All categories

3 years ago

A __________ bond can be paid off early at a specified price.

1 answer:

8 0

A callable bond can be paid off early at a specified period.
There are also other types of bond revenue bond, municipal bond, put bond etc.
A callable bond is also called a redeemable bond. These bonds offer higher coupon rates. We can calculate the price of callable bond by using this formula:
price of callable bond = price of straight bond - price of call option

You might be interested in

One reason to buy a home instead of rent a home is:

Natali [406]

It’s better to buy a home instead of renting a home because when you rent, your paying someone else’s mortgage! Whereas when you buy a home, you’re paying your own mortgage not someone else’s. It’s also better to buy a house because when you rent, you can’t change anything about the house because it’s essentially not yours. For example, if you wanted to plant s tree in the backyard of your rented house, you wouldn’t be able too because it’s not your yard. Whereas if you bought your house, you could do whatever you want to it because it’s yours.
I hope this helped! :-)

5 0

3 years ago

Read 2 more answers

Lionheart Trucking recently purchased a new truck costing $178,000. The firm financed this purchase at 6.6 percent interest with

kolbaska11 [484]

Answer:

The years of repayment is 7.96 years

Explanation:

The number of years of the loan repayment can be computed using nper formula in excel.

=nper(rate,-pmt,pv,fv)

rate is the monthly interest rate which is 6.6%/12=0.0055

pmt is the amount of monthly repayment which is $2,400

pv is the amount of the finance package received which is $178,000

fv is the total amount of repayment which is unknown hence taken as zero

=nper(0.0055 ,-2400,178000,0)= 95.55 months

= 95.55 /12 months=7.96 years

8 0

3 years ago

On July 1, Mesa Verde, Inc. purchased a 6-month insurance policy for $12,600. Prepaid Insurance was debited for the entire amoun

Luba_88 [7]

Answer:

Option C.

Dr Insurance Expense $2,100

Cr Prepaid Insurance $2,100

Explanation:

The initial payment of $12,600 is for 6 months which means monthly charge of insurance is $2,100 ($12,600 / 6 months). The initial prepaid expense was recorded as under:

Dr Prepaid Insurance $2,100

Cr Cash Account $2,100

At the end of each month, the insurance expense is recognized and the entry is as under:

Dr Insurance Expense $2,100

Cr Prepaid Insurance $2,100

6 0

3 years ago

Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and fac

Nezavi [6.7K]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

In part a, we need to find the following 3 requirements:

1. Direct Materials Price Variance

2. Direct Materials Quantity Variance

3. Total Direct Materials Cost Variance

Direct Materials Price Variance:

It can be calculated by using the following formula:

DMPV = AQ multiplied by (AP minus the SP)

Where,

DMPV = Direct Materials Price Variance

AQ = Actual Quantity

AP = Actual Price

SP = Standard Price

We do have all the data, so just plug in the values into the above equation to get the DMPV.

AQ = 101,000

AP = 6.50 USD

SP = 6.40 USD

So,

DMPV = 101,000 ( 6.50 - 6.40)

DMPV = 10,100 USD

Direct Materials Quantity Variance:

DMQV = SP ( AQ - SQ )

Where,

DMQV = Direct Materials Quantity Variance = ?

SP = Standard Price = 6.40 USD

AQ = Actual Quantity = 101,000

SQ = Standard Quantity = 100,000

Plugging in the values:

DMQV = 6.40 ( 101,000 - 100,000)

DMQV = 6400 USD

Total Direct Materials Cost Variance:

DMCV = SMC - AMC

Where,

DMCV = Direct Materials Cost Variance = ?

SMC = Standard Market Cost = 6.40 USD x 100,000

AMC = Actual market Cost = 6.50 USD x 101,000

DMCV = (6.40 USD x 100,000) - (6.50 USD x 101,000)

DMCV = 640,000 - 656,500

DMCV = 16,500 USD

For part b, we need following particulars:

1. Direct Labor Rate Variance (DLRV)

2. Direct Labor Time Variance (DLTV)

3. Direct Labor Cost Variance (DLCV)

Direct Labor Rate Variance (DLRV) :

DLRV = (ADLR - SDLR) x ADLH

Where,

ADLR = Actual Direct Labor Rate = 15.40 USD

SDLR = Standard Direct Labor Rate = 15.75 USD

ADLH = Actual Direct Labor Hour = 2000

So,

DLRV = (ADLR - SDLR) x ADLH

DLRV = (15.40 USD - 15.75 USD ) x 2000

DLRV = 700 USD

Direct Labor Time Variance (DLTV):

DLTV = ( ADLH - SDLH ) x SDLR

SDLH = Standard Direct Labor Hour = 2080

DLTV = ( 2000 - 2080 ) x 15.75 USD

DLTV = 1260 USD

Direct Labor Cost Variance (DLCV)

DLCV = SDLC - ADLC

SDLC = Standard Direct Labor Cost

ADLC = Actual Direct Labor Cost

DLCV = (1540 x 2000) - (15.75 x 2080)

DLCV = 1960 USD

For Part c, we need following:

1. variable factory overhead controllable variance (VFOCV)

2. fixed factory overhead volume variance (FFOVV)

3. Total factory overhead cost variance (TFOCV)

variable factory overhead controllable variance (VFOCV):

VFOCV = AFO - B

Where,

AFO = Actual Factory Overhead = 8200

B = Budgeted Allowance Based on Standard Hours Allowed = 4160x0.5x4

B = 8320 USD

VFOCV = 8200 - 8320

VFOCV = 120 USD

fixed factory overhead volume variance (FFOVV) :

FFOVV = (S - BH ) x SOR

Where,

S = Standard Hours for actual output = 4160 x 0.5

BH = Budgeted Hours = 2080

SOR = Standard Overhead Rate = 6 USD

FFOVV = (4160 x 0.5 - 2080) x 6

FFOVV = 0 USD

Total factory overhead cost variance (TFOCV):

TFOCV = AFO - SO

Where,

AFO = Actual Factory Overhead = 20,200

SO = Standard Overhead = 2080 x 10

TFOCV = 20,200 - ( 2080 x 10 )

TFOCV = 600 USD

7 0

3 years ago

this is a serious question if you think i like you post a pic and if you think i play a video game you like post the game

ycow [4]

Answer:

pubg mobile

Explanation:

hope this helps you

3 0

3 years ago

Read 2 more answers