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
weqwewe [10]
3 years ago
14

Nine years ago the Templeton Company issued 26-year bonds with an 11% annual coupon rate at their $1,000 par value. The bonds ha

d a 9% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer to two decimal places.
Business
1 answer:
sergij07 [2.7K]3 years ago
6 0

Answer:

11.62%

Explanation:

Note: see the attached excel file for how the realized rate of return is estimated.

Face value = $1,000  

Years completed = 9

Coupon rate = 11%

Coupon amount ($) = 110  

Call premium = 9%

Call price = 1,090

Realized rate of return = 11.62%

Download xlsx
You might be interested in
When you should send an email
Greeley [361]

B. When the subject matter is objective and informative

8 0
2 years ago
Read 2 more answers
A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and has no salvage value. Assume depreciat
Nat2105 [25]

Answer:

NPV = -$132,193.77

Explanation:

best case NPV:

price per unit (+4%) = $48.88

sales per year (+4%) = 32,240

variable cost per unit (-2%) = $22.54

fixed costs (-2%) = $826,042

depreciation expense per year = $227,000 / 4 = $56,750

contribution margin per unit = $26.34

23% tax rate

discount rate = 11.5%

initial outlay = $227,000

net cash flows = {[($26.34 x 32,240) - $826,042 - $56,750] x 77%} + $56,750 = $30,885.392

NPV = -$132,193.77

5 0
2 years ago
the cumulative difference between reporting inventory at lifo rather than fifo is commonly referred to as the
UkoKoshka [18]

The cumulative difference between reporting inventory at LIFO rather than FIFO is commonly referred to as the LIFO reserve

<h3>What is LIFO reserve?</h3>

Generally, LIFO reserve is an accounting term that represents the difference between the cost of inventory calculated using the first-in, first-out (FIFO) method and the cost calculated using the last-in, first-out (LIFO) method for the purposes of bookkeeping.

In conclusion, The LIFO reserve is a term that is widely used to refer to the accumulated discrepancy that results from reporting inventory using the LIFO method rather than the FIFO method.

Read more about LIFO reserve

at brainly.com/question/28146683

#SPJ1

8 0
1 year ago
A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a
Nostrana [21]

Answer and Explanation:

The computation is shown below

a. The economic order quantity is

= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)

= sqrt ((2 × 1,215 × $10) ÷ $75)

=  18 units

b) Average number of bags on hand is

= EOQ ÷ 2

= 18 ÷ 2

= 9

c) Orders per year is

= D ÷ EOQ

= 1215 ÷ 18

= 67.5

= 68

d) Total cost = Total carrying cost+ Total ordering cost

= (Q ÷ 2)H +(D ÷ Q)S

= (18 ÷ 2)75 + (1215 ÷ 18) × 10

= 675 + 675

= $1350

3 0
2 years ago
Assume that the level of capital flows between the U.S. and the country of Krendo is negligible (close to zero) and will continu
murzikaleks [220]

Answer:

Stronger

Explanation:

Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.

Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.

3 0
3 years ago
Other questions:
  • What does it mean when a job application asks for names previously used?
    11·2 answers
  • Entries for notes payable Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. Assume a 360
    11·1 answer
  • Explain just in time(JIT) approach?
    6·1 answer
  • As a store manager, Leah has to play the role of negotiator, such as purchasing products at a fair price for her company. As she
    10·2 answers
  • A company produces 500 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactu
    11·1 answer
  • John has finally gotten to the point where he can put away some money and start a rainy day fund. He wants to have access to his
    7·1 answer
  • Ana is trying to finish an account analysis for a client, but she's missing data. She e-mails Claire in database administration
    10·1 answer
  • If the general education level within a country rises significantly over time, it is likely that: the country’s production possi
    15·1 answer
  • One of Stine Company’s activity cost pools is machine setups, with estimated overhead of $300000. Stine produces sparklers (400
    6·1 answer
  • An organization that provides services or goods to consumers and needs to make a profit is a Response area.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!