Jared purchased a 10-year $100 par value bond with semiannual coupons at a nominal annual rate of 5% convertible semiannually an
d nominal annual yield rate of 6% convertible semiannually.a. Calculate the book value of the bond immediately after the 4th coupon.b. Calculate the accumulation of discount in the 6th coupon.c. Calculate the interest portion of the 8th coupon.
1 answer:
Answer:
a) The book value of the bond immediately after the 4th coupon:
It is the ending of the period book value from the for the fourth period above schedule = $93.72.
b) Accumulation of the discount in the 6th coupon:
It is the sum of principal portion for period 1 to 6 = 0.28 + 0.29 + 0.29 +0.30 + 0.31 + 0.32 = $1.79
c) Interest portion of the 8th coupon:
It is the interest portion for the 8th period = $2.84.
Explanation:
DEtailed solution is attached below:
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<u>Given:</u>
Total assets before journalizing and posting the adjusting = $128,800
Expired insurance = $800
Expired rent = $2,400
Depreciation = $900
<u>To find:</u>
Total assets after journalizing and posting the adjusting
<u>Solution:</u>
To determine the value of the total assets after journalizing and posting the adjustment, we have to subtract all the given values i.e, the expired rent, expired insurance and the depreciation values from the total assets before journalizing and posting the adjusting.
The calculation is as follows,
Total assets after journalizing and posting the adjusting
Therefore, the required value of the total assets after journalizing and posting the adjusting is $124,700.
Answer:
CMR: 52% --> each dollar of sales generates 52 cent of contribution
VCR: 48% --> 48 cent per dollar of sales are cost
BEPu: 10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.
BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.
Explanation:
selling price per hat: $ 25
variable cost per hat: $ 12
Contribution per unit $ 13
Contribution Ratio:
13/25 = 0.52
Variable cost Ratio:
12/25 = 0.48
Fixed cost: 130,000
Break even point:
dollars of sales BEP: 250,000
units sold to pay up variable and fixed cost: 10,000