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NemiM [27]
3 years ago
5

A 3-year bond with 10% coupon rate and $1,000 face value yields 8% yield to maturity. Assuming annual coupon payment, calculate

the price of the bond.
Business
1 answer:
NNADVOKAT [17]3 years ago
6 0

Answer: $1051.51

Explanation:

Coupon rate = 10%

Face value = $1,000

Yield to maturity = 8%

Annual coupon will be:

= Face value × Coupon rate

= 1000 × 10%

= 100

Therefore, the price of bond will be:

= Annual coupon × Present value of annuity factor + $1000 × Present value of the discounting factor

= (100 × 2.5771) + (1000*0.7938)

= 257.71 + 793.8

= $1051.51

The price of the bond is $1051.51

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A product sells for $250 per unit, and its variable costs per unit are $181. The fixed costs are $430,000. If the firm wants to
brilliants [131]

Answer:

$6600

Explanation:

Given: Selling price= $250 per unit

          Variable cost= $181 per unit.

           Fixed cost= $430000.

           Expected Profit= $25400.

Let´s assume the number of units sold be "x".

Revenue (R) = 250\times x= \$250x

Cost of product (C)= \$ 181\times x+ \$ 430000

∴ Cost of product (C)= \$ 181x+ \$ 430000

Now, finding the number of unit sold.

Forming an equation for profit.

We know, Profit= Revenue-cost

⇒  \$ 25400= 250x- (181x+430000)

Opening parenthesis.

⇒ 25400= 250x- 181x- 430000

⇒ 25400= 69x- 430000

Adding both side by 430000

⇒ 455400= 69x

Dividing both side by 69

⇒ x= \frac{455400}{69}

∴ x= 6600 units

Hence, total number of units sold to earn $25400 is 6600 units.

     

           

6 0
3 years ago
ABC Company just started business in August. They made the following purchases during August: August 01 300 units $1,560 total c
anastassius [24]

Answer:

Inventory= $3,240

Explanation:

Giving the following information:

They made the following purchases during August:

August 01: 300 units $1,560 total cost

August 12: 400 units 2,340 total cost

August 24: 400 units 2,520 total cost (2520/400= $6.3)

August 30: 300 units 1,980 total cost (1980/300= $6.6)

A physical count on August 31 reveals that there are 500 units on hand.

FIFO (first-in, first-out)

Inventory= 300*6.6 + 200*6.3= $3,240

8 0
3 years ago
What type of pricing involves summing the total unit cost of providing a product or service and adding a specific amount to the
Leviafan [203]

Answer:

a COST-BASED PRICING METHOD

Explanation:

COST-BASED pricing method is the type of pricing which involves summing the total unit cost of providing the product or services and adding a specific amount to the cost to arrive at the price. These costs includes all production cost in making the product available to the market and selling expenses incurred then add the desired amount of profit that the company wants to attain to come up the unit selling price of the product.

7 0
3 years ago
Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is 0.875.
ss7ja [257]

The options provided are incorrect. The correct answer is given below

Answer:

New Portfolio beta = 1.125

Explanation:

The portfolio beta is the function of the weighted average of the individual stock betas that form up the portfolio. The formula to calculate the beta of a portfolio is as follows,

Portfolio beta = wA * Beta of A + wB * Beta of B +  ....  +  wN * Beta of N

Where,

  • w represents the weight of each stock in the portfolio

New Portfolio beta = 50000/200000 * 0.8  +  50000/200000 * 1  +  

50000/200000 * 1.2  +  50000/200000 * 1.5

New Portfolio beta = 1.125

6 0
3 years ago
An investor discovers that stock prices change drastically as a result of certain events. this finding is a violation of?
fiasKO [112]

An investor learns that specific events have a significant impact on stock values. The weak variant of the efficient market hypothesis is broken by this discovery. An investor is any individual or other entity (such as a business or mutual fund) who invests money with the hope of making a profit.

Investors depend on a variety of financial instruments to generate a rate of return and achieve crucial financial stock like saving for retirement, paying for a child's school, or just collecting more wealth over time. To achieve their financial goals and objectives, investors use a variety of financial instruments to produce a return.

To learn more about Investors, click here.

brainly.com/question/14283683

#SPJ4

8 0
2 years ago
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