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LekaFEV [45]
3 years ago
10

A BBB-rated, $1000 face value, corporate bond has a yield to maturity of 8.2%. A U.S. Treasury security has a yield to maturity

of 6.5%. These yields are quoted as APRs with semiannual compounding. Both bonds pay semiannual coupons at a rate of 7% and have five years to maturity. What is the price (expressed as a percentage of the face value) of the treasury bond?

Business
1 answer:
Shalnov [3]3 years ago
5 0

Answer:

Price of treasury bond in terms of percentage of face value is 102.106%

Explanation:

Given:

Face value (FV) = $1000

Coupon rate = 7% or 3.5% semi-annually

Coupon payment  (PMT) = 1000×0.035 = $35

YTM (rate) = 6.5% or 3.25% semi-annually

Maturity period (nper) = 5×2 = 10 periods

Using PV function to calculate price of treasury bond:

=PV(rate,nper,pmt,FV)

Price of bond is $1021.06 (it is negative as it is a cash outflow)

Price of bond in terms of percentage of face value = \frac{1021.06}{1000} \times100

=102.106%

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Isabella is a 30% partner in the ITV Partnership. On January 1, ITV distributes $32,000 cash, inventory with a $32,000 fair valu
Mademuasel [1]

Answer:

$0

Explanation:

We know that:

  • Isabella is 30% Partner In ITV
  • with basis of $40000

ITV Distribute s:

  • $32,000 cash
  • $32,000 inventory (Inside Basis $16,000)
  • $16,000 receivable (Inside Basis $24,000)

Therefore, we calculate Isabella's net gain or loss

$32000 × 30% = $9,600 Cash

$32000 × 30% = $9,600 Inventory

$24000 × 30% = $7,200 Receivable

The total amount is

$9600 + $4800 + $7200 =$21,600

Therefore Isabella's net gain or loss will be  $40,000 - $21,600 = $18,400.

From the calculations, Isabella will have $0 gain or loss from the liquidating distribution

8 0
4 years ago
Choose the correct statement regarding the structure of the plasma membrane. Multiple Choice
Nuetrik [128]

Answer:D

Explanation:

The movement of protein in the plasma membrane allows for cellular adaptation to the extracellular environment

7 0
3 years ago
Furniture Face Lift refinishes old wood furniture. Their process for refinishing chairs has 8 workers and 4 stations. Each chair
vichka [17]

Answer:

13.19 hours

Explanation:

Station    Staffing     Processing time (Hours     Capacity = Staffing /

                                    per chair per worker)         Processing time

Stripping     3                            2.5                                   1.2

Priming        2                            1.5                                   1.33

Painting       3                            1.75                                 1.714

Inspection    1                            0.8                                  1.25

Stripping has the lowest capacity, hence it will be having bottleneck, thus the process capacity is 1.2.

Total time to produce the 1st chair = 2.5 + 1.5 + 1.75 + 0.8

Total time to produce the 1st chair = 6.55 hours

Time to produce subsequent chair = 1/1.2

Time to produce subsequent chair = 0.83 hrs

Total time taken to produce 10 chairs = 6.55 hours + 0.83 hrs*8 Workers

Total time taken to produce 10 chairs = 6.55 hours + 6.64 hours

Total time taken to produce 10 chairs = 13.19 hours

5 0
3 years ago
Suppose you were trying to decide which of two machines to purchase. furthermore, suppose the length to which the machines cut a
aev [14]

You also need to look at the variability of the machines. Less variation is more desirable to be purchased since it would not be expected to have many errors in cutting. The distinction of a certain output from other may affect the quality of your product therefore the less variations there is, the more desirable the machine would be. 

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7 0
3 years ago
Some people argue that cover letters are the most important job search document you create. Do you agree or disagree with this s
sweet-ann [11.9K]

Answer:

I dont agree

Explanation:

Cover letters are a good first contact with candidates for a position. They draw attention to the Curriculum Vitae if the Cover Letter is strong enough. Personally, I think that the Curriculum Vitae itself is the most important document that a candidate can create as it specifies all the experience gained through the work life. Additionally, when you are applying to a Job the Cover Letters are optional but the curriculum vitae is always mandatory.

5 0
4 years ago
Read 2 more answers
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