Given oppurtunity cost in an account. The family's net profit is $10,000, but in accounting terms it would be ($10,000).
Answer:
Explanation:
Par value =1000
Coupon rate = 5.7
Semiannual coupon payment= Par value*coupon rate/ 2 =1000*0.057/2=$28.5
Par value or FV=1000
Semiannual coupon payment(PMT) = 28.5
Years to maturity=22*2=44 semiannual
Annual yield to maturity=6.5
Semiannual yield to maturity = 3.25
For calculation, the formula attached will be used:
Price=28.5*(1-1/(1+0.0325)^44/0.0325)+1000/(1+0.0325)^44 =
= 28.5* ((1-0.2448)/0.0325) + 1000/4.0847= (28.5*23.2364) + 244.81 = $907.05
So, the bond is trading at dsicount because the current price (907.05) is below the face value
Answer:
Allocated to the the word processing products would be$80
To the spreadsheet would be allocated revenues for $170
Explanation:
In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:
allocated to the the word processing products= sold price suits- spreadsheet price
allocated to the the word processing products= $250-$170
allocated to the the word processing products=$80
To the spreadsheet would be allocated revenues for $170
Answer:
The nominal interest rate refers to the interest rate, unadjusted for inflation.
The real interest rate equals the nominal interest rate minus the inflation rate.
Explanation:
The nominal interest rate is equal to the real interest rate plus the expected inflation rate. As a result, the nominal interest rate is an estimated figure, that tries to account for inflation, but because inflation is a number that cannot be fully predicted, it is a rate that is less accurate than the real interest rate, which takes into account the real inflation rate.
Because inflation is a variable that determines whether the investors earn a return or not (if the inflation rate is higher than the real interest rate, the investors actually lose closely), investors must watch closely this rate, because it is the one that actually determines the future of their investments.
Answer:
Predetermined manufacturing overhead rate= $7.19 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 210,000
Estimated overhead costs= $1,510,000
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,510,000 / 210,000
Predetermined manufacturing overhead rate= $7.19 per direct labor hour