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Alex17521 [72]
3 years ago
9

Four years ago, Lisa Stills bought six-year, 13.68 percent coupon bonds issued by the Fairways Corp. for $947.68. If she sells t

hese bonds at the current price of $913.73, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round answer to 2 decimal places, e.g. 15.25%.) Realised rate of return %
Business
1 answer:
LekaFEV [45]3 years ago
5 0

Answer:

10.60%

Explanation:

First, we calcualte the returns and then solve for the rate like a normal compounding:

<u>returns:</u>

annual coupon payment. 1,000 face value x $ 13.68 = $ 136.80

sales price: 913.73

<u>total:</u> 136.8 x 6  + 913.73 = 820.80 + 913.73 =

<em />

<u>cost:    </u>  947.68

to  record the effective rate of return:

947.64 (1+ r_e)^6 = 1,734.5\\

\sqrt[6]{\frac{1,734.5}{947.68}} -1 = r_e

<u>effective rate of return:</u> 0.105992287 = 10.60%

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I think the answer is A
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Which of the following methodologies might be most appropriate if you have a system project with: unclear requirements; very fam
Anna71 [15]

Answer:

The last option is wrong, the correct option to that question is: Extreme Programming.

And the correct answer is that option.

Explanation:

To begin with, the name of <em>"Extreme Programming"</em> refers to a specific methodology of development of software that mainly focuses in the improvement of software quality and the responsiveness to changing customers requirements. Moreover, this methodology best fits in the cases where the system project comes with unclear requirements and where there is a short time schedule due to the fact that as a type of agile software development it advocates frequent releases in short time cycles that are primarily focus on introducing checkpoints in where the requirements of the consumers who are unclear can be adopted.

5 0
3 years ago
After all of the account balances have been extended to the Balance Sheet columns of the end-of-period spreadsheet, the totals o
SOVA2 [1]

Answer:

This indicates that

d.the company has a net loss of $9,575 for the period.

Explanation:

a) Data and Calculations:

Total debits of the balance sheet (assets) = $28,480

Total credits of the balance sheet (liabilities + equity) = $38,055

Difference (net loss) = $9,575 ($38,055 - $28,480)

b) With the determination of the net loss of $9,575, the two sides (debits and credits) of the balance sheet will equal.  This is because the net loss of $9,575 will reduce the credits from $38,055 to $28,480.

5 0
3 years ago
Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and pruning process. Machine maintena
seropon [69]

Answer:

Cutting = $62,020

Pruning = $16,280

Explanation:

<em>The direct method does not consider the impact of reciprocal servicing arrangement when allocating the overhead  of service centers and only allocates overhead to the production cost centers only.</em>

Allocation of Overhead

Janitorial overhead

Cutting = 6/(6+54)×   $5,000 = $500

Pruning =54/(6+54) ×  $5,000= $4,500

Maintenance overhead

Cutting = 9/(9+1)×   $7,800 = $7020

Pruning =1/(9+1) ×  $7,800= $780

Total cost of production department

Cutting = 54,500 + 500 + 7020= 62,020

Pruning department = 11,000 + 4,500 + 780 = 16,280

Cutting = $62,020

Pruning = $16,280

7 0
3 years ago
Bread Co. commenced operations during the year as a large importer and exporter of baked goods. The imports were all from one co
storchak [24]

Answer: c. $300,000

Explanation:

Here, the shipping costs from overseas is part in inventory costs whereas the shipping costs to export are part of expense not inventory.

Given: Purchases during the year  $15.0 million

Shipping costs from overseas$1.5 million

Shipping costs to export customers$1.0 million

Inventory at year end $3.0 million

Amount of shipping costs should be included in ABC Trading's year-end inventory valuation = (Inventory at year end)÷(Purchases during the year ) × (Shipping costs from overseas)

= ($3,000,000) ÷ ($15,000,000) × ($1,500,000)

= $300,000

Hence, the correct option is c. $300,000.

3 0
3 years ago
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