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Semenov [28]
3 years ago
10

Suppose you consider buying a bond promising to pay you $25 one year from now and then the same amount every year through the fi

fth year (that is, you should receive a total of five coupon payments). At the time you receive your fifth payment, you will also receive the bond's face value of $5,000. Suppose the interest rate for a riskless bond is 7%. The most you would be willing to pay for this bond is $ . Give your answer to two decimals.
Business
1 answer:
Archy [21]3 years ago
6 0

Answer:

$3,667.44

Explanation:

The amount you would be willing to pay today can be determined by finding the present value of the cash flows

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 4 = $25

Cash flow in year 5 = $25 + $5000

I = 7%

Present value = $3,667.44

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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Trek Cycles makes two products: X-1 and X-2. It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor h
Vera_Pavlovna [14]

Answer:

Predetermined manufacturing overhead rate= $2.15 per direct labor hour

Explanation:

Giving the following information:

It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.

Total overhead= 225,000 + 149,960=  $374,960

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

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

Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)

Predetermined manufacturing overhead rate= $2.15 per direct labor hour

6 0
3 years ago
How would a business person be most likely to use a seed capital
Anarel [89]
A business person would most likely use seed capital to start a new business or use it to contribute financially to the business. 
7 0
3 years ago
Springer Products manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists f
Zina [86]

Answer:

Model Y

Explanation:

Calculation for the which model is the most profitable to produce

Using this formula

Most profitable to produce=Selling price-Direct materials-Direct labor-Variable support costs

Let plug in the formula

Model X $52 - $8 - $16- $5 = $23

Model Y $60 - $8- $16 - $10 = $26 Most profitable

Model Z $74- $8 - $33 - $10 = $24

Therefore the model that is the most profitable to produce is MODEL Y because it has the highest amount of $26

5 0
3 years ago
In an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expe
N76 [4]

Answer:

$735 billion

Explanation:

Calculation to determine the national saving

Using this formula

National saving =Gross domestic product-Consumption expenditure-Government expenditure

Let plug in the formula

National saving=$2,450 billion-$1,390 billion- $325 billion

National saving=$735 billion

Therefore the national saving is $735 billion

7 0
3 years ago
Job specifications can be defined as: a. planned sequences of jobs through which employees may advance within an organization. b
Alona [7]

Answer:

Option d would be the correct approach.

Explanation:

  • The organized database of the important tasks required in carrying out a task that has been extrapolated from such a job description and used in job classification and assessment and personnel policies as well as positioning.
  • This usually includes tasks, intent, obligations, nature including employment conditions of a position including the description of the position, as well as the identity or description of the individual the input data to.

Many examples do not apply to the subject being discussed. So option d is indeed the right one.

4 0
3 years ago
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