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erastova [34]
3 years ago
15

Workman Software has 6.4 percent coupon bonds on the market with 18 years to maturity. The bonds make semiannual payments and cu

rrently sell for 94.31 percent of par. a. What is the current yield on the bonds?
Business
1 answer:
Marizza181 [45]3 years ago
4 0

Answer:

Coupon (R) = 6.4% x $1,000 = $64

Semi-annual coupon = R/2 = $64/2 = $32

Current market price (Po) = 94.31% x $1,000 = $943.10                                              

Current yield = <u>R</u>

                         Po

                      = <u>$32</u>

                         $943.10

                      =  0.0339 = 3.39%                                                                                                                                                                                                          

Explanation:

The current yield on the bond is a function of coupon divided by the current market price. The coupon will be divided by 2 since the coupon is paid semi-annually.

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slava [35]

Answer:

It's false

Explanation:

8 0
2 years ago
Absolute v. comparative advantage activity this chart shows how many units of tractors and cotton workers can produce in the uni
goldenfox [79]

Answer: a). Spain

b). none

c). 2.4

Explanation: a). Absolute advantage occurs when a country produces more of a good than the other country. In this case, Spain produces 50 units of Tractors while, Bolivia produces only 30 units of Tractors. Thus, Since Spain is producing more it has an absolute advantage in Tractors.

b). Both the countries are producing equal units of Cotton. Thus, we can say that none of them has an absolute advantage in cotton production.

c. Opportunity cost is the cost of the lost alternative. When Spain produces Tractors it is sacrificing production of Cotton. So, opportunity cost on 1 unit of Tractor will be,

Opportunity cost = \frac{120}{50} =2.4

Thus, 2.4 units of cotton which is given up is the opportunity cost of Spain for producing 1 unit of Tractor.

4 0
3 years ago
A consumer electronics company was formed to develop cell phones that run on or are recharged by fuel cells. The company purchas
rodikova [14]

Answer:

a) $5, 764,000

b) $1, 959,000

Explanation:

The first part of the question is to determine the taxable income of the company

The taxable income - The company's gross income - The Capital Expenditures - The Depreciation expenses for capital expenditure

= $8,500,000 - $2,280,000 - $456,000

= $5,764,000

Part B) This is to determine the Federal Income Taxes for the year

Looking at the income tax distribution tab, we first check where the company falls into

Since, the company has a taxable income of $5,764,000, it falls in the category of

$335,000 to $10,000,000= $113,900 + 34% of the amount over $335,000

As such, the Federal Income Tax

= $113,900 + ($5,764,000- $335,000) x 34%

= $113,900 + $1, 845,000

= $1, 959,000

8 0
3 years ago
For 2018​, Pompi marketing managers project monthly sales of 460 comma 000 ​12-ounce bottles and 200 comma 000 ​1-gallon contain
Eduardwww [97]

Answer:

Budgeted total revenue = $424,000

Explanation:

<em>The revenue budget shows the expected amount sales income projected for the next coming accounting period for a business. It contains data about the expected ales volume for different products, their prices and the estimated sales revenue.</em>

Product         Price             Quantity              Revenue

Ounce             0.40             460,000               184,000

Bottles             1.20             200,000                <u>240,000 </u>

Total revenue                                                     <u>424,000 </u>

Budgeted total revenue = $424,000

           

6 0
3 years ago
Customs officials sell imported products in government-owned stores.<br><br> -True<br><br> -False
liq [111]
The answer is true.

hope this helped :)
4 0
2 years ago
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