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chubhunter [2.5K]
3 years ago
7

A risk-free bond will pay you $1,000 in 2 years and nothing in between. The annual discount rate is i=27.5% compounded annually.

What is the bond's present value?
Business
1 answer:
denis23 [38]3 years ago
3 0

Answer:

$615.15

Explanation:

Since we have only one cashflow at the end of 2 years and no coupons, find present value (PV). You can use a financial calculator and input the following;

Future value ; FV = 1,000

Duration; N = 2

Interest rate; I/Y = 27.5%

Coupon payments ;PMT = 0

then compute present value; CPT PV = 615.148

Therefore, the bond's PV is $615.15

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<em />

Explanation:

Discrete manufacturing is the production of distinguishable items that can be decayed back into their basic parts. <u><em>For example</em></u><em>:</em> Automobiles, airplanes, furniture, and toys are the examples of discrete manufacturing products.

For industrial purpose the discrete manufacturing contains production of consumer electronics, appliances, computer and related accessories, as well as many other household items. Production of cars and airplanes also falls under discrete manufacturing products. Discrete manufacturing companies manufactures physical items that go straight to the consumers and businesses.

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Ultimate Corporation uses a standard cost system for the production of its water ski radios. The direct labor standard for each
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Answer:

Direct labor rate variance= $594 unfavorable

Explanation:

Giving the following information:

The standard direct labor cost per hour is $7.20.

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3 years ago
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Companies must be prepared at all times to add to or adapt their product lines to satisfy the desires of customers for them to remain competitive.

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Although this strategy may require additional fund but failure to adapt and add new product lines that satisfy wants of the customers can the company out of business.

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