The Petit Chef Co. has 10.9 percent coupon bonds on the market with seven years left to maturity. The bonds make annual payments
and have a par value of $1,000. If the bonds currently sell for $1,117.33, what is the YTM
1 answer:
Answer:
8.60%
Explanation:
We use the RATE formula i.e shown on the attached spreadsheet
Data provided in the question
Present value = $1,1173.33
Future value or Face value = $1,000
PMT = 1,000 × 10.9% = $109
NPER = 7 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
So, after solving this, the yield to maturity is 8.60%
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Answer:
The balance in the Prepaid Rent account as of April 30, 2018 = $7,200
Explanation:
Monthly rent = $3,600
Rent paid on 1 January = $3,600 6 = $21,600
Out of which Prepaid Rent = $3,600 5 = $18,000
for 5 months
Prepaid rent account as on April 30 balance will be of rent for May and June,
That is $3,600 2 = $7,200
Only this amount will be outstanding in prepaid rent as for the month till April each month rent would have been adjusted from February to April.
Final Answer
The balance in the Prepaid Rent account as of April 30, 2018 = $7,200