Broke Benjamin Co. has a bond outstanding that makes semiannual payments with a coupon rate of 5.2 percent. The bond sells for $
945.32 and matures in 16 years. The par value is $1,000. What is the YTM of the bond
1 answer:
Answer:
The correct answer is 5.72%.
Explanation:
According to the scenario, the given data are as follows:
Coupon rate = 5.2%
Coupon rate (semiannual) = 2.6%
par value (FV)= $1,000
Coupon payment(pmt) = $1,000 × 2.6% = $26
Time period = 16 years
Time period ( semi annual) (Nper)= 32
Sell value ( PV) = $945.32
So, we can calculate the rate by using financial calculator.
Attachment is attached below
So, YTM Semiannual= 0.02863 or 2.86%
And YTM annual = 2.86% × 2 = 5.72%
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Answer:
$1150.
Explanation:
Given: Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70.
First, lets calculate total units of inventory available.
Total inventory available for sales during the year=
∴ Total inventory available for sales during the year= 80 units
As given 60 units were sold out of total 80 units.
∴ 20 units of inventory is still remaining.
To determine the cost of unit sold, under LIFO accounting, you start with assumption that you have sold the most recent inventory and work backward.
As 20 units is still available after selling 60 units.
∴ The value of ending inventory=
The value of ending inventory=
∴ The value of ending inventory using LIFO is $1150.