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Bond [772]
3 years ago
6

Your grandfather wants to determine the value of his bond portfolio and asks you for help. Find the current market values of the

components of your grandfather’s portfolio. (a) 80 bonds with a $1,000 face value and a coupon rate of 7.6%/year. These bonds have 11 years left to maturity and pay coupons on a semi‐annual basis. The YTM of these bonds is 8.8%/year. What is the total market value of these 80 bonds? (3 pts.) (b) 160 zero‐coupon bonds with a $1,000 face value, 9 years to maturity, and a YTM of 7.7%/year
Business
1 answer:
Tomtit [17]3 years ago
8 0

Answer:

a) $73,320.80

b) $82,068.80

Explanation:

Current market value of bonds:

PV of face value = $1,000 / (1 + 4.4%)²² = $387.78

PV of coupon payments = $38 x 13.91402(PV annuity factor, 4.4%, 22 periods) = $528.73

Market price = $916.51

$916.51 x 80 = $73,320.80

Current market value of zero coupon bonds:

PV of face value = $1,000 / (1 + 7.7%)⁹ = $512.93

$512.93 x 160 = $82,068.80

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dolphi86 [110]

Contribution for Standard is $30 per unit and Supreme is $60 per unit, Thus if Fixed expenses are first divided between the two products on the basis of Contribution per unit, It can be calculated as below:

Fixed Expense Bifurcated on basis of Contribution per unit= 30:60

Which Comes to 1:2

Thus it will be bifurcated as $1200000 for Supreme and $600000 for Standard

Thus for Standard to break even it Requires to Sell the below no of units:

Break Even Point in units=\frac{Fixed Expense}{Contribution per unit}

Break Even Point in units=\frac{600000}{30}

Break even points in units=20000 units

7 0
2 years ago
Concentration ratios measure the Group of answer choices geographic location of the largest corporations in each industry. degre
nika2105 [10]

Answer:

percentage of total industry sales accounted for by the largest firms in the industry.

Explanation:

The concentration ratio calculated the market share percentage for an industry and the same is held by the larger firms inside the industry. Also it determined the total output that could be generated from the number of firms in the industry

Therefore as per the given options, the above options should be considered correct

3 0
3 years ago
"Which type of accounts" the ____ on an investment is the investors gain or loss on the investment over a period of time.
miss Akunina [59]
The rate of return on an investment is the investors gain or loss on the investment over a period of time. 
4 0
3 years ago
Read 2 more answers
When Padgett Properties LLC was formed, Nova contributed land (value of $358,500 and basis of $89,625) and $179,250 cash, and Os
lawyer [7]

Answer:Amount of Nova and Oscar's gain=$492,937.50

Explanation:

a)According to  Land recorded for   § 704(b) book capital account purposes, Land is  recorded at fair market value. With this, the Padgett properties should record the land at $358,500

b)From the question, it is given that the  basis of land is  $89,625. Therefore, the Padgett Properties LLC's tax basis in the land is $89,625.

c)Amount of Nova and Oscar's gain.

Fair market value of Land         $358,500

Basis of land                                  $89,625  

total                                              $ 448,125

but Gain =  Selling price of land - Fair value of Land  x interest in partnership profits and capital  

= $537,750 - ($358,500+$89,625 )

=($537,750 - $448,125 )  x 50% =$44,812.50

Total gain                   $448,125 + $44,812.50 =$492,937.50

4 0
2 years ago
Copy equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $8,000 and
sergeinik [125]

Answer:

Results are below.

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<u>The depreciable cost is the result of deducting from the purchase price the salvage value:</u>

<u></u>

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<u>The depreciable rate is the depreciation that the asset suffers in one year express as a percentage:</u>

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<u>Finally, the units of production depreciation for the first year:</u>

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Annual depreciation= (48,000/1,000,000)*240,000

Annual depreciation= 0.048*240,000

Annual depreciation= $11,520

5 0
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