Answer:
Stated yield is 11.04%
expected yield is 5.78%
Explanation:
The expected yield to maturity can be computed using the rate formula in excel which is given below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay which is 13
pmt is the amount of coupon interest the bond pays which is $1000*10%=$100
pv is the current price of the bond which is $930
fv is the face value of $1000
=rate(13,100,-930,1000)=11.04%
However the expected yield has the coupon interest reduced to one -half as calculated below:
=rate(13,100*0.5,-930,1000)=5.78%
Answer:
Effective interest recognized on June 30, 20X1, will be equal to $3,354
Explanation:
Data provided from the question,
Amount of bond issued on January 2, 20X1 = $100,000 of 6% bonds
Interest = $3000
Payable semi-annually on June 30 and December 31
Number of years to mature = 5 years
The bond issued for $95,842 with an effective interest rate of 7%
Therefore, the Effective interest recognized on June 30, 20X1 =
bond issued × effective interest rate × semiannually(1/2)
= $95,842 x 0.07 x 0.5
= $3,354
Explanation:
According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .
The beta values for both the stock is given as -
Stock A = 0.82
and ,
Stock B = 1.29 ,
From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both .
Since , in the above case the absolute sense can not be determined and only the judgement can be made .
<span>Given data shows that $1000 as salvage value and purchased computer for $8000
Depreciation was:
(8,000 - 1,000) / 5 = 1,400 per year.
Two year's depreciation = 2,800
Book value after two years = 8,000 - 2,800 = 5,200
After the estimates are revised, there are two more years remaining with a salvage value of 500.
(5,200 - 500) / 2 = 2,350 depreciation for 2018</span>
Answer:
Granite is a light-shaded molten stone with grains adequately huge to be obvious with the independent eye. It structures from the moderate crystallization of magma beneath Earth's surface. Stone is made basically out of quartz and feldspar with minor measures of mica, amphiboles, and different minerals. Granite slabs are gotten from unique locales that are known as quarries. Utilizing incredible machines, a mining organization mines and shoots crude rock out of the quarry. Processing Machines Cut the Slabs. After rock has first been mined out of the earth, it will be in an exceptionally harsh structure.
Explanation:
