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Semmy [17]
2 years ago
7

You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and a 7% annual coupon. The bond has a c

urrent yield of 5.74%. What is the bond's yield to maturity
Business
1 answer:
Andreas93 [3]2 years ago
4 0

Answer:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

Explanation:

The coupon value is 1000 × 7%  = $70

Face Value is $1000

Current price is annual ÷ current yield ∵ 70÷0.0574= $1,219.54

Maturity period: 12 years

YTM of Bond = (70+((1000-1,219.54 / 12)) / ((1000+1,219.54)/ 2) = 4.66 percent

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The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to th
MAXImum [283]

Answer:

$14,506

Explanation:

Calculation to determine what the total materials handling cost allocated to the wall mirrors is closest to:

First step is to calculate Material handling cost per labor hour

Material handling cost per labor hour = $16,754.50 / [(12,900 * 9) + (1,500 * 12)]

Material handling cost per labor hour =$16,754.50/(116,100+18,000)

Material handling cost per labor hour = $16,754.50/134,100

Material handling cost per labor hour =0.124940

Now let calculate the Materials handling cost allocated to wall mirrors

Materials handling cost allocated to wall mirrors = 12,900 *9*0.124940

Materials handling cost allocated to wall mirrors = $14,506

Therefore the total materials handling cost allocated to the wall mirrors is closest to:$14,506

8 0
3 years ago
ou have just read an explanation of the figures you studying as the total dollar value of final goods and services produced with
Shalnov [3]

Answer:

REAL GDP

Explanation:

GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.

This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.

7 0
2 years ago
You are currently earning 12% (APR) compounded semiannually. Your investment company is switching all accounts to daily compound
Sav [38]

Answer:

The rate that will give the same effective annual rate of return is 0.033%.

Explanation:

a) Data and Calculations:

APR = 12%

Semi-annual compound rate = 6% (12/2)

Assumed calendar days in a year = 360 days

Effective daily rate of return = 12%/360 = 0.033%

b) The conversion of semi-annual compounding to daily compounding results in reduced rate of return.  In this case, we assume that there are 360 days in a year.  Since the APR = 12%, it means that the daily rate of return will be 12%/360, which is 0.033%.

6 0
3 years ago
Gullett Corporation had $37,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additiona
Vlada [557]

Answer: See explanation

Explanation:

The journal entry to record the purchase of raw materials is analysed below:

November:

Dr Raw materials $86000

Cr Cash or account payable $86000

It should be noted that as the raw material is increasing, the raw material account will be debited while as the cash or account payable I decreasing, it is credited.

8 0
2 years ago
The public debt typically increases during recessions due to:
Brums [2.3K]
Because the government is out of money so they decide to take it from others
6 0
3 years ago
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