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Brut [27]
4 years ago
6

Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What

is the market price per bond if the face value is $1,000 and the yield to maturity is 7.2 percent?
Business
1 answer:
Anarel [89]4 years ago
8 0

Answer:

Total $1,091.0030

Explanation:

The market value of the bond will be the sum of the present value of the cuopon payment and the maturity date:

present alue of cuopon payment will be calculate as present value of an ordinary annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 42.25   (1,000 face value x 8.45% /2 payment per year)

time 21 (10 years at 2 payment per year+ 1 payment)

rate 0.036   (here we use the YTM rate /2 because there are 2 payment per year)

42.25 \times \frac{1-(1+0.036)^{-21} }{0.036} = PV\\

PV $615.1803

<u>Then, for the present value at maturity, we calculate the present value of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   21.00

rate  0.036

\frac{1000}{(1 + 0.036)^{21} } = PV  

PV   475.82

<u>Finally, we add them both together</u>

PV c $615.1803

PV m  $475.8227

Total $1,091.0030

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Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statem
Levart [38]

Answer:

a) Break-even point in dollar for 2017

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost)/Sales

C.M Ratio = $(2,500,000-1,750,000)/2,500,000

C.M Ratio = 0.30 or 30%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.30

= $2,833,333.33

<u>Alternative 1</u>

<em>Sales Price per unit after increasing 20%,</em>

Sales Price = ($5*0.2) + $5 = $6

Total Sales ($) = (Sales Price x Sales Units)

Total Sales ($) = ($6*500,000) =$3,000,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = ($3,000,000- $1,750,000)/$3,000,000

C.M Ratio = 0.42 or 42%

Break-even point in dollars = Fixed expense/C.M Ratio

B-E point ($) = $850,000/0.42

= $2,023,809.52

<u>Alternative 2</u>

<em>Commission</em> = $2,500,000*5% = $125,000

Change in fixed annual salaries = $150,000-$60,000 = $90,000

Total fixed costs after deducting the changes in fixed salaries = $850,000-$90,000 = $760,000

Contribution margin ratio = Contribution Margin/Sales

C.M Ratio = (Sales - Variable Cost - Commission on sales)/Sales

C.M Ratio = ($2,500,000-$1,750,000-$125,000)/$2,500,000

C.M Ratio = 0.25 or 25%

Explanation:

Sales = $2,500,000

Sales Unit = $2,500,000/500,000 = $5

Variable Cost = 1,750,000

Fixed costs = $850,000

7 0
3 years ago
An individual who buys goods and services to satisfy unlimited wants and needs would fall into which category in the circular fl
hram777 [196]
I believe thatthe answer is consumer.
3 0
3 years ago
Last year a country’s real GDP grew by 4%, it’s inflation rate was 2.5%, and it’s government budget deficit was about $250 billi
Arturiano [62]

Answer:

d. 3.85 trillion

Explanation:

Step 1: Given data

GDP = GDP grew by = 4% = 0.04

R = inflation rate was = 2.5% = 0.025

D = government budget deficit was = $250 billion

Step 2: Formula

X = debt at the start of last year

X = D / (GDP + R)

Step 3: Computation

X = 250 billion / (0.04 + 0.025)

X = 250,000,000,000 / 0.065

X = 3,846,153,846,153.85

Step 4: Convert to trillion

X = 3,846,153,846,153.85 / 1,000,000,000,000

X = 3.85 trillion

The correct option is d. 3.85 trillion

Hope this helps!

5 0
3 years ago
________ is the centralized policy-based management of all information required for access to corporate systems by people, machi
Ket [755]

Answer:

The answer would be b) identity management

Explanation:

Identity management is used to authenticate users and to determine if they are authorized to access specific systems. Identity management operates by linking user rights and constraints with recognized identities.  Identity management ensures that only authorized users can access to organizational systems while those without access are restricted.  

8 0
3 years ago
When did jurassic world come out
steposvetlana [31]
June 12 2k15

I loved that movie and watched it the first day
5 0
3 years ago
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