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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

5 0

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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A firm purchases goods on credit worth $150. The same firm pays off $100 in old credit purchases. An investment is made via the

Oxana [17]

Answer:

A. $50 increase

Explanation:

Basically there are three types of activities:

1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.

2. Investing activities: It records those activities which include purchase and sale of the fixed assets

3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.

The change in net cash provided by operation is shown below:

= Investment made - purchased goods on credit - paid amount

= $300 - $150 - $100

= $50

4 0

3 years ago

The following monthly data are available for Coronado Industries. which produces only one product: Selling price per unit, $38;

In-s [12.5K]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Selling price per unit= $38

Unit variable expenses= $14

Total fixed expenses= $42,000

Actual sales for June= 3000 units.

First, we need to calculate the break-even point in dollar using the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 42,000/ [(38 - 14)/38]

Break-even point (dollars)= $66,500

Now, we can calculate the margin of safety in dollars:

Margin of safety= (current sales level - break-even point)

Margin of safety= (3,000*38 - 66,500)

Margin of safety= (114,000 - 66,500)

Margin of safety= $47,500

5 0

3 years ago

You decide to purchase an equal number of shares of stocks of firms to create a portfolio. If you wished to construct an index t

Bond [772]

Answer:

Price weighted index

Explanation:

A price weighted index is an index used in stocks where each company that is part of the index makes up a fraction of the total, and is proportional to its price per share.

Higher weight is given to sticks that have higher prices.

Rice weighted index is a good way to track track portfolio performance that best match for your portfolio.

3 0

3 years ago

Given the following financial statements for GM, the return on assets is ______ percent? (Write your answer as a percentage, rou

shutvik [7]

Answer: 2

Explanation: see attachment

8 0

3 years ago

On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $168 million. The bonds were priced at $147.2 million

bagirrra123 [75]

Answer:

(A)Balance sheet

Bonds at September 30th

Bonds Payable 168,000,000

Discount on Bonds (20,152,000)

Interest Payable 12,600,000

Net 160,448,000

(B) Income Statment

Interest Expense 13,248,000

(C)Cash Flow Statment

Financing

Cash generate for Bonds issued 147,200,000

Explanation:

Jan 1st, 2018 168,000,000 face value

Issed at 147.2M for an effective rate of 12%

Discount of 20.8M

Bonds at September 30th

accrued interest expense: 147,200,000 x 12% x 9/12 = 13,248,000

interest payable: 168,000,000 x 10% x 9/12 = 12,600,000

amortization of Discount: 648,000

7 0

3 years ago