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zzz [600]
3 years ago
9

A corporate bond with a 6% coupon (paid semiannually) has a yield to maturity of 7.5%. The bond matures in 20 years but is calla

ble at $1050 in ten years. The maturity value is par. Calculate the bond’s yield to call. % terms w/o $ sign. (HINT: Find the current price and then solve for YTC.)
Business
1 answer:
Zina [86]3 years ago
8 0

Answer:

Yield to Call = 8.66%

Explanation:

The computation of the yield to call is shown below:

First determine Current Price of Bond,

PV = [FV = 1,000, PMT = 30, N = 40, I = 0.075 ÷2]

PV = $845.87

Callable Price = $1,050

Now

Calculating Yield to Call,

I = [PV = -845.87, FV = 1,050, N = 20, PMT = 30]

I = 8.66%

Yield to Call = 8.66%

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Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford Furnishings uses a job order cost
arsen [322]

Answer:

A.Dr Materials 504,800

Cr Account payable 504,800

B.Dr Work in process 487,300

Dr Factory overhead 4500

Cr Materials 491,800

C.Fabric Ployester filling Lumber Glue

$29,400 $16,100 $30,400 $6,500

Explanation:

Entries for Materials Kingsford Furnishings

a) Journal entry

Fabric $96,600

Polyester filling 134,300

Lumber 264,700

Glue 9,200

Total 504,800

Dr Materials 504,800

Cr Account payable 504,800

b) Journal entry

Dr Work in process 487,300

(491,800-4500)

Dr Factory overhead 4500

Cr Materials 491,800

c) Calculation of the ending balance

Fabric Ployester filling Lumber Glue

Beginning balance

$19,100 5,700 42,800 1,800

Purchase

$96,600 134,300 264,700 9,200

Used

-$86,300 -$123,900 -$277,100 -$4,500

Ending balance

$29,400 $16,100 $30,400 $6,500

3 0
3 years ago
On December 31, the Income Summary account of Madison Company has a debit balance of $111,000 after revenue of $117,000 and expe
loris [4]

Answer:

a) See the image attached for the sheet of closing entry

b) New balance = (174000-111000-12000) = 51000

8 0
3 years ago
Which best describes the main role of the three major credit reporting agencies?.
kaheart [24]

The best three main roles of major credit reporting agencies are:

  • Compile consumer credit
  • Loan information and
  • Provide it to lenders and businesses.

<h3>What is a credit reporting agency?</h3>

A credit reporting agency is a company that keeps track of people's and companies' credit histories. They get information from creditors and other sources, which they put into a credit report, which incorporates a credit score when it's released.

The best three main roles of major credit reporting agencies are:

  • Compile consumer credit
  • Loan information and
  • Provide it to lenders and businesses.

Learn more about credit reporting agencies here:

brainly.com/question/9913263

3 0
2 years ago
Which is true about what a customer typically expects from a support technician?
vodomira [7]
<span>A customer expects a support technician to be knowledgeable, patient, and friendly. The support technician must be knowledgeable to the degree that they solve the issue at hand, but can also give basic information to a customer.</span>
3 0
2 years ago
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou
Masteriza [31]

Answer:

The incremental cost is ($10,360)

Explanation:

<u>Analysis of total cost over the 5 year period</u>

                                                      Retain Old Machine   Buy New Machine

<em>Variable / Incremental Operating</em>

<em>Costs</em>

Old Machine                                          124,750    

New Machine                                                                              97,800

<em>Old Machine Book Value</em>

Retain: Annual depreciation                    8,430                      

Buy : Lump sum written off                                                         8,430

Old Machine Disposal                                                                (8,490)

Purchase Cost of New Machine                                               25,080

Total Cost                                               133,180                       122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

8 0
3 years ago
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