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Kisachek [45]
3 years ago
5

The Petit Chef Co. has 10.4 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments

and have a par value of $1,000. If the bonds currently sell for $1,119.34, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Business
1 answer:
Lunna [17]3 years ago
6 0

Answer:

8.10%

Explanation:

For computing the YTM we have to applied the RATE formula that is shown on the attachment

Data provided in the question

Present value = $1,119.34

Assuming figure - Future value or Face value = $1,000  

PMT = 1,000 × 10.4% = $104

NPER = 7 years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative        

So, after solving this, the YTM is 8.10%

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Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs
Kipish [7]

Answer:

Project S = $672.48

Project L = $11,500

Explanation:

Net Present Value (NPV) Is Calculated by Taking the Present day (Discounted) Value of all future Net Cash flows based on the Business Cost of Capital and Subtracting the Initial Cost of the Investment.

Using a Financial Calculator NPV calculations will be as follows:

Project S

CF0 = ( $11,000)

CF1  = $3,400

CF2  = $3,400

CF3  = $3,400

CF4  = $3,400

CF5  = $3,400

i = 14 %

NPV = $672.48

Project L

CF0 = ( $23,000)

CF1  = $6,900

CF2  = $6,900

CF3  = $6,900

CF4  = $6,900

CF5  = $6,900

i = 14 %

NPV = $11,500.

5 0
3 years ago
As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six
Yanka [14]

Answer:

Break-even units = 66.67 units

Explanation:

<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>

<em>The break-even point is calculated as </em>

<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>

Contribution per unit = Selling Price - Variable cost

Contribution per unit = 15- (1+3+0.50) = 10.5

Fixed cost = 500 +( 50× 4) = 700

So the units requited to achieve break-even point:

Break-even point =  700/10.5

                            = 66.67 units

4 0
3 years ago
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zloy xaker [14]

Answer:

c. Sales budget, budgeted income statement, budgeted balance sheet

Explanation:

First, we calculate the sales for the period. It would also calculatethe cash proceeds from sales, which will be useful for the balance sheet.

With that, we can plug sales revenue into the income statement and calcualte the net income.

And with the income statement, we can solve for retained earnings and build up the balance sheet. Among other data

Doing it in any other order, we are going to leave blanks and need to do the next one to fill them. In the proposed orde,r we do not need information from the subsequent budget to complete the previous one, which is good.

6 0
3 years ago
The way the bank determines the balance on which to calculate your interest is known as _____.
neonofarm [45]
The way a bank determines the balance on which you calculate your interest is known as an annual percentage rate. In reality, the banks take the annual percentage rate and charge a person on their daily interest rate. You can find out the daily rate by taking the APR, annual percentage rate, and divide it by the number of days in a year. The correct answer is D. 
4 0
3 years ago
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In a command economy, Individuals fellow thir self-interest without government intervention True or False
GarryVolchara [31]

Answer:

false

Explanation:

command economy is the same as a planned economy where the prices and incomes are decided and fixed by the central government

5 0
3 years ago
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