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rjkz [21]
3 years ago
12

The 7​-year ​$1 comma 000 par bonds of Vail Inc. pay 9 percent interest. The​ market's required yield to maturity on a​ comparab

le-risk bond is 7 percent. The current market price for the bond is $ 1 comma 100. a. Determine the yield to maturity. b. What is the value of the bonds to you given the yield to maturity on a​ comparable-risk bond? c. Should you purchase the bond at the current market​ price?
Business
1 answer:
Makovka662 [10]3 years ago
7 0

Answer:

a) Yield to maturity = 8.14%

b) The value of the bonds = $917.99

c) Since market value of bond is higher than book value of bond. So investor should not purchase the bond.

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Both a call and a put currently are traded on stock XYZ; both have strike prices of $42 and maturities of six months.
STatiana [176]

Answer and Explanation:

The solution of profit/loss is shown below:-

      Stock Price     Profit/Loss

a.        $32                -$4.30 After 6 months Stock price is less than strike price

b.         $37                -$4.30 After 6 months Stock price is less than strike price

c.          $42              -$4.30 After 6 months Stock price is equal than strike price

d.         $47                 $0.7 ($47 - $42 - $4.30)

e.         $52               $5.7 ($52 - $42 - $4.30)

7 0
3 years ago
Normative statements involve value judgement is these statemen true or false?
KATRIN_1 [288]

Answer:

A normative statement is one that makes a value judgment. Such a judgment is the opinion of the speaker; no one can prove that the statement is or is not correct

Explanation:

3 0
3 years ago
Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at th
masha68 [24]

Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

<em>Step 1 Determine the Number of Closing Work In Process Units</em>

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

                                                   = 6,000 + 38,000 - 36,000

                                                   = 8,000

<em>Step 2 Determine the equivalent units for March 2019</em>

<u>Materials :</u>

<em>Note : Materials are added at the be-ginning of the process, therefore Units Transferred Out and Closing Work In Process are 100% complete in terms of materials</em>

Closing Work In Process Units - 100% =  8,000

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 44,000

<u>Conversion :</u>

<em>Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs</em>

Closing Work In Process Units - 60%  =  4,800

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 40,800

7 0
2 years ago
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is
Harrizon [31]

Answer:

loss at the short run

Explanation:

marginal cost is higher than the marginal revenue

3 0
3 years ago
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production
masya89 [10]

Answer:

Total Equivalent Units Conversion    746,000

Explanation:

Breakfast Cereal Maker

Weighted-Average Inventory Method

Total Equivalent Units

                                     Units               Conversion     Equivalent Units

Particulars                                                   %

Units completed         620,000               100 %             620,000

<u>Add Ending WIP          180,000                70 %               126,000</u>

<u>Total Equivalent Units                                                      746,000</u>

<u />

<em>The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.</em>

<em>As only conversion is required we found out the conversion units only.</em>

3 0
3 years ago
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