Answer:
6.35%
Explanation:
If you purchase this bond you will need to pay $1,000 x 136.04% = $1,360.40
the coupon rate is 9.5% / 2 = 4.75% or $47.50 every six months
the bond matures in 18 years or 36 semiannual periods
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {47.5 + [(1,000 - 1,360.4)/36]} / [(1,000 + 1,360.4)/2]
YTM = 37.49 / 1,180.2 = 0.031766 x 2 (annual yield) = 0.06353 = 6.35%
Answer:
The current price of the bond is $1019.63
Explanation:
The current price of the bond is the present value of the face value of the bond that will be received at maturity plus the present value of the interest payments that the bond will provide.
The interest payments by the bond are of equal amount and after equal interval of time and are for a defined time period. Thus, they can be treated as an annuity and the present value of annuity can be calculated using the interest payments.
The semiannual interest payment by bond is = 1000 * 0.0625 * 6/12 = $31.25
The semi annual YTM = 6.03 / 2 = 0.03015 or 3.015%
The total discounting periods are = 13 * 2 = 26 periods
The current price of the bond = 31.25 * [ (1- (1+0.03015)^-26) / 0.03015 ] +
1000 / (1+0.03015)^26
Current price of the bond = $1019.63
I had to look for the options and here is my answer:
If we based it on the modern times, we can see that China's economic impact on living trends and conditions has positively influenced the people. This means that there is apparent manifestation of the improvement of their living compared to the previous years.
Answer:
EBIT= $3,500
Explanation:
<u>EBIT is the earnings before interest and taxes.</u>
F<u>irst, we need to calculate the sales revenue and cost of goods sold:</u>
Sales= 500*15= $7,500
COGS= 500*2= $1,000
<u>Now, we can determine the EBIT:</u>
Sales= 7,500
COGS= (1,000)
Gross profit= 6,500
Selling and administrative expense= (2,500)
Depreciation expense= (500)
EBIT= $3,500
<u>If we want to determine the net income:</u>
EBIT= 3,500
Interest= (1,000)
EBT= 2,500
Tax= 2,500*0.35= (875)
Depreciation= 500
Net income= 2,125
Answer and Explanation:
The computation is shown below;
1. The depletion expense for the year 2021 is as follows;
= $4,500,000 ÷ 900,000 tons × 240,000 tons
= $1,200,000
2. Yes the depletion would be the part of the product cost and the same would be involved in the inventory cost as it is to be shown under the cost of goods sold when the income statement is prepared
