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katrin [286]
3 years ago
9

Calculate the value of a bond that matures in 16 years and has a $ 1 comma 000 par value. The annual coupon interest rate is 13

percent and the​ market's required yield to maturity on a​ comparable-risk bond is 12 percent. The value of the bond is ​$ nothing. ​ (Round to the nearest​ cent.)

Business
1 answer:
spayn [35]3 years ago
7 0

Answer:

$1,069.74

Explanation:

We use the present value formula which is shown in the attachment below:

Data provided in the question

Future value = $1,000

Rate of interest = 12%

NPER = 16 years

PMT = $1,000 × 13% = $130

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the value of the bond is $1,069.74

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Why should your business use Performance Planner?
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The process of developing budget estimates by requiring managers to estimate sales, production, and other operating data as thou
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Answer:

Zero based budgeting

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Read 2 more answers
"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are en
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Answer:

a. $112,000

b.    $7,500

Explanation:

(a) transferred out

Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.

Cost of units transferred out = $8 × 14,000 units

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(b) in ending work in process

Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).

Cost of ending work in process

Materials ($3 × 2,000 units)                  = $6,000

Conversion ($3 × (2,000 units × 25%)) =  $1,500

Total Cost                                               = $7,500

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