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OverLord2011 [107]
3 years ago
6

AT&T 10-year, $1,000 par value bond is selling at $1,158.91. Interest on this bond is paid semiannually.

Business
1 answer:
Evgesh-ka [11]3 years ago
6 0

Answer:

Explanation:

Using YTM formula :

YTM = [PMT + {(FV-P) / n}] / [(FV+P)/2]

YTM = Yield to maturity = 14% = 0.14

PMT= Annual interest amount

FV = Face Value = $1000

P = Price =$1158.91

n = years to maturity = 10

 

0.14 = [PMT + {(1000 -1158.91) / 10}] / [(1000 +1158.91)/2]

0.14 = (PMT - 15.891) / 1079.455

PMT- 15.891 = 1079.455 * 0.14

PMT - 15.891 = 151.1237

PMT = 151.1237 -15.891

PMT = 135.23

So, Annual interest = $135.23

Annual interest rate = Annual interest / Face Value

= 135.23 / 1000

= 0.1352

=13.52%

Hence Annual Interest rate on the bond is 13.52%

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TB MC Qu. 9-371 Irving Corporation makes a product with ... Irving Corporation makes a product with the following standards for
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Answer:

Variable manufacturing overhead rate variance= $664 favorable

Explanation:

Giving the following information:

Variable overhead 0.2 hours $ 5.10 per hour

The company used 1,660 direct labor-hours to produce this output. The actual variable overhead cost was $7,802.

<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 7,802/1,660= $4.7

Variable manufacturing overhead rate variance= (5.1 - 4.7)*1,660

Variable manufacturing overhead rate variance= $664 favorable

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3 years ago
Calculate Payroll An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. Assume th
Ket [755]

Answer:

The correct answer for option (a) is $3,080 and for option (b) is $2,141.

Explanation:

(a). Current pay = $44

After 40 hours, Pay = $44 × 1.5 = $66

So, we can calculate the gross pay by using following formula:

Gross pay = (40 hours × $44 ) + (20 hours × $66)

= $1,760 + $1,320

= $3,080

(b).

Security Tax = Gross pay × 6% =  $3,080 × 6% = $184.8

Medicare Tax = Gross pay × 1.5% =  $3,080 × 1.5% = $46.2

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So, we can calculate the net pay by using following formula:

Net Pay = $3,080 - $184.8 - $46.2 - $708

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3 0
3 years ago
How can residential interior and architectural design contribute towards housing evolution(s)?
Ne4ueva [31]

Answer: Residential interior and architectural design contribute towards housing evolution by building and designing the houses.

<u>Explanation:</u>

Architectures are one who works on the structure of the house. They decide what should be the structure of the house. But the residential interior designers, on the other hand, look after the interior of the house. They decorate the house from inside.

Both of them play a very important role in housing evolution. Houses have developed a lot due to the work done by interiors and architectures. Today a large number of houses are seen in urban areas with all the modern amenities.

6 0
3 years ago
Dividing a diverse market into groups of customers who share similar traits or characteristics is the process known as:
victus00 [196]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

5 0
3 years ago
Bob's Boats uses job costing. They use direct labor hours as a basis for allocating overhead costs to jobs. Given the following
Anton [14]

Answer:

Bob's predetermined overhead rate = 9.91

Explanation:

Calculation for predetermined overhead rate

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Predetermined overhead rate = 110917 / 11198

Predetermined overhead rate = 110.917 / 11.198

Predetermined overhead rate = 9.91

8 0
3 years ago
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