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vfiekz [6]
3 years ago
13

The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is pri

ced to yield 12%, what is the bond's value today
Business
1 answer:
dybincka [34]3 years ago
7 0

Answer:

Bond Price  = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment,  annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.  

Coupon Payment (C) = 1000 * 10% = $100

Total periods remaining (n) = 3

r or YTM = 12%  

 Bond Price = 100 * [( 1 - (1+0.12)^-3) / 0.12]  + 1000 / (1+0.12)^3

Bond Price  = $951.9633746 rounded off to $951.96

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The following information is available for Splish Brothers Corp. for the year ended December 31, 2022. Other revenues and gains
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Answer:

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Explanation:

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Income Statement for the year ended December 31, 2022

Particulars/Description                               Amount ($)                    Amount ($)

Sales Calculation                                      

Sales Revenue                                                                                   747,000

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Net Sales                                                                                             734,800

Cost of Goods sold                                                                             (283,000)

Gross Profit                                                                                          451,800

Operating Expenses                                                                           (210,000)

Operational Income                                                                             241,800

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Income before Income Taxes                                                              260,400

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Net Income                                                                                        <u>   195,300</u>

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