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Andrew [12]
4 years ago
11

What is the expected rate of return on a bond that pays a coupon rate of 9% paid semi - annually, has a par value of $1,000, mat

ures in five years, and is currently selling for $1071? a. 8.40% b. 7.28% c. 3.64% d. 4.21%
Business
1 answer:
spayn [35]4 years ago
8 0

Answer:

b. 7.28%

Explanation:

This question is asking for the yield to maturity(YTM) of the bond. You can solve this using a financial calculator with the inputs below. Additionally, adjust the coupon payment(PMT) and time to maturity(N) to semiannual basis.

Time to maturity; N = 5*2 = 10

Face value; FV = 1000

Price of bond; PV = -1071

Semiannual coupon payment; PMT = (9%/2) *1000 = 45

then compute semiannual interest rate; CPT I/Y = 3.64%

Next, convert the semiannual rate to annual rate(YTM) = 3.64% *2

YTM = 7.28%

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Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary
forsale [732]

Answer:

deferred income tax benefit during 2018:     6,700

deferred income tax liability ending balance 27,400

Explanation:

beginning deferred tax laibility 34,000

this will change to 21,000 for the tax rate change

(100,000 x 21% = 21,000)

thus there is a decrease of 13,000 in the tax liablity

Then:

book income                    400,000

temporary differenc(net): (30,000)

Taxable income               370,000

30,000 x 21% = 6,300 additional deferred tax expense

13,000 benefit - 6,300 deferred tax expense = 6.700 benefit

5 0
3 years ago
In​ ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.
STatiana [176]

Answer:

traditional goal setting

Explanation:

This is traditional goal setting because the goals flow from the top down. Each organisational area then incorporates them from the top down.

3 0
3 years ago
A company had cash flows during the year as follows: $50,000 received from short-term borrowing, $10,000 paid to purchase treasu
tankabanditka [31]

Answer:

<em>Net cash flow=$25000</em>

Explanation:

<em>The net cash flow from financing activities includes that entails any or a combination of the following; issuance and redemption of stocks , issuance and redemption of debts and payment of interest and/or dividend, and receipt of dividend and or interest.</em>

<em>The net cash flows= 50,000 -10,000 -15,000 = $25000</em>

<em>Kindly note that the purchase of plants assets is not a financing activity but investment</em>

6 0
3 years ago
Read 2 more answers
1. how many members participate in h&amp;m’s loyalty program worldwide?
amm1812

Answer:

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Explanation:

hope it can help

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What is the key to success?
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Honesty and working hard.
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