1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harrizon [31]
3 years ago
8

Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 9.5 percent. The bonds make semiannual payments. If these bonds

currently sell for 105 percent of par value, what is the YTM

Business
1 answer:
kolbaska11 [484]3 years ago
5 0

Answer:

8.91%

Explanation:

In this question We applied  the Rate formula which is presented  in the attachment below:

Data given in the question

PMT = 1,000 × 9.5% ÷ 2 = $47.50

NPER = 18 years - 2 years × 2 = 32 years

Present value = $1000 × 105% = $1,050

Assuming figure - Future value = $1,000  

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after solving this, the yield to maturity is 8.91%

You might be interested in
Mr. Wise is retiring In 25 years He would like to accumulate $1,000.000 for his retirement fund by then He plans make equal mont
Montano1993 [528]

Answer:

$532.24

Explanation:

Since Mr. Wise will be making monthly payments for the period of 25 years in order to accumulated the $1,000,000 at the end of 25 years, therefore, the future value of annuity shall be used to determine the monthly payments to be deposited by Mr Wise. The formula of future value of annuity is given as follows:

Future value of annuity=R[((1+i)^n-1)/i]

In the given scenario:

Future value of annuity=amount after 25 years=$1,000.000

R=monthly payments to be deposited by Mr Wise=?

i=interest rate per month=12/12=1%

n=number of payments involved=25*12=300

$1,000,000=R[((1+1%)^300-1)/1%]

R=$532.24

7 0
3 years ago
A Qdoba and a Baja Fresh both close down. They were both very near by a Chipotle. Now that Qdoba and Baja Fresh are gone, what d
Kitty [74]

Answer:

They were not allowed in advance of this investigation

7 0
3 years ago
Item 7 Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment req
Brut [27]

Answer:

5 years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

30,000 / 6,000 = 5 YEARS

6 0
3 years ago
After adjustments at March 31, 20Y2, the end of the first full year of operations, the revenues were $598,000 and expenses were
larisa86 [58]

Answer:

revenues 598,000 debit

      income summary        598,000 credit

--- to close revenues accounts---

income summary 480,000 debit

    expenses            480,000 credit

-- to close expenses accounts ---

income summary 70,000 debit

       lang   withdrawals 40,000 credit

       capri  withdrawals 30,000 credit

--- to close withdrawals account---

Explanation:

We will use income summary account to close the accounts:

as the <u>revenues </u>normal balance is credit to close it, we will debit it.

as <u>expenses </u>normal balance is debit to close it, we will credit it.

<u></u>

<u>the withdrawals are done like:</u>

withdrawals debit

         cash           credit

so their blaance is debit, to close it we will credit them

5 0
3 years ago
Woodman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Estimate
IgorLugansk [536]

Answer:

Underapplied overhead= $20,000

Explanation:

<u>Giving the following information: </u>

Estimated Actual

Direct Labor Hours: 600,000 550,000

Manufacturing Overhead Estimated $720,000 $680,000

<u>I assume that we need to calculate the over/under applied overhead.</u>

<u>First, we need to determine  the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 720,000/600,000

Predetermined manufacturing overhead rate= $1.2 per direct labor hour

<u>Now, we apply overhead based on actual hours:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.2*550,000

Allocated MOH= $660,000

<u>Finally, the under/over applied overhead:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 680,000 - 660,000

Underapplied overhead= $20,000

5 0
3 years ago
Other questions:
  • Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a p
    6·1 answer
  • In a fixed exchange rate​ system, how do countries address the problem of currency market pressures that threaten to lower or ra
    11·1 answer
  • The law of demand applies most directly to which group?
    13·1 answer
  • Resources are used efficiently in the sunhat market because when​ _______.    A. production is capital​ intensive, producer surp
    15·1 answer
  • Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g
    11·1 answer
  • Place the components of the M2 money supply in order, from smallest to largest
    8·1 answer
  • Which of these statements about game design is FALSE?
    12·1 answer
  • Suppose you were writing a social media plan for Two Scoops, with two objectives: to improve brand awareness in new markets and
    11·1 answer
  • Type the correct answer In the box. Spell all words correctly.
    7·1 answer
  • _____ runs a computer and allows people to use the computer to perform specific tasks, such as creating letters, preparing budge
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!