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zalisa [80]
3 years ago
10

Q1: Grohl Co. issued 11-year bonds a year ago at a coupon rate of 6.5 percent. The bonds make semiannual payments. If the YTM on

these bonds is 8.2 percent, what is the current bond price? Q2 Ashes Divide Corporation has bonds on the market with 15 years to maturity, a YTM of 7.2 percent and a current price of $856. The bonds make semiannual payments. What must the coupon rate be on these bonds? Q3: Both Bond Sam and Bond Dave have 10 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 4 years to maturity, whereas Bond Dave has 18 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Band Sam? Of Bond Dave? If rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of Bond Sam be then? Of Bond Dave? Illustrate your answers by graphing bond prices versus YTM. What does this problem tell you about the interest rate risk of longer- term bonds? Q4: Bond is a 5 percent coupon bond. Bond Kis a 14 percent coupon bond. Both bonds have ten years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 3 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 3 percent instead? What does this problem tell you about the interest rate risk of lower-coupon bonds? Q5: River Corp. has 8.2 percent coupon bonds making annual payments with a YTM of 7.3 percent. The current yield on these bonds is 7.6 percent. How many years do these bonds have left until they mature?​
Business
1 answer:
WINSTONCH [101]3 years ago
6 0

Answer:

Explanation:

N = 4 (5-year bond - 1 year (ago))*2 = 8

I% = YMT= 8/2 = 4

PMT = (1,000)(.07) = 70/2 = 35

FV=1,000

Calculating PV, PV=966.34

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A company purchased new furniture at a cost of $19,000 on September 30. The furniture is estimated to have a useful life of 5 ye
OLga [1]

Answer: The depreciation expense that will be recorded for the furniture for the first year ended December 31 is $825.

Explanation: Straight-line mwthod of depreciation is:

(Acquisition value minus salvage value) / No of years

Per the question, the acquistion value of the new furniture is $19,000 while the salvage value is $2,500. The number of years is 5 years.

Then yearly depreciation would be <u>($19,000 - $2,500) / 5 years = $3,300</u>.

Note that the furniture was purchased on September 30. To arrive at the depreciation expense that will be recorded as at December 31, you need to pro rate the yearly depreciation of $3,300.

September 30 to Decemer 31 is 3 months. <u>So the total depreciation expense will be $3,300 * 3 / 12 = $825.</u>

<u />

6 0
3 years ago
Which of the following statements is most​ correct? A. KSFs are often​ necessary, but not sufficient for competitive advantage.B
anzhelika [568]

Answer:

A.  KSFs are often necessary, but not sufficient for competitive advantage.

Explanation:

KSF

Key Success Factors (KSFs) represent business functions, practices or business activities as defined or seen by the customers or the market as being important or crucial to the development of consumer/business relationship.

KSFs represent areas organisations are to attend to based on the views of the market in order to achieve their goals. It could be in form strengths to maximize, weaknesses to address, aspects to take advantage of among others.

It becomes obvious that although important (from the view of the market or consumers who patronize the business), a business must makes its own due diligence in form of SWOT analysis among others to have the required competitive advantage.

4 0
3 years ago
How much would ten dollars in american money be worth in india's currency?
jarptica [38.1K]
20 I think that is not my strong suit though
7 0
3 years ago
A financial services firm routinely processes a large volume of account change requests. A Lean Six Sigma team wants to understa
Harrizon [31]

Answer:

E) 1920

Explanation:

The computation of  the maximum items in process is shown below:

=  Number of maximum target cycle time ×  normal processing rate per minute × number of minutes in one hour

= 16 hours × 2 × 60 minutes

= 1,920

Simple we multiply the all items which are given in the question, so that the accurate value can come i.e maximum target cycle time, normal processing rate per minute and the number of minutes in one hour

3 0
3 years ago
Detailed knowledge about the production and distribution of most products
Mariulka [41]
B. is spread among many people who may or may not even know each other<span>

</span><span>Hope this helps!</span>
3 0
3 years ago
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