Answer:
yield to maturity = 7.06%
Explanation:
yield to maturity (YTM) is calculated using the following formula:
YTM = {C + [(FV - PV) / n]} / [(FV + PV) / 2]
- FV = $2,000
- PV = $1,902.14
- C = $2,000 x 6.48% x 1/2 = $64.80
- n = 12 x 2 = 24
YTM = {64.80 + [(2,000 - 1,902.14) / 24]} / [(2,000 + 1,902.14) / 2] = (64.80 + 4.0775) / 1,951.07 = 0.0353 or 3.53% semianually or 7.06% annually
Since the bond sells at a discount, its yield to maturity will be higher than the coupon rate.
Answer:
see below
Explanation:
Operating expenses are the cost a business incurs while engaging in its normal business operations. They are the costs not directly be attached to the production process. A business incurs operating expenses in managing it day to day activities. They exclude one time expenses such as judgment cost, accounts adjustments, and other non-recurring costs.
Operating expenses are classified into administrative, selling, and general expenses. Businesses cannot avoid operating expenses; hence the management should strive to keep them as low as possible. Examples of operating expenses include rent, salaries, employee benefits, transport, depreciation, repairs, taxes, sales commissions, amortization, and pension contributions.
A.limited supply hope that helps
Answer: Generally, when trying to solve a complex accounting problem in which there are obstacles and little knowledge about the subject, the most advisable thing is to work from a conceptual framework which serves as a guide to find a reasonable answer to the problem in question. In this case Marla was clearly working with a conceptual framework, and instead Jacob was not.
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