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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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Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the res
vladimir1956 [14]

Answer:

a) 12.23%

b)  12.94%

c) 14th month payment interest = $157.33

   14th month principal =  $369.50

d)  18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

Explanation:

price of truck = $15000

down payment = $1000

Loan amount = $14,000

assume monthly interest rate = r%

Loan amount after 1 year will be = 14000 * (1+r%)12

next we will determine the annuity factor = [  (1/r)-[(1/r)*(1/ (1+r)t)] ]

r = periodic interest rate , t = number of payments

monthly loan payment = $14000*(1+r%)12 / [  (1/r)-[(1/r)*(1/ (1+r)36)] ]

hence r = 1.019%

a) nominal interest rate

=  1.019% *12 = 12.23%

b) effective interest rate

= (1+1.019%)^12 -1 = 12.94%

attached below is the Amortization schedule

c) 14th month payment interest = $157.33

    14th month principal =  $369.50

d) 18th month payment interest = $142.04

    18th month payment interest = $384.79

e) 22nd month payment interest = $126.12

   22nd month payment interest = $400.71

3 0
2 years ago
Leonard, inc., which uses a volume-based cost system, produces cat condos that sell for $126 each. direct materials cost $10 per
Juli2301 [7.4K]

The gross profit is $146.75

3 0
3 years ago
In comparing the current ratios of two companies, why is it invalid to assume that the company with the higher current ratio is
klio [65]

Answer: I found the options:

A. The current ratio includes assets other than cash.

B. A high current ratio may indicate inadequate inventory on hand.

C. The two companies may define working capital in differentterms.

D. A high current ratio may indicate inefficient use of various assetsand liabilities.

Explanation: The correct answer is "D. A high current ratio may indicate inefficient use of various assets and liabilities."

Is invalid to assume that the company with the higher current ratio is te better company because a high current ratio may indicate inefficient use of various assets and liabilities, That is why it would be convenient to observe other ratios that can help us compare more fully the 2 companies.

4 0
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The Employee Theft coverage of the ISO commercial crime program: a. requires that individual employees be specifically named. b.
anastassius [24]

Answer:

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5 0
3 years ago
Haag Corp.'s 2015 income statement showed pretax accounting income of $1,250,000. To compute the federal income tax liability, t
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Answer:

$80,000

Explanation:

The taxable Income of the Haag Corp can be calculated using the following formula:

Taxable income=Pretax accounting income-income exempt for tax purposes-excess depreciation allowed for tax purposes.

Applying the above formula to the given question:

Pretax accounting income:                                                               $1,250,000

Income  from exempt municipal bond:                                              ($50,000)

Excess depreciation deducted for tax purposes                             ($100,000)

Taxable income                                                                                  $1,100,000

Tax on taxable income(30%*1,100,000)                                            $330,000

Less: Federal income tax already paid                                            ($250,000)  

Tax Liability to be included in Hagg's balance sheet                     $80,000

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3 years ago
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