coupon Amount}{( 1+ Interest rate)^{2} } + \frac{Coupon Amount}{( 1+ Interest rate)^{3} } + .....\frac{Coupon Amount}{( 1+ Interest rate)^{n} }$

As given,

Coupon Rate = 6.6%

⇒Coupon Rate for semi-annual = 3.3%

and hereby time period becomes double i.e 8 years.

Now,

Interest rate = 3%

For semi-annual , interest = 1.5%

Now,

Coupon amount = 10,000×3.3% = 330

Now,

Bond value = 330 ×PVIF(1.5% , 8) + 10,000×IVAF(1.5%, 8)

= 330×7.486 + 10,000×0.888

= 11350.38

∴ we get

Minimum selling price for the bond = $11350.38

6 0

3 years ago

Delta Distributors has accounts receivable of $2,750,000 and average daily credit sales of $118,280. The firm offers credit term

liq [111]

Answer:

The firm's accounts receivable period is 23.25 days

Explanation:

Accounts receivable period = 365 / Account receivable turnover ratio

When Account receivable turnover ratio = Net sales / Account receivables

Account receivable turnover ratio = 118,280 * 365 days/ 2,750,000

Account receivable turnover ratio = 15.698

Hence, Account receivable period = 365 / 15.698

Account receivable period = 23.25 days

3 0

3 years ago

The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009. An

jok3333 [9.3K]

Missing Question Data:

As the Question is missing relevant data, I have searched for it online and found a question similar. The data is attached in a picture file. It might be a little different from your actual question but same approach can be used to solve the question.

Answer with Explanation:

For simplicity, we denote the compensations with variable <em>x </em>and the stock return with variable <em>y.</em> Let us first find the mean and standard deviation for both compensation (x) and return (y).

Mean of Compensation (<em>x) </em> will be,

$X\;=\;\frac{26.43\;+\;12.03\;+\;19.74\;+\;13.54\;+\;11.97\;+\;11.41\;+\;25.94\;+\;14.46\;+\;17.13\;+\;14.71}{10}$

$X\; = \;16.737$

Mean of Stock Return (y) will be,

$Y\;=\;\frac{5.43\;+\;30.89\;+\;31.89\;+\;80.06\;-\;8.22\;+\;2.89\;+\;4.39\;+\;10.95\;+\;4.18\;+\;11.94}{10}$

$Y\;=\;17.44$

Standard Deviation for Compensation (x) is given by,

$\sigma _{x}\;=\;\sqrt{\frac{\sum (x_{i}-X)^{2}}{N}}$

$\sigma _{x}\;=\;\sqrt{\frac{(26.43-16.73)^{2}+(12.03-16.73)^{2}+....+(14.71-16.73)^{2}}{10}}$

$\sigma _{x}\;=\;5.30$

Standard Deviation for Compensation (x) is given by,

$\sigma _{y}\;=\;\sqrt{\frac{\sum (y_{i}-Y)^{2}}{N}}$

$\sigma _{y}\;=\;\sqrt{\frac{(5.43-17.44)^{2}+(30.89-17.44)^{2}+....+(11.94-17.44)^{2}}{10}}$

$\sigma_{y}\;=\;23.97$

To find the predicted stock return, we have to use the equation for of line of regression,

$y_{required}\;-\;Y\;=\;z\;*\;\frac{\sigma _{x}}{\sigma _{y}}\;*\;(x_{required}-X)\;.........\;(1)$

where,

$z\; =\;Correlation\;coefficient\;=\;-0.2426\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;(given)$

$x_{required}\;=\;Compensation\;of\;\$15\;million\;=\;15$

$y_{required}\;=\;Stock\;return\;at\;x_{required}$

Equation (1) will become,

$y_{required}\;-\;17.44\;=\;-0.2426\;*\;\frac{5.30}{23.97}\;*\;(15\;-\;16.73)$

$y_{required}\;=\;-0.054*\;(-1.73)\;+\;17.44\;$

$y_{required}\;=\;17.533$ .

4 0

3 years ago

The following amounts were reported by Burke Company before adjusting its immaterial overapplied manufacturing overhead of $8,00

Alex_Xolod [135]

Answer:$722,000

Explanation:

The over applied overhead of $8000 is deducted from cost of goods sold of $730,000.

3 0

3 years ago

When equipping your office your first concern should be

jok3333 [9.3K]

When equipping your office your first concern should be the equipping yourself and your office (virtual or otherwise) is connectivity.

<h3><u>Explanation:</u></h3>

Office refers to the workplace where the task that are assigned by an organisation gets completed. This place involves the collection of people who work for achieving the objectives of an organisation. When equipping the office there should be consideration for all things that are very essential for the work completion.

The first thing to be focused while equipping an office includes the connectivity that you have in completing the work. It may be either virtual or anything. When you could not go to office in any unavoidable circumstances the virtual connectivity helps you in working form anywhere.

5 0

3 years ago

Please help me. ...​

Please help me. ...