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2 years ago

What do people think about the homeless

Business

1 answer:

zlopas [31]2 years ago

7 0

They've either had crippling addictions, lacked the will to work, disabled, or just went bank rupt from a bad deal.

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Bond Yields and Rates of Return A 30-year, 10% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a c

Nookie1986 [14]

Answer:

The bond's yield to maturity is 9.45% using Excel to get exact values, and 9.59% using approximate method.

Explanation:

We can calculate is using 2 ways, using Excel to get the exact percentage or with approximate methods, calculating the semi-annual Yield to Maturity using the following formula

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

And from there we can calculate the Yield to Maturity just by multiplying the semi-annual one by 2.

Identifying the given information.

We have a period of 30 years, so for the semiannual bond we have $n=2(30) = 60$ periods.

The face value, FV, is $1000, the coupon rate is 0.10, thus we can use them to find the interest per period PMT.

$PMT=0.10 \times \cfrac{1000}{2}\\PMT=\$ 50$

The current price of the bond, PV is $1050.

Replacing the values on the semiannual Yield to Maturity

$YTM_{sm} =\cfrac{PMT+\cfrac{FV-PV}n}{\cfrac{FV+PV}2}$

$YTM_{sm}=\cfrac{50+\cfrac{1000-1050}{60}}{\cfrac{1000+1050}{2}}$

Simplifying we get

$YTM_{sm}=4.797\%\\$

Finding the Yield to Maturity.

We can just multiply by 2 to get the Yield to Maturity from our previous result and rounding it to 2 decimals we get

$YTM = 2 YTM_{sm}\\YTM=9.59\%$

Alternatively we can use Excel and write:

RATE(n, PMT, PV, FV)*2

That is

RATE(60,50,1050,1000)*2

And we will get the exact Yield to maturity 9.49%

3 0

2 years ago

A company purchased new equipment for $60,000. The company paid cash for the equipment. Other costs associated with the equipmen

olya-2409 [2.1K]

Answer: The cost of the equipment is $66,500.

Explanation: Under IAS 16 Property, Plant and Equipment, the cost of an asset comprises:

purchase price plus import duties and taxes
any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management
the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located

In the question, $60,000 was the purchase price, the transportation cost of $1,000 was necessary to bring the asset to the location intended by management, $3,000 was the sales tax and the installation cost of $2,500 was also necessary for the asset to function as intended by management. So all these costs would be capitalized as the cost of the equipment as $66,500.

3 0

3 years ago

Shannon’s has developed a super-premium craft beer to be marketed as Shannon’s Irish Stout. The cost of production (brewing, can

Arte-miy333 [17]

Answer:

$4.48

Explanation:

If Shannon needs to make a 12% markup based on cost, to obtain her minimum selling price to her distributor Miller of Denton, simply multiply the production cost per unit by 100% plus the desired markup.

If it costs her $4.00 to produce a six pack, her selling price should be:

$P=1.12*\$4.00\\P=\$4.48$