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Ksju [112]
3 years ago
11

Pelzer Printing Inc. has bonds outstanding with 9 years left to maturity. The bonds have a 8% annual coupon rate and were issued

1 year ago at their par value of $1,000. However, due to changes in interest rates, the bond's market price has fallen to $910.40. The capital gains yield last year was -8.96%.What is the yield to maturity? Do not round intermediate calculations. Round your answer to two decimal places.

Business
1 answer:
ICE Princess25 [194]3 years ago
5 0

Answer:

9.53%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.  

The NPER represents the time period.

Given that,  

NPER - 9 years

PMT - $1,000 × 8% = $80

Present value = $910.40

Future value = $1,000

The formula is shown below:

= Rate(NPER;PMT;PV;FV;Type)

The present value come in negative

So, after solving this, the answer would be 9.53%

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NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $61 and has variable costs of $43. Mo
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Answer:

See explanation

Explanation:

We first calculate weighted avg total break even point.

The formula or this is,

Total Break even = Total fixed costs / Weighted avg contribution

Weighted avg contribution = (Contribution of A12 * Weight of A12) + (Contribution of B22 * Weight of B22) + (Contribution of C124 * Weight of C124)

Contribution/ Product =

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B22 = 108 - 78 = $30

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Thus,

Weighted avg Contribution = (18*0.56) + (30*0.27) + (97*0.17) = $34.67

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Simply multiply total break even units with each products weight to calculate qty for each product to b produced.

A12 = 10085*0.56 = 5647.6 units

B22 = 10085*0.27 = 2722.94 units

C124 = 10085*0.17 = 1714.45 units

as per the sales mix.

We can also calculate how many units of each individual product are required for break even as,

A12 = 249624/18 = 13868 units

B22 = 249624/30 = 8320.8 units

C124 = 249624/97 = 2573.44 units

Hope that helps.

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4 years ago
If house prices in the neighborhood immediately fall by 10 percent (before any mortgage payments are made), what would happen to
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Diminishing returns to specialization suggests that it is worthwhile for companies to Blank______. Multiple choice question. spe
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