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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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Ersatz Beneficial Insurance wants to estimate the cost of damage to cars due to accidents. The standard deviation of the cost is
nikklg [1K]

Answer:

c. 1537

Explanation:

Please see attachment

8 0
3 years ago
Sue plans to mix peppermints worth $1.20 per lb with chocolates worth $2.40 per lb to get a 40 lb mix that is worth $1.65 per lb
Lunna [17]

Answer:

Each should be used as follows:

Weight of peppermints = X = 25 lb

Weight of Chocolates = Y = 15 lb

Explanation:

Suppose

Weight of peppermints = X

Weight of Chocolates = Y

So According to given condition

X + Y = 40 (Eq. 1)

1.2X + 2.4Y = 1.65*40

1.2X + 2.4Y = 66 (Eq. 2)

By multiplying  (Eq. 1) with 1.2 we get

1.2X + 1.2Y = 48  (Eq. 3)

Now by subtracting  (Eq. 2) from  (Eq. 3)

(1.2X + 1.2Y) - (1.2X + 2.4Y) = 48 - 66

1.2X + 1.2Y - 1.2X - 2.4Y = -18

1.2X - 1.2X + 1.2Y - 2.4Y = -18 (Rearrange)

-1.2Y = -18

1.2Y = 18

Y = 18/1.2

Y = 15

By placing value of Y in (Eq. 1)

X + 15 = 40

X = 40 - 15

X = 25

<u>Check</u>

1.2X + 2.4Y = 66

1.2 (25) + 2.4 (15) = 66

66 = 66

6 0
3 years ago
The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgeted $1,250 for
vovikov84 [41]

Answer:20% off is better and it is the only offer which is under the budget.

Explanation:Given,

The original cost of the dining set = $ 1,500,

If there is a off of 20%,

Then the discount on dinning table = 20% of 1500

= $ 300

So, the final amount of the dinning table after 20% off = 1500 - 300 = 1200 < 1250

Thus, it under the budget.

Now, in $ 200 rebate,

The new cost of the dinning table = 1500 - 200 = $ 1300 > 1250,

Thus, it is not under budget.

While, In $150 coupon,

The new cost of the dinning table = 1500 - 150 = $ 1350 > 1250,

Thus, it is not under budget.

5 0
3 years ago
Read 2 more answers
Question
Crank

In the evolution of the internet e-commerce allows people to make transactions online is the event occurred most recently.

<h3>Why e-commerce has grown up so much?</h3>

Today ecommerce has very vast market online and people are likely to sell and purchase the things online rather than going to physical market.

The increase in e-commerce has brought the emergency of online payment of the goods and services in the ecommerce.

Thus, option A is correct.

For more details about  e-commerce, click here:

brainly.com/question/14157556

#SPJ1

7 0
2 years ago
The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv
Mkey [24]

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

7 0
3 years ago
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