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3 years ago

Consider a 10-year bond with a face value of $1,000 that has a coupon rate of 5.5%, with semiannual payments.

Business

1 answer:

DiKsa [7]3 years ago

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Explanation:

It all depends on the market conventions and the bond documentation.

1 In most countries, traditionally fixed coupon bonds don’t have their coupons day counted. So if the frequency is twice a year, and the annual coupon rate is 5.5%, then each semi-annual coupon is exactly 5.5/2=2.75%. However a lot of other instruments, e.g. fixed swap legs, loans, and bonds that are really “loan participation notes”, etc. usually have their fixed coupons day counted. So each coupon amount will vary a little depending on the number of days in the accrual period, weekends and holidays.

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If a company uses LIFO, a LIFO liquidation causes a company's income taxes to increase:_______

olasank [31]

Answer: a. When inventory purchase costs are rising.

Explanation:

Last In First Out is an inventory stock valuation method where newer inventory is sold first and older inventory are sold last.

When a LIFO liquidation occurs, it means that the company has sold off its new stock and are now selling the older one.

This will lead them to have a lower cost of goods sold as the older stock is usually cheaper. If Inventory purchase costs are increasing in the market, then sales prices will have to increase as well. The company will sell at this new price but will still have that lower cost of goods sold.

This means that they would have more profits as a result which will lead to more taxes being charged on them.

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3 years ago

Exercise 6A-5 Least-Squares Regression [LO6-11][The following information applies to the questions displayed below.] George Calo

sashaice [31]

Answer:

George Caloz & Freres

The High - Low method can be used to solve:

The Highest Units and cost = 8 at $25

The Lowest Units and cost = 2 at $16

The difference = 6 units at $9

a) Variable cost = $9/6 = $1.5 per unit

b) Fixed cost at Highest unit produced, is then:

8 x $1.5 + Fixed cost = $25

Fixed cost = $25 = $12 (8 x $1.5) = $13

Check:

At lowest units of production, fixed cost:

Fixed cost = $16 - $3(2x $1.5) = $13

c) If the company processes 5 units next week, the expected total etching costs will be $20.50 (5x $1.5 + $13)

Explanation:

a) Arrangement of the cost data:

Week Units Total Etching Cost

1 4 $18

2 3 $17

3 8 $25

4 6 $20

5 7 $24

6 2 $16

30 $120

b) The High - Low can be used to work out the variable and fixed elements of cost. This method extracts the differences in units and cost to determine the variable cost per unit and the fixed cost.

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3 years ago

A friend comes to you seeking advice. He got into trouble at work for not being a team player. He really likes his job and isn’t

Oksanka [162]

Answer:

well he should apologize to his boss and everyone he wasn't a team player to because someone must have told his boss, and then proceed to say he with work with others better and mean it. hope this helps your "friend"

Explanation:

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3 years ago

Page(s) 165-166 5.3. Why do taxes create deadweight loss in otherwise efficient markets? How would the consumer notice if the go

swat32

Answer:

Explanation:

8 0

3 years ago

Read 2 more answers

In which document can the project manager (pm) find guidance for implementing earned value management (evm) contract management

Hoochie [10]

Guidance for implementing earned value management contract can be obtained from EARNED VALUE MANAGEMENT IMPLEMENTATION GUIDE.
Earned value management is a project management method for quantifying project performance. <span />

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3 years ago