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aleksandr82 [10.1K]
3 years ago
6

A 6.5 percent coupon bond with 14 years left to maturity is priced to offer a 7.2 percent yield to maturity. You believe that in

one year, the yield to maturity will be 6.8 percent. What is the change in price the bond will experience in dollars? (LG7-5)
Business
1 answer:
olasank [31]3 years ago
5 0

Answer:

The correct answer is : 35.49

Explanation:

Calculation of the current bond price:

N = 28, I = 3.6, PMT = 32.50

FV = 1,000; CPT PV = -938.89

Calculation of the price in one year:

N = 26, I = 3.4, PMT = 32.50,

FV = 1,000; CPT PV = 974.38

So, the dollar change in price is:

$974.38 - $938.89 = $35.49

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Bens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following u
DochEvi [55]

Answer:

Bens Corporation

Allocation of Service Departments' Direct Costs:

                               Repairs        HR           IT          M1         M2           Total    

Direct costs          $36,000  $55,600  $81,000                              $172,600

Step allocation:

HR direct costs        5,560   -55,600      11,120    19,460    19,460              0

IT costs                            0              0   -92,120    20,471     71,649              0

Repairs costs        -41,560              0             0    16,624    24,936              0

Total costs allocated      0              0             0 $56,555 $116,045 $172,600

Explanation:

a) Data and Calculations:

Usage data:

                      Repairs     HR       IT     M1      M2

Repairs                            0%     0%   40%   60%

HR                     10%       __     20%   35%   35%

IT                        0%       10%    __     20%   70%

HR Costs = $55,600:

Repairs = $5,560 ($55,600 * 10%)

IT = $11,120 ($55,600 * 20%)

M1 = $19,460 ($55,600 * 35%)

M2 = $19,460 ($55,600 * 35%)

IT costs = $92,120:

Repairs = $0 ($92,120 * 0%)

M1 = $20,471 ($92,120 * 20/90)

m2 = $71,649 ($92,120 * 70/90)

Repair costs = $41,560:

M1 = $16,624 ($41,560 * 40%)

M2 = $24,936 ($41,560 * 60%)

4 0
3 years ago
Read 2 more answers
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Answer:

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The journal entries will be as follows:

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The Bretton woods system of exchange rates relied on <u>"fixed or pegged exchange rates, with occasional orderly adjustments to the rates."</u>



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I think it'd be E. I hope that helps!

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