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ser-zykov [4K]
3 years ago
11

offers a 6.3 percent bond with a current market price of $767.50. The yield to maturity is 8.49 percent. The face value is $1,00

0. Interest is paid semiannually. How many years is it until this bond matures
Business
2 answers:
musickatia [10]3 years ago
7 0

Answer:

9.25 years

Explanation:

Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond. Price of the bond is calculated by following formula:

According to given data

Assuming the Face value of the bond is $1,000

Coupon payment = C = $1,000 x 6.3 = $63 annually = $31.5 semiannually

Current Yield = r = 8.49% / 2  = 4.245% semiannually

Market value = $767.50

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

Market Value of the Bond = $31.5 x [ ( 1 - ( 1 + 4.425% )^-n ) / 4.425% ] + [ $1,000 / ( 1 + 4.425% )^n ]

n = 18.53 / 2

n = 9.25 years

Bad White [126]3 years ago
5 0

Answer:

27.85years

Explanation:

Nper = ? (indicates the period)

PV = 767.50 (indicates the price)

FV = 1000 (indicates the face value)

Rate = 8.49%/2 (indicates semi-annual YTM)

PMT = 1000 x 6.30% x 1/2 = 31.50 (indicates the amount of interest payment)

Period = Nper(Rate,PMT,PV,FV)/2 = Nper(8.49%/2,31.50,-767.50,1000)/2 = 27.85 Years

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As you get older, a Target Date Fund will adjust by…
makkiz [27]

Answer:

The correct answer is letter "B": Decreasing your stocks and increasing your bonds.

Explanation:

Target-date funds are pools of assets employees with a 401(k) retirement account can access. <em>Target-date funds consider stocks as riskier assets than bonds</em>, thus, more stocks than bonds are included in the fund of the employee at first. However, <em>as soon as the date when the employee is to retire approaches, the fund automatically lowers the number of stocks in the employee's account to include more bonds</em>, which are safer securities.

7 0
3 years ago
Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon. Complet
Darina [25.2K]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

Price ceiling:-This is show the limit of the price on maximizing value of the product which is decided by government and his imposed group for customer.

Binding:-The binding price ceiling is below the equilibrium price.  

Unbinding:-The unbinding price ceiling is above equilibrium price.  

Price floor:-This is show the limit of the price on lower value of the product which is decided by government and his imposed group for customer. A price floor must be higher than the price equilibrium price in order to be effective.  

Binding:-The binding price floor is above the equilibrium price.  

Unbinding:-The unbinding price floor is below the equilibrium price.

It is given that the equilibrium price of milk is $2.50 per gallon.

Statement 1:-This is the example of price floor and binding because minimum price of $2.30 per gallon is decided.

Statement 2:-This is the example of price floor and binding because minimum price of $3.40 per gallon is decided for gasoline.

Statement 3:-This is the example of price floor and binding because teenagers are not hired due to minimum-wage laws.  

7 0
3 years ago
What is the acceleration of an object that has a mass of 4.0 kg if the net force acting on it is 26N
Lynna [10]
Use Newton's Second Law: Fnet = ma
where Fnet = total net force, m = mass of object, and a = acceleration of object.

You are given Fnet = 26N and m = 4.0kg. Plug them into the equation and solve for a:
26 = 4.0a
a = 6.5

The answer is 6.5 m/s^2
7 0
3 years ago
Requirements
Stella [2.4K]

Journal entries:

Nov. 1, common stocks issued

Dr Cash 41,000

    Cr Common stock 41,000

Nov. 4, office supplies and furniture purchased

Dr Office supplies 1,200

Dr Furniture 2,300

    Cr Accounts payable 3,500

Nov. 6, service revenue

Dr Cash 2,100

    Cr Service revenue 2,100

Nov. 7, land purchased

Dr Land 27,000

    Cr Cash 27,000

Nov. 10, service revenue

Dr Accounts receivable 800

    Cr Service revenue 800

Nov. 14, payment of furniture

Dr Accounts payable 2,300

    Cr Cash 2,300

Nov. 15, wages expense

Dr Wages expense 1,470

    Cr Cash 1,470

Nov. 17, collection of accounts receivable

Dr Cash 500

    Cr Accounts receivable 500

Nov. 20, service revenue

Dr Accounts receivable 680

    Cr Service revenue 680

Nov. 25, received cash in advance

Dr Cash 1,900

    Cr Unearned revenue 1,900

Nov. 28, service revenue

Dr Cash 3,100

    Cr Service revenue 3,100

Nov. 29, purchase prepaid insurance

Dr Prepaid insurance 840

    Cr Cash 840

Nov. 30, wages expense

Dr Wages expense 1,470

    Cr Cash 1,470

Nov. 30, rent expense

Dr Rent expense 650

    Cr Cash 650

Nov. 30, utilities expense

Dr Utilities expense 650

    Cr Accounts payable 650

Nov. 30, dividends distributed

Dr Retained earnings 2,800

    Cr Dividends payable 2,800

Dr Dividends payable 2,800

    Cr Cash 2,800

Since there is not enough space here, I prepared an excel spreadsheet with the T-accounts.

In order to prepare a trial balance sheet, I must first prepare an Income Statement:

Service revenue              $6,680

Wages expense             ($2,940)

Rent expense                   ($650)

<u>Utilities expense              ($650)</u>

Net income:                    $2,440

Retained earnings = $2,440 (net income) - $2,800 (dividends) = ($360)

        STEWART CO.

     BALANCE SHEET

       NOV. 30, 2018

Assets:

Cash $12,070

Accounts receivable $980

Prepaid insurance $840

Office supplies $1,200

Furniture $2,300

Land $27,000

Total assets: $44,390

Liabilities and stockholders' Equity:

Accounts payable $1,850

Unearned revenue $1,900

Common stock $41,000

Retained earnings ($360)

Total liabilities and stockholders' equity: $44,390

Download pdf
8 0
3 years ago
You own 100 shares of Troll Brothers' stock, which currently sells for $120 a share. The company is about to declare a 2-for-1 s
SSSSS [86.1K]

Answer:

You will have 200 shares of stock, and the stock will trade at or near $60 a share.

Explanation:

When a company declares a 2-for-1 stock split, its shares' value is cut by half, while the number of stocks of each share holder doubles.

If, before the split, the stock had a value of $120 per share, after the stock split it will sell for close to $60 a share.

If you previously had a position of 100 shares of Troll Brothers' stock, after the 2-for-1 split you will have 200 shares.

Therefore, you will have 200 shares of stock, and the stock will trade at or near $60 a share.

8 0
3 years ago
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