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4 years ago

Bond prices and yields Assume that the Financial Management Corporation’s

Business

1 answer:

abruzzese [7]4 years ago

8 0

$1,000-par-value bond had a 5.700%

Current price quote of 97.708

Yield to maturity (YTM) of 6.034%.

A.What was the dollar price of the bond?

Dollar price of bond = Par-value bond x Price of quote

$1,000 x 0.97708= $977.08

b.What is the bond’s current yield?

Current Yield = discount (or coupon) x par-value)/Dollar price of bond

= (0.057000 x $1,000)=57

57/$977.08= 0.05833708601 or 5.83%

C.Is the bond selling at par, at a discount, or at a premium? Why?

The reason been that the bond is selling at discount due to the fact that the coupon is lower than both the current yield and yield to maturity (YTM).

d.Compare the bond’s current yield calculated in part b to its YTM and explain why they differ?

The bond’s current yield in part (b ) is lower because the coupon is so high. If the discount were lower, then the current yield would be close to or the same as the YTM.

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A :)

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4 years ago

The Adjusted Trial Balance section of the worksheet for Van Zant Janitorial Supplies follows. The owner made no additional inves

Tasya [4]

Answer:

$\left[\begin{array}{ccc}Account&DEBIT&CREDIT\\$Cash&18,900&-\\$Account\: Receivable&60,100&\\$Allowance \: doubful \: accounts&&150\\$Inventory&186,500&\\$Supplies&7,170&\\$Prepaid Insurnace&3,090&\\$Equipment&51,300&-\\$Acc \: Dep \: Equipment&-&18,100\\$Accounts \: Payable&&9,000\\$SS \: tax \: payable&&1420\\$Medicare \: tax \: payable&&340\\$Capital&&298,050\\&327,060&327,060\\\end{array}\right]$

Explanation:

The sales, expenses, income summary and drawings accounts will be closed therefore will not be part of the post-closed trial balance.

Thew capital Account will suffer the net change of all these account thus, we can list the assets and liabilities and then, solve for Capital by the difference:

Assets = Laibilities + Equity

327,060 = 150 + 18,100 + 9,000 + 1,420 + 340 + Capital

Capital = 327,060 - (150 + 18,100 + 9,000 + 1,420 + 340)

Capital = 298,050

3 0

3 years ago

One thing that helps incumbents win reelection is ______________, which might include federal spending projects benefiting state

Temka [501]

One thing that helps incumbents win reelection ,which might include federal spending projects benefitting state and local governments, businesses, colleges, and other institutions in a congressional district is

the pork barrel.

Pork barrel :

Pork barrel, or simply pork, is a metaphor for the appropriation of government spending for localized projects secured solely or primarily to bring money to a representative's district.

What is the problem of pork barrel?

The Priority Development Assistance Fund scam, also called the PDAF scam or the pork barrel scam, is a political scandal involving the alleged misuse by several members of the Congress of the Philippines of their Priority Development Assistance Fund (PDAF, popularly called "pork barrel"), a lump-sum discretionary fund

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2 years ago

To remain viable, security policies must have a responsible individual, a schedule of reviews, a method for making recommendatio

Neko [114]

Answer:

(a) True

Explanation:

Security policies must have all this so as to protect the organization from threats, including computer security threats, and how to handle situations when they do occur.

3 0

4 years ago

In 2020, the Merkel Company had revenues of $2,600,000 and costs of $2,100,000. During 2021, Merkel will be introducing a new pr

Artemon [7]

Answer:

d. $88,000

Explanation:

In 2020, Merkel company's

Revenue = $2,600,000

Cost = $2,100,000

Operating profits = Revenue - Cost

= $2,600,000 - $2,100,000

= $500,000

In 2021, the company's;

Revenue increases by $260,000

New revenue = $260,000 + $2,600,000 = $2,860,000

New Cost = $2,100,000 + $172,000 = $2,272,000

New Operating profits = $2,860,000 - $2,272,000

= $588,000

Expected increase in Operating profits = $588,000 - $500,000

= $88,000

The expected increase in operating profit amounts to $88,000.

4 0

3 years ago