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3 years ago

what is the quote of a 16 year, 3.2 semiannual coupon bond with 1,000 face value if the yield to maturity is 7.3 g

Business

1 answer:

murzikaleks [220]3 years ago

8 0

Answer:

Bond Price = $616.6938765 rounded off to $616.69

Explanation:

To calculate the quote/price of the bond today, we will use the formula for the price of the bond. Assuming the bond is a semi annual bond, the semi coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 1000 * 0.032 * 6/12 = $16

Total periods (n) = 16 * 2 = 32

r or YTM = 0.073 * 6/12 = 0.0365 or 3.65%

The formula to calculate the price of the bonds today is attached.

Bond Price = 16 * [( 1 - (1+0.0365)^-32) / 0.0365] + 1000 / (1+0.0365)^32

Bond Price = $616.6938765 rounded off to $616.69

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Transactions Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equip

agasfer [191]

Answer:

Oct 1

Rent expense Dr. $2800

Cash Cr. $2800

(To record entry for payment of rent for month)

Oct 3

Advertising expenses Dr. $525

Cash Cr. $525

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Oct 5

Supplies Dr. $1250

Cash Cr. $1250

(To record entry for purchase of supplies)

Oct 6

Office equipment Dr. $9300

Accounts Payable Cr. $9300

(To record purchase of office equipment on account)

Oct 10

Cash Dr. $16600

Accounts Receivable Cr. $16600

(To record cash received from customers on account)

Oct 15

Accounts payable Dr. $3720

Cash Cr. $3720

(To record payment made to creditors)

Oct 27

Miscellaneous expenses Dr. $590

Cash Cr. $590

(To record repair expense of office equipment)

Oct 30

Telephone expense Dr. $275

Cash Cr. $275

(To record payment made for telephone bill)

Oct 31

Accounts receivables Dr. $50160

Service fees Cr. $50160

(To record fees earned )

Oct 31

Utility expense Dr. $830

Cash CR $830

(To record payment made for electricity bill)

Oct 31

Personal use Dr. $1700

Cash Cr. $1700

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3 0

3 years ago

Suppose you enter into a 9-month long forward contract on a non-dividend-paying stock when the stock price is S0 = $125 and the

Vladimir79 [104]

Answer:

Future Price

F0: 126.89

F3: 113.13

F4: 113.41

Value of the contract:

a) zero (by definition)

b) -13

c) -13

Explanation:

forward price:

$F = S (1+r)^{n}$

being S the spot rate

time 9 months and

rate 2% continuous componding

As the rate is continuous we calculate using the e number instead:

$F = S e^{rn} +cost$

$F = 125 e^{0.02 \times 9/12}$

F = 125 x 1.015113065

F = 126.8891331 = 126.89

3th month into the contract:

$F = 112 e^{0.02 \times 6/12}$

F = 113.1256187 = 113.13

4th month

$F = 112 e^{0.025 \times 5/12}$

F = 113.4087866 = 113.41

value of the contract

at third month:

Vt = St - F0

Vt = 112 - 125 = -13

at fourth month

Vt = 112 - 125 = -13

3 0

3 years ago

Which of the following is the correct mathematical representation of direct labor rate variance (LRV)?

fiasKO [112]

Answer: not in any option

Explanation: Labour rate variance = (standard Labour hour - actual Labour hour) × actual Labour hour.

6 0

3 years ago

Kurt's Adventures, Inc. stock is quite cyclical. In a boom economy, the stock is expected to return 30% in comparison to 12% in

MAXImum [283]

Answer:

15.83%

Explanation:

Calculation to determine is the standard deviation of the returns on Kurt’s Adventures, Inc. stock

First step is to determine l E(r)

E(r) = (.30 *.30) + (.55 *.12) + (.15 *-.20)

E(r)= .09 + .066 -.03

E(r)= .126

Second step is to determine Var

Var = .30 *(.30 -.126)^2 + .55 *(.12 -.126)^2 + .15 *(-.20 -.126)

Var=0090828 +.0000198 + .0159414

Var= .025044

Now let determine the Std dev

Std dev = √.025044 = .15825

Std dev= 15.83 percent

Therefore the standard deviation of the returns on Kurt’s Adventures, Inc. stock.is 15.83 percent

6 0

3 years ago

When a customized product is manufactured separately, it is referred to as ____ production:multiple choicea processa job ordera

storchak [24]

When a customized product is manufactured separately, it is referred to as Job order production.

<h3>Job Order Production</h3>

Manufacturing bespoke or distinctive goods for specific clients is known as job order production.
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Custom products made in bulk are the focus of many producers. Customers bring designs or products in mind for custom products, which the manufacturer develops and produces.
Print shops and studios are excellent examples of custom manufacturers. With a design for 100 graduation invitations, a consumer might go to his neighborhood print shop.

To learn more about Job Order Production refer to:

brainly.com/question/14311206

#SPJ4

5 0

2 years ago