1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLga [1]
3 years ago
11

Watters Umbrella Corp. issued 15-year binds two years ago at a coupon rate of 6.2 percent. The bonds make semiannual payments. I

f these bonds currently sell for 98 percent of par value, what is the YTM?
Business
1 answer:
Sholpan [36]3 years ago
5 0

Answer:

YTM = 6.42%

Explanation:

current market value = $1,000 x 98% = $980

n = (15 - 2) x 2 = 26

coupon = $1,000 x 6.2% x 1/2 = $31

face value = $1,000

YTM = [coupon + [(face value - market value)/n]} / [(face value + market value)/2]

YTM = [31 + [(1,000 - 980)/26]} / [(1,000 + 980)/2]

YTM = (31 + 0.77) / 990 = 31.77 / 990 = 0.03209 x 2 (annual yield) = 0.641818 = 6.42%

You might be interested in
You are preparing a chemical hazard label for a new product. You know that the product is flammable, carcinogenic, and may irrit
dlinn [17]

Answer:

Flame, Health Hazard, and Exclamation Mark

Explanation:

Based on the scenario being described within the question it can be said that the pictograms that need to be on the label would be the Flame, Health Hazard, and Exclamation Mark. That is because these pictograms represent the following:

Health Hazard: carcinogen, mutagenicity, Respiratory Sensitizer, Aspiration toxicity, etc.

Flame: flammable, self-heating, organic peroxides, pyrophorics, etc.

Exclamation mark: Respiratory tract irritant, Irritant, Narcotic Effect, etc.

6 0
3 years ago
Abby is so satisfied with her green grocer that she refers her friends and colleagues, providing a(n _______ benefit of maintain
Vesnalui [34]
The most appropriate answer is d. marketing. By developing and maintaining good relationships with customers, businesses can benefit by getting 'free' marketing or advertising. Real customers who are satisfied with a particular product or service are better able to convince potential customers. Businesses benefit in this way by improving the visibility of their brand.  
5 0
3 years ago
If your superior tells you that she will offer you a raise provided you perform additional work beyond the requirements of your
KengaRu [80]

Answer:

reward power

Explanation:

Reward power -

It refers to as the method of using rewards , so that the employee follows a particular instructions , is referred to as reward power .

The reward acts as a bait so that the employee can follow any order of the senior .

As from the given scenario of the question ,

The person works some extra hours in order to get a good increment .

Hence , from the given scenario of the question ,

The correct answer is reward power .

3 0
3 years ago
Riley Company promises to pay Janet Anderson or her estate $150,000 per year for the next 10 years, even if she leaves the compa
Jlenok [28]

Answer:

The Answer is explanatory so it is given as under:

Explanation:

<u>Part 1. At the start of the year:</u>

The part of the salary includes $150,000 per year for the next 10 years and this must be recorded as an deferred compensation liability. All we have to do is to calculate the present value of the annual salary payments.

Present Value = Annual Payment * Annuity factor

And for Annuity factor we will use 5% rate of interest.

So

Annuity Factor = (1 - (1-r)^n) / r

Here

r = 5%

n = 10 years

Which means

Annuity Factor = (1 - (1 + 5%)^10)  / 5%   = 7.722

Hence

Present value = $150,000 * 7.722 = $1,158,260

So the journal entry would be as under:

Dr Deferred Compensation expense $1,158,260

Cr    Deferred Compensation Liability $1,158,260

<u>Part 2. At the end of the Year 1:</u>

At the first year end, the annual payment of $1,158,260 will be discounted back by using the following formula:

Discounted Back Amount = Annual Amount * (1- (1+r)^n)

Remember for the first year n is 10, for second n is 9 and so on.

Discounted Back Amount = 150,000 x (1 - 0.614) = $57,913

Dr Deferred Compensation Expense   $57,913

Cr    Deferred Compensation Liability        $57,913

Part 3. And when the first payment of the salary is made, the journal entry would be:

Dr Deferred compensation Liability $ 150,000

Cr                                       Cash Account    $150,000

Likewise we will till the year 10 and will record the part 2 and part 3 until at the end of the year 10, the whole of the deferred tax liability is reduced to zero.

The life insurance policy payments can not be offset against the deferred compensation liability because it will be accounted for as a different transaction and hence must not be treated as Riley desires.

So the Cash surrender value will be treated as an asset and annual increase in this asset would be treated as an income.

5 0
3 years ago
Presented below is information related to Bobby Engram Company.
Natasha_Volkova [10]

Answer:

A. $ 98,210

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

Explanation:

A. Computation for the ending inventory at retail

Inventory at Retail

Beginning Inventory $ 100,000

Purchase ( Net ) $ 200,000

Net Markup $ 10345

Less Net Markdown ($26,135)

Less Sales Revenue ($ 186,000)

Ending Inventory $ 98,210

Therefore the ending inventory at retail will be $ 98,210

B1) Computation for a cost-to-retail percentage

Excluding both markups and markdowns.

Cost to Retail Percentage

Excluding both Markup and Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Total $ 180,000 $ 300,000

Cost to retail percentage = $180,000/$300,000 Cost to retail percentage = 60%

B2. Computation for a cost-to-retail percentage Excluding Markups but Including Markdown

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase (Net) $ 122,000 $ 200,000

Less Mark down ($ 26,135)

Total $ 180,000 $273,865

Cost to retail percentage= $180,000 /$ 273,865*100

Cost to retail percentage= 65.73 %

B3. Computation for a cost-to-retail percentage Excluding Markdowns but including Markups

Cost Retail

Beginning Inventory $ 58,000 $ 100,000

Purchase Net $ 122,000 $ 200,000

Add Net Markups $ 10,345

Total $180,000 $ 310,345

Cost to retail percentage = $180,000 / $ 310,345*100

Cost to retail percentage = 58 %

B4. Computation for a cost-to-retail percentage Including both Markups and Markdown

Cost Retail

Beginning Inventory $58,000 $100,000

Purchase Net $ 122,000 $ 200,000

Net Markups $ 10,345

Less Net Mardown ($26,135)

Total $ 180,000 $ 284,210

Cost to retail percentage = $ 180,000/ $ 284,210 × 100

Cost to retail percentage = 63.33 %

Therefore the cost-to-retail percentage are:

B1. Cost to retail percentage 60%

B2. Cost to retail percentage 65.73 %

B3. Cost to retail percentage 58 %

B4. Cost to retail percentage 63.33 %

8 0
2 years ago
Other questions:
  • Cynthia always buys whichever brand of paper towels is on sale, even if it is not the highest quality towel. her paper towel buy
    7·1 answer
  • Financial statement data at December 31 for Ecco Company are shown below. Cost of merchandise sold $552,500 Inventories: Beginni
    11·1 answer
  • Undesirable traits that a person should avoid when driving are
    12·2 answers
  • epreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment wa
    15·1 answer
  • For many of the working poor, medical insurance is out of the question. In 2014, approximately __________ of U.S. households wit
    12·1 answer
  • Which is the best choice to explain why human resource manager is so important to organizations
    13·1 answer
  • Shelby traveled to Mexico to a resort and took $100 in U.S. currency. When she exchanged it for pesos, she received A) 10.3 peso
    6·1 answer
  • Read the scenario:You are writing a research report on financial derivatives.
    5·1 answer
  • HELP QUICK! Scanners, copiers, webcams, flash drives, and printers are examples of
    14·2 answers
  • Read the graph. What is the equilibrium price?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!