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NNADVOKAT [17]
3 years ago
15

A $1000 bond with a coupon rate of 6.2% paid semiannually has eight years to maturity and a yield to maturity of 8.3%. If intere

st rates rise and the yield to maturity increases to 8.6%, what will happen to the price of the bond
Business
1 answer:
ohaa [14]3 years ago
7 0

Answer:

The price of the bond will be $879

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually

Number of periods = n = 2 x 8 years = 16 periods

Current Yield = r = 8.3% / 2  = 4.15% semiannually

Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]

Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]  

Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]  

Price of the Bond = $521.74 + $357.26   = $879

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Domingo corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the f
SSSSS [86.1K]

Answer:

The cost per unit equivalent

Materials   $ 155,950/ 6100= $ 25.57

Conversion costs $120,060/ 6100= $ 19.68

Explanation:

6,100 units were transferred to the second processing department during the month.

Costs were incurred in the first processing department during the month:

Cost

Materials costs $158,700 - $ 2750= $ 155,950

Conversion costs $120,400- $ 340 = $ 120,060

The cost per unit equivalent

Materials   $ 155,950/ 6100= $ 25.57

Conversion costs $120,060/ 6100= $ 19.68

Beginning Inventory Costs

Material cost $5,500 *50% = $ 2750

Conversion costs $1,700* 20%=  $ 340

5 0
3 years ago
At Aalten Technologies, bottlenecks in the assembly line occur according to a Poisson process with an average of 0.50 bottleneck
RideAnS [48]

Answer:

Probability (at least one bottle neck occurs during 8 hours of operation) = 0.9817

Explanation:

Given:

Average bottleneck 1 hour = 0.5

Find:

Probability (at least one bottle neck occurs during 8 hours of operation)

Computation:

Expected events in 8 hour = 8(0.5)

Expected events in 8 hour = 4    

Probability (at least one bottle neck occurs during 8 hours of operation) = p(X≥1)

Probability (at least one bottle neck occurs during 8 hours of operation) = 1-p(X=0)

Probability (at least one bottle neck occurs during 8 hours of operation) =1-exp(-4)[4⁰]/0!

Probability (at least one bottle neck occurs during 8 hours of operation) =1-0.0183

Probability (at least one bottle neck occurs during 8 hours of operation) = 0.9817

5 0
3 years ago
How to set up a small business plan for loan​
VashaNatasha [74]

Answer:

You suck!!

I new I should of flagged you!

5 0
2 years ago
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When steve jobs was ceo of apple his charisma, marketing skills, and technical vision helped create a(n) ____ at apple that made
dybincka [34]
Enthusiastic Because Steve was all about creating and encouraging
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3 years ago
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes
Strike441 [17]

Answer:

Allocated MOH= $44,268

Explanation:

Giving the following information:

Direct labor:

The budget for the year includes $432,000 payroll for 4,800 direct labor-hours.

Total estimated overhead= $632,400

Actual Direct labor hour (for an order)= 336 hours

First, we need to calculate the plantwide estimated manufacturing overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 632,400/4,800= $131.75

Now, we can allocate the overhead based in actual direct labor hours:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 131.75*336= $44,268

4 0
2 years ago
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