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Alona [7]
3 years ago
6

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 9.40%. (Do not round int

ermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
a. What is the bondâs yield to maturity if the bond is selling for $1,040?
Yield to maturity %
b. What is the bondâs yield to maturity if the bond is selling for $1,000?
Yield to maturity %
c. What is the bondâs yield to maturity if the bond is selling for $1,240?
Yield to maturity %
Business
1 answer:
pentagon [3]3 years ago
4 0

Answer and Explanation:

The computation of the yield to maturity is shown below:

a. When the bond sale price is $1,040

Given that

FV = $1,000

PV = $1,040

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 8.9630%

b. When the bond sale price is $1,000

Given that

FV = $1,000

PV = $1,000

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 9.4%

c. When the bond sale price is $1,240

Given that

FV = $1,000

PV = $1,240

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 7.1144%

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Aleonysh [2.5K]

Answer:

d. Thailand should export rice and import cell phones

Explanation:

Analyzing the question, it is correct to say that Thailand should export rice and import cell phones.

To understand why this statement is correct, we need to understand the concept of comparative advantage and absolute advantage.

The comparative advantage occurs when a country has great efficiency in producing a certain good, that is, the production is specialized and therefore advantageous in relation to another country. So it is correct to say that Thailand, having a comparative advantage in rice, should export rice to achieve greater economic advantage.

The absolute advantage, on the other hand, corresponds to the production of a good with lower costs than another country, but Thailand should import cell phones because Indonesia has a comparative advantage in cell phones, which makes it more competitive than Thailand in this segment.

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2 years ago
Hester's manufacturing software company is doing better than it ever has and just a year ago it was floundering. Prior to a year
nydimaria [60]

Permanent team structure was Hester now a part of under the new ownership.

Explanation:

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Permanent teams are workplace units structured like a formal organisation. The team brings together staff from all fields of work, such as the components supply and logistics for an automotive plant, concentrated on a particular task or project.

3 0
3 years ago
aylor & Edwards Inc. manufactures television sets. Last month, direct materials (electronic components, etc.) costing $550,0
fenix001 [56]

Answer:

Unitary prime cost= $170.24

Explanation:

Giving the following information:

Last month, direct materials (electronic components, etc.) costing $550,000 were put into production.

Direct labor= $880,000.

Manufacturing overhead equaled $495,000

The company manufactured 8,400 television sets during the month.

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Octavia has received an email from a customer asking her a question about a product unfortunately Octavia doesn't know the answe
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Octavia should tell the customer that she doesn’t know the answer right now, but she will try to figure it out as soon as possible, and it may take a few days.

Another great option is for Octavia to ask a coworker right away who may know the answer to the question.

6 0
3 years ago
Read 2 more answers
Monette Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of
hoa [83]

Answer and Explanation:

The preparation of cash collection budget is shown below:-

                            Cash Collection Budget

               For the month of January through March

                                   January         February         March          Quarter

Cash sales                   $43,500      $37,500           $58,500      $139,500

Collection on Credit sales

20% month of sale       $20,300      $17,500        $27,300      $65,100

40% month after            $33,600     $40,600       $35,000      $109,200

24% two months after    $17,640        $20,160        $24,360        $62,160

Total Cash collection      $115,040      $115,760      $145,160        $375,960

Working Note 1

                   November        December       January     February     March

Total Sales   $105,000          $120,000       $145,000    $125,000   $195,000

Cash sales   $31,500            $36,000       $43,500     $37,500     $58,500

Credit sales   $73,500            $84,000       $101,500      $87,500     $136,500

Credit sales is 70% of Total sales every month

Cash Sales is 30% of Total sales every month

Working Note 2

                            January        February       March         Quarter

Cash sales            $43,500      $37,500      $58,500        $139,500

Cash collection from credit sales of

November            $17,640                                                 $17,640

December          $33,600      $20,160                               $53,760

January                $20,300     $40,600        $24,360         $85,260

February                                   $17,500       $35,000         $52,500

March                                                          $27,300            $27,300

Total collections  $115,040     $115,760      $145,160           $375,960

6 0
3 years ago
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