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3 years ago

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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Orders for clothing from a particular manufacturer for this year's Christmas shopping season must be placed in February. The cos

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Based on the concept of expected value, the units that the company should order to meet February demand is <u>57 units.</u>

<h3>What is expected value?</h3>

In mathematics under the probability distribution theory, the expected value is the weighted average of possible values of some random variables. The weights are based on the theoretical probabilities of the variables.

<h3>Data and Calculations:</h3>

Cost per unit = $20

Selling price per unit = $50

<h3>Projected Demand</h3>

Demand Units Probability Expected Demand Units

1. 50 units 40% 20 units (50 x 40%)

2. 60 units 50% 30 units (60 x 50%)

3. 70 units 10% 7 units (70 x 10%)

Total expected demand units = 57 units

Thus, the expected demand in February is <u>57 units</u>.

Learn more about calculating expected values at brainly.com/question/10675141

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3 years ago

Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. Th

saw5 [17]

Answer:

ALTERNATIVE 1 $30,000

ALTERNATIVE 2 $28,000

ALTERNATIVE 3 $33,000

Explanation:

Calculation for the incremental income

ALTERNATIVE 1 Sell as it is

Incremental revenue $30,000

(5,000*$6)

Incremental costs $0

Incremental Income $30,000

ALTERNATIVE 2 Disassemble and sell to recycler

Incremental revenue $60,000

(5,000*$12)

Incremental costs $32,000

Incremental Income $28,000

ALTERNATIVE3 Rework and turn into good jackets

Incremental revenue $135,000

(3,000*$45)

Incremental costs $102,000

Incremental Income $33,000

Therefore based on the above calculation the company should choose ALTERNATIVE 3 of the amount of $33,000

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3 years ago

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Answer:

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SLPS trade securities on their own behalf (not for someone else).

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Country A would have an absolute advantage compared to Country B in the production of corn if

viva [34]

Answer:

B) Country A uses fewer resources to produce corn than Country B does.

Explanation:

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3 years ago