Crane Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face
1 answer:
Answer:
Present value of zero coupon bond = $283
Explanation:
Provided that zero coupon bonds are to be issued.
In zero coupon bonds issue price is less than face value to meet the needs.
Interest rate = 13%
Duration = 10 years, Paid semiannually.
Thus periods = 20
Interest rate =
Therefore, Present value factor @6.5% for 20 periods = 0.283
Therefore, Value of bond today = $1,000 0.283 = $283
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Answer:
-$3,547 unfavorable
Explanation:
For the computation of labor rate variance for January first we need to find out the standard direct labor cost which is shown below:-
Standard Direct labor cost = Produced units × Standard quantity of direct labor × Standard price of direct labor
= 3,440 × 0.8 × $33
= $90,816
Labor rate Variance = Standard direct labor cost - Actual labor cost
= $90,816 - $94,363
= -$3,547 unfavorable
Therefore for computing the labor rate variance we simply applied the above formula.
