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motikmotik
3 years ago
13

Lycan, Inc., has 7.9 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and h

ave a par value of $1,000. If the YTM on these bonds is 9.9 percent, what is the current bond price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current bond price
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer:

$912.68

Explanation:

Particulars                      Time  PVF at 9.9%   Amount   Present Value

Cash Flows (Interest) 1.00        0.9099       79.00             71.88

Cash Flows (Interest)    2.00        0.8280       79.00             65.41

Cash Flows (Interest)    3.00        0.7534        79.00             59.52

Cash Flows (Interest)    4.00        0.6855        79.00            54.15

Cash Flows (Interest)    5.00        0.6238        79.00            49.28

Cash Flows (Interest)    6.00        0.5676        79.00            44.84

Cash flows (Maturity)    6.00        0.5676      1,000.00         <u>567.60</u>

Intrinsic Value of Bond or Current Bond Price                  $<u>912.68</u>

Thus, the Current bond price is $912.68

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Answer:

In a command economy an authority such as the government, governmental agency, or central planners decide what to produce, how to produce and to whom goods and services will be allocated.

4 0
3 years ago
The financial services department of your company offers a competitive leadership program. After screening and interviewing all
zmey [24]

Answer:

The correct answer is: Formal.  

Explanation:

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3 years ago
During the current year, the Jules Company incurred the following product costs:Direct materials used in production $250,000Dire
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Answer:

Option (D) is correct.

Explanation:

Given that,

Direct materials used in production = $250,000

Direct labor = $185,000

Manufacturing overhead = $245,500

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Ending Work in Process Inventory = $30,000

Cost of finished goods manufactured for the year:

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= $250,000 + $185,000 + $245,500 + $20,000 - $30,000

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3 years ago
Edwards Company manufactures low-cost wooden chairs and uses activity-based costing. The following information is for the month
Airida [17]

Answer:

$37.80

Explanation:

Particulars                                           Amount       Calculations

Direct materials                                    $7.00

Handling                                               $2.80          ($3,500/5,000*4 parts)

Assembling                                           $9.60          ($12,000/5,000*4 parts)

Packaging                                             <u>$18.40 </u>        ($5,750/1,250*4 parts)

Total manufacturing cost per chair   <u>$37.80</u>

3 0
3 years ago
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