Answer:
The answer is 5.73%
Explanation:
Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2
NPER= Years of maturity *2= 12*2=24
PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75
Therefore:
Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%
Yield to maturity= Rate *2= 2.87*2= 5.73%
Answer:
Got this from the same website you used
Explanation:
Advances in technology like the creation of cheap, lightweight laptops have allowed workers to work from almost anywhere. TRUE.
Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Answer: <em>Option (B) is correct.</em>
Explanation:
If true, the following will most seriously weakens the argument: There has been an increasing rate in store opening in the central shopping district (CSD) since Colson's have opened discount stores.
Since after Colson's opened, the locations which were vacant became stores in particular discount store which did not spar with Colson's. Now that we have a discount store & department store without discount. Therefore when these stores close while competing with SpendLess, they wont be replaced with regular non-discount stores .
Answer:
Answer Illustration : Opportunity Cost of producing Wine is lesser in France, Opportunity Cost of producing Sweaters is lesser in Tunisia. So, France has comparative advantage in Wine, Tunisia in Sweater.
Explanation:
Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
Opportunity Cost of producing Sweaters & Wine in France & Tunisia are quantities of other goods (Sweaters or Tunias) sacrifised while choosing either. Sweater Opportunity Cost - Wines sacrifised, Wine Opportunity Cost - Sweaters sacrifised.
The country has a comparative advantage in a good if it can produce it with relatively less opportunity cost (in terms of other good sacrifised) than other country.
Ex : Production Possibilities
Wine Sweater Trade off (Wine :Sweater)
France 10 5 1:0.5 or 2:1
Tunisia 8 24 1:3 or 0.33:1
- France produces Wine with lesser opportunity cost (sweater sacrifised) than Tunisia [0.5 sweater < 3 sweaters] ; it has comparative advantage in Wine.
- Tunisia produces Sweater with less opportunity cost (wine sacrifised) than France [ 0.33 wine < 2 wines] ; it has comparative advantage in Tunisia
