Answer:
Bond Price = $616.6938765 rounded off to $616.69
Explanation:
To calculate the quote/price of the bond today, we will use the formula for the price of the bond. Assuming the bond is a semi annual bond, the semi coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1000 * 0.032 * 6/12 = $16
Total periods (n) = 16 * 2 = 32
r or YTM = 0.073 * 6/12 = 0.0365 or 3.65%
The formula to calculate the price of the bonds today is attached.
Bond Price = 16 * [( 1 - (1+0.0365)^-32) / 0.0365] + 1000 / (1+0.0365)^32
Bond Price = $616.6938765 rounded off to $616.69
Answer:
Effective capacity= 500 units
Explanation:
Effective capacity is defined as the maximum amount of product a manufacturing process can complete in a given period. Considering constraints such as delays, quality problems, and material handling.
Effective capacity is dependent on the design of the system. Design capacity is defined as the theoretical capacity of a system based on its design.
Effective capacity is calculated by dividing the actual capacity by efficiency.
Effective capacity= Actual Capacity/ Efficiency
Effective capacity= 400/0.8
Effective capacity= 500 units
Answer:
The statement is true.
Explanation:
The investor aversion to risk must be compensated with an increased return to make it more feasible.
If all bonds' return were the same then, investor will not invest on high risk bonds.
Company's will not issue the bond to yield higher than they can pay nor higher if they can do it the same as AAA. They do it as the only way to attract investment to his business.
The total cost of the consulting job = (Indirect cost per hour + Direct cost per hour ) * Total hours
The total cost of the consulting job = ( $11 per hour + $60 per hour ) * 20 hours
= $ 71 * 20 = $ 1,420
Here , the Indirect cost per hour is $ 11 ( 7,700 / 700 )
Direct cost per hour is $ 60
And the total number of hours billed is 20
