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matrenka [14]
3 years ago
6

What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that curre

ntly sells at 97.50 percent of its face value and is 145 days from maturity?
Business
1 answer:
aleksklad [387]3 years ago
6 0

Answer:

(a) 6.206%

(b) 6.54%

(c) 6.58%

Explanation:

Given that,

Commercial paper value = $3 million

Currently selling at 97.50 percent of its face value.

Days from maturity = 145

(a) Discount yield:

= \frac{(Face\ value - Current\ price)}{Face\ value}\times\frac{360}{Days\ in\ maturity}

= \frac{(100 - 97.50)}{100}\times\frac{360}{145}

= 0.025 × 2.4827

= 0.06206 or 6.206%

(b) Bond equivalent yield:

= \frac{(Face\ value - Current\ price)}{Current\ price}\times\frac{365}{Days\ in\ maturity}

= \frac{(100 - 97.50)}{97.50}\times\frac{365}{145}

= 0.026 × 2.52

= 0.0654 or 6.54%

(c) Effective annual return:

Future value = Present value × (1+r)^{n}

$100 = $97.50 × (1+r)^{\frac{145}{365}}

(\frac{100}{97.50})^{\frac{365}{145}} = 1+r

1.0658 = 1 + r

0.0658 or 6.58% = r

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Answer:

c. it specifies the roles and responsibilities of each member of the supply chain.

Explanation:

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The key principle of supply chain management can be best summed up as collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing, a wholesaler, and a retailer who typically sells the products to the customers or consumers.

Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.

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3 years ago
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snow_tiger [21]
They are forms of Communication.
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The city council is getting ready to build a new power plant, which is expected to bring jobs to the community, but also generat
Dominik [7]

Answer:

environmental racism

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Goshford Company produces a single product and has capacity to produce 105,000 units per month. Costs to produce its current sal
Salsk061 [2.6K]

Answer:

Net income= $4,836,200

Explanation:

Giving the following information:

Offer:

21,000 units for $77.4

An increase in variable cost= $7.6 per unit

Direct materials $ 12.50 $ 1,050,000

Direct labor 15.00 1,260,000

Variable manufacturing overhead 14.00 1,176,000

Fixed manufacturing overhead 17.50 1,470,000

Variable selling and administrative expenses 14.00 1,176,000

Fixed selling and administrative expenses 13.00 1,092,000

Totals $ 86.00 $ 7,224,000

First, we need to calculate the effect on the income of accepting the offer:

Effect on income= 21,000*77.4 - 21,000*(12.5 + 15 + 14 + 14 + 7.6)

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6 0
3 years ago
Wilson has a 40 percent interest in the assets and income of the CC&W Partnership, and the basis in his partnership interest
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Answer:

a. $24,000

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In the given case, the partnership interest is $45,000 and the share of his loss is $24,000

So, $24,000 is reported in his individual income tax return

b. The computation of the Wilson's basis in his partnership interest is shown below:

= Basis in his partnership interest - share of the loss -  cash distribution received from the partnership

= $45,000 - $24,000 - $12,000

= $9,000

3 0
3 years ago
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