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zepelin [54]
3 years ago
6

You bought a 18-year, 7.2% semi-annual coupon bond today and the current market rate of return is 7.8%. The bond is callable in

6 years with a $1,099 call premium. What price did you pay for your bond
Business
1 answer:
kicyunya [14]3 years ago
4 0

Answer:

$ 1,035.18  

Explanation:

The price of the bond can be determined using the pv excel function as below:

=-pv(rate,nper,pmt,fv)

rate is the yield of 7.8%

nper is the number of coupons before the bonds are called which is 6

pmt is the annual coupon i.e face value*coupon rate=$1000*7.2%=$72

fv is the call price in six years' time which is $1099

=-pv(7.8%,6,72,1099)=$ 1,035.18  

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Jaycee Auto Repair has the following budgeted costs for the next year: Time Charges Material Charges Shop employees’ wages and b
liraira [26]

Answer:

Explanation:

Total cost of repairs:

Material = 3,500

Material loading charge = 3,500 * 65% = 2,275

Labor (45hrs* $47per hr) = 2,115

Thus, total cost =(3500 + 2275 + 2115) = $7,890

4 0
3 years ago
How can globalization negatively affect american farmers health
Yuliya22 [10]

Explanation:

Negative Impact of globalisation:

Attraction of global market resulted in farmers shifting from traditional or mixed cropping to unsustainable cropping practices. The competition from cheaper imports pushed down the prices of crops like cotton, wheat etc making agriculture unsustainable for many farmers.

6 0
1 year ago
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The b
Cerrena [4.2K]

Answer:

Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.

Explanation:

The journal entry is given below

Insurance expense A/c Dr $2,400

        To Prepaid Insurance $2,400

(Being insurance expense is recorded)

The computation is shown below:

= Insurance premium ÷ number of months × required months

= $4,800 ÷ 4 months × 2 months

= $2,400 months

The 2 months is taken from November 1 to December 31

6 0
3 years ago
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $10 m
Bas_tet [7]

Answer:

0.1125 or 11.25% for each firm

Explanation:

Given that,

Each has $10 million in invested capital,

$1.5 million of EBIT

25% federal-plus-state tax bracket

ROIC for LL:

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

ROIC for HL

= [EBIT × (1 - tax rate)] ÷ invested capital

= [1.5 × (1 - 25%)] ÷ 10

= 0.1125 or 11.25%

Therefore, the return on invested capital (ROIC) for each firm is 11.25%

6 0
3 years ago
To break even, a business must sell enough units to ________. cover all its costs cover its fixed costs cover variable costs ear
Lostsunrise [7]

To break even, a business must sell enough units to determine the point to cover all its costs cover its fixed costs cover variable costs earn a profit.

If your fixed expenses are ten thousand dollars and also you sell a product for hundred dollars that has an according-to- sell enough unit variable fee of forty-five dollars, you will perform this calculation of ten thousand divided by way of a hundred minus forty-five.

The break-even point is 181.81 products, which you can round up to 182 products you ought to sell to interrupt even. The destroy-even point is the factor at which total fee and overall sales are the same, which means there is no loss or advantage in your small commercial enterprise. fixed costs-Contribution margin in keeping with unit. Your ruin-even point in units will tell you exactly how many devices you need to sell to show earnings. if you're able to sell greater gadgets past this point, you may earn a profit.

Learn more about Earn a profit here:-brainly.com/question/18179970

#SPJ4

6 0
1 year ago
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