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3 years ago

13

On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each

interest payment will be ________.

1 answer:

SIZIF [17.4K]3 years ago

6 0

Answer:

The correct answer is "$15,000".

Explanation:

Given:

Value,

= $250,000

Interest rate,

= 6%

The Interest Payment will be:

$Value\times Interest \ rate$

= $250,000\times 6$ %

= $15,000$ ($)

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Calculate the yield to maturity (YTM) for a one-year bond with a purchase price of $8,000, a face value of $10,000, and a curren

Mazyrski [523]

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yield to maturity YTM = 35%

Explanation:

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purchase price = $8,000

face value = $10,000

current yield = 10%

solution

we get here yield to maturity YTM

so first we get Annual Coupon by current yield that is express as

Current yield = annual coupon ÷ current price ..............1

put here value we get

Annual Coupon = 10 % × 8,000

Annual Coupon = $800

now we get YTM by purchase price that is

purchase price = Annual Coupon ÷ ( 1+YTM ) + face value ÷ ( 1+YTM ) .......2

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3 years ago

Charles lackey operates a bakery in Idaho, Falls Because of its excellent product location, demand has increased by 35% in the l

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Answer:

1) $0.27 per loaf of bread

2) $0.28 per loaf of bread

3) 3.7%

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current production = 1,800 loaves per month

current labor expense = $8 per hour

constant utility cost = $800

ingredients per loaf = $0.40

multi-factor productivity = total output / (labor + materials + overhead)

current multi-factor productivity = 1,800 loaves / ($5,120 + $800 + $720) = $0.27 per loaf of bread

new output level = 1,800 x 1.35 = 2,430 loaves

new multi-factor productivity = 2,430 loaves / ($6,912 + $800 + $972) = $0.28 per loaf of bread

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