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sashaice [31]
3 years ago
14

Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th

e bond's yield to maturity if the bond is selling for $937.75 (rounded to the nearest whole percent)
Business
1 answer:
lara [203]3 years ago
6 0

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

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Cost of Quality Report
yarga [219]

Answer:

Cost of Quality Report

Quality Cost     Quality Cost Percent of Total       Percent of

Classification                                    Quality Cost              Total Sales

Prevention         $23,400               10.0%                   1.3%

Appraisal         $46,800               20.0%                  2.6%

Internal failure $70,200               30.0%                  3.9%

External failure $93,600               40.0%                  5.2%

Total                        $234,000            100.0%                  13.0%

percent of total sale = quality cost/$1,800,000

3 0
3 years ago
Ash, Inc., has declared a dividend of $6.30 per share. Suppose capital gains are not taxed, but dividends are taxed at 20 percen
alexira [117]

Answer:

$89.41

Explanation:

Data provided in the question:

Dividend declared = $6.30 per share

Tax rate = 20%

Selling price of the stock = $94.45

Now,

Aftertax dividend = Dividend × ( 1 - Tax rate )

= $6.30 × ( 1 - 0.20 )

= $5.04

Thus,

Ex-dividend price = Selling price - Aftertax dividend

or

Ex-dividend price = $94.45 - $5.04

or

Ex-dividend price = $89.41

8 0
3 years ago
Comment down below if you go to Carroll High School in Monroe La
Ganezh [65]

Answer:

yesss but i graduated in 2017

6 0
2 years ago
Which category (or type) of consumer products are: (1) relatively expensive, (2) infrequently purchased, and (3) buyers are will
artcher [175]

Answer:

consumer products provided are categorized thus:

(1) relatively expensive: a computer system

(2) infrequently purchased:  A car

(3) buyers are willing to expend considerable effort in planning and making purchases: A house

Explanation:

Consumer products are defined as products that satisfy a consumer's wants or needs. There can be convenient, affordable as well as expensive and infrequently purchased.

Consumer goods are final goods sold to consumers for  use. It is usually not used as means for further economic production activity.

Some consumer goods are durable and can last for up to three years or more while some are perishable with expiry dates and must be consumed within a short pace of time.

Finally, consumer goods can be grouped into different categories based on consumer behavior depending on how frequently they are used.

7 0
3 years ago
On June 30, Nance Company receives a $5,000, 90-day, 4% note from a customer as payment on her account. How much interest will b
DedPeter [7]

Answer:

50$

Explanation:

5000 x 4% x 90/360 = 50$

5 0
2 years ago
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