Like the capital asset pricing model, the bond yield plus risk premium (BYPRP) approach is useful for _________

Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 a

enot [183]

Answer:

Monthly payment is $840.12

Explanation:

we are given: $70000 which is the present value of the loan Pv

12% compounded monthly where the interest rate is adjusted to monthly where i = 12%/12

the period in which the loan will be repaid in 15years which contain 15x12 = 180 monthly payments which is n

we want to solve for C the monthly loan repayments on the formula for present value as we are looking for future periodic payments.

Pv = C[((1- (1+i)^-n)/i] thereafter we substitute the above mentioned values and soolve for C.

$70000= C[((1-(1+(12%/12))^-180))/(12%/12)] then compute the part that multiplies C in brackets and divide by it both sides.

$70000/83.32166399 = C then you get the monthly loan repayments

C = $840.12 which is the monthly repayments of the $70000 loan.

3 0

3 years ago

Those who exhibit similarities in occupations, education, and income level, and have similar tastes in style and activities ar

juin [17]

Answer: The correct answer is "B. social class".

Explanation: Those who exhibit similarities in occupations, education, and income level, and have similar tastes in style and activities are members of a social class.

In a society the general range of people can be defined as the social class. Within these classes people tend to be similar in terms of occupation, income level, tastes, education, etc.

8 0

3 years ago

Stech Co. is issuing $9 million 12% bonds in a private placement on July 1, 2017. Each $1,000 bond pays interest semi-annually o

STALIN [3.7K]

Answer:

Expected selling price =$ 1,271.81

Explanation:

The price of a bond is the present value (PV) of the future cash inflows expected from the bond discounted using the yield to maturity.

These cash flows include interest payment and redemption value

The price of the bond can be calculated as follows:

Step 1

PV of interest payment

coupon rate - 12%, yield - 8%, years to maturity- 10 years

Semi-annual coupon rate = 12%/2 = 6%

Semi-annual Interest payment =( 6%×$1000)= $60

Semi annual yield = 8%/2 = 4%

PV of interest payment

= A ×(1- (1+r)^(-n))/r

A- interest payment, r- yield - 4%, n- no of periods- 2 × 10 = 20periods

= 60× (1-(1.04)^(-10×2))/0.04)

= 60× 13.59032634

=$815.41

Step 2

PV of redemption value (RV)

PV = RV × (1+r)^(-n)

RV - redemption value- $1000, n- 2×10 r- 4%

= 1,000 × (1+0.04)^(-2×10)

= $456.38

Step 3

Price of bond = PV of interest payment + PV of RV

= $815.41 + $456.38

= $ 1,271.81

Expected selling price =$ 1,271.81

5 0

3 years ago

Work in process, November 1st Started in production during November Work in process, November 30th Units 16,900 109,000 24,900 T

NemiM [27]

Answer:

Explanation:

Opening units 16900

Started 109000

125900

Transffered 101000

Closing 24900

Production and cost table using Weighted average method

Cost Opening current Total Complete WIP Equivalen Cost

Head Cost Cost Cost Units Units Units PerUnit

Mat. 55,460 477,000 532,460 70,000 22,410 92,410 5.76

Lab. 21,220 191,880 213,100 70,000 7,470 77,470 2.75

MOH 16,140 400,160 416,300 70,000 7,470 77,470 5.37

Complete 70,000 8.51 595,887

Closing Wip

Material 22,410 5.76 129,125

Labour 7,470 2.75 20,548

MOH 7,470 5.3737 40,141

189,814

4 0

3 years ago

In the manufacture of 9,400 units of a product, direct materials cost incurred was $174,900, direct labor cost incurred was $109

stiv31 [10]

Answer:

$154,000

Explanation:

Calculation to determine the total conversion cost

Using this formula

Total conversion cost=Direct labor cost incurred

+Applied factory overhead

Let plug in the formula

Total conversion cost =$109,800+$44,200

Total conversion cost=$154,000

Therefore Total conversion cost is $154,000

5 0

3 years ago

Like the capital asset pricing model, the bond yield plus risk premium (BYPRP) approach is useful for __________.