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AlexFokin [52]
3 years ago
7

​A bond with a 12 percent quarterly coupon rate has a yield to maturity of 16 percent. The bond has a par value of $1,000 and ma

tures in 20 years. Based on this information, a fair price of this bond is $____.
Business
1 answer:
Mekhanik [1.2K]3 years ago
5 0

Answer:

fair value is $761

Explanation:

Given data

bond value = $1000

rater r = 12 %

rate R = 16%

time = 20 year

to find out

a fair price

solution

we know compounding period in year is = 4

so time 20 x 4 = 80  

fair Price = \sum_{k=1}^{k=80} [(Quarterly Coupon) / (1 + R/400)^t] +bond value / (1 + R /400)^t

here

Quarterly Coupon = 12 × 1000/400 = 30

so

fair Price = \sum_{k=1}^{k=80} [(30) / (1 + 16/400)^k] + 1000 / (1+16/400)^80

solve it we get

fair value is $761

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The term that best matches the description given.
Leto [7]

Answer:

I think Quantitative data

Explanation:

I'm sry if I'm wrong

4 0
2 years ago
Lueckenhoff Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labo
anastassius [24]

Answer:

C. $9.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

where,

Total estimated manufacturing overhead equals to

= Total fixed manufacturing overhead cost + Direct labor hours × variable manufacturing overhead per direct labor-hour

= $497,000 + 70,000 × $2.40

= $497,000 + $168,000

= $665,000

And, the direct labor-hours is 70,000  

So the rate is equal to

= $665,000 ÷ 70,000

= $9.5 per direct labor-hour

4 0
3 years ago
Oilers, Inc. refines and markets its energy products in different nations around the world. In addition, Oilers' stockholders an
enot [183]
I think it’s D or C but I’m not sure
4 0
3 years ago
Several years ago, Grant County was sued by a former County employee for wrongful discharge. Although it was to be contested by
vovangra [49]

Answer:

d) Debit Expenses $50,000 and Claims payable $100,000; Credit Cash $150,000.

Explanation:

As for the information provided,

There was this law suit against the company from past several years. Where the lawyers already estimated that liability on the company will arise amounting $100,000.

Thus, on the provisional basis such claims of $100,000 would have been provided ideally.

Now, after final judgement the court had cleared about the claim which is $150,000.

Thus, entry to record such claim of $150,000 will be:

Expenses A/c Dr.               $50,000

Claims Payable A/c Dr.      $100,000

    To Cash A/c                                             $150,000

7 0
3 years ago
3. Company with single taxation is called?
bagirrra123 [75]

Answer:

(a) S-Type

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

The different types of tax include the following;

1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.

2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.

3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.

A company with single taxation is called S-Type i.e sole proprietorship.

Basically, a sole proprietorship business is a type of business that is owned by a single person and as such their profits are taxed once as personal income tax.

4 0
3 years ago
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