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mestny [16]
3 years ago
14

A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivale

nt and effective annual yield to maturity of the bond if the bond price is $950.
Business
1 answer:
kipiarov [429]3 years ago
7 0

Answer:

The answer is 4.26 percent

Explanation:

This is a semiannual paying coupon.

N(Number of periods) = 40 periods ( 20 years x 2)

I/Y(Yield to maturity) = ???

PV(present value or market price) = $950

PMT( coupon payment) = $40 ( [8 percent÷ 2] x $1,000)

FV( Future value or par value) = $1,000.

We are using a Financial calculator for this.

N= 40; PMT = 40; FV= $1,000; PV= -950 CPT I/Y = 4.26

Therefore, the bond's yield-to-maturity is 4.26 percent

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The owner of Shady Grove Company has the bookkeeper write company checks to pay for his personal items. This violates __________
Rainbow [258]

Answer:

The separate-entity assumption

Explanation:

The separate-entity assumption is a principal in accounting according to which the financial transactions of a business and the personal expenses of the owners is to kept separate from each other. The expenses derived solely for the business is only to be counted under the expenses of the company. Inclusion of any personal expenses of the owner or any partner of the business is prohibited under this principal.  

In the given excerpt, the owner of Shady Grove Company had violated the separate-entity assumption by including the expenses of his personal items under the name of the Company.

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2 years ago
GRZ Inc. purchased a customized delivery truck in January 2018 for $70,000. They plan to use this truck for 7 years, and the com
asambeis [7]

Answer:

The correct answer is A) $2.800

Explanation:

Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:

  1. Finding the depreciable cost: Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000
  2. Finding the depreciation per year: Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000
  3. Finally, the depreciation tax shield for 2018: Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800
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3 years ago
HELPPP MEEE ILL MARK YOU BRAINLIEST
kakasveta [241]

Answer:

salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.

Explanation:

salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.

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8 0
3 years ago
In 2019, a marketing manager for New Balance’s Fresh Foam Zante shoe needs to forecast sales through 2021. She begins with the k
Gekata [30.6K]

The correct answer to this open question is "the lost-horse forecasting."

In 2019, a marketing manager for New Balance’s Fresh Foam Zante shoe needs to forecast sales through 2021. She begins with the known totals for 2018 and adjusts for positive factors like acceptance of new high-tech designs and great publicity, and for negative factors like higher inflation and predicted moves by the competition. This type of forecast is referred to as <u>lost-horse forecasting.</u>

In this kind of forecast, you first take into consideration the last known value of the article that is going to be forecasted, writing all the factors that might affect it in the forecast. Then you have to evaluate if that would have a positive or negative influence or impact in the article. Finally, you project a feasible situation.

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3 years ago
The Science of Macroeconomics
Yuliya22 [10]

Answer:

Macroeconomics deals with events that affects the entire country or industry as a whole while Microeconomics affects individual members of the economy such as companies and people.

A. Congress recently passed the Tax Cuts and Jobs Act of 2017. MACRO

This Act will affect the entire nation so it will fall under Macroeconomics.

B. Amazon now has a 40% share of all e-commerce revenues. MICRO

Amazon is a single company in the market so things related to it will be considered on a micro economic level.

C. Tuition at the local university increased 11% from last year. MICRO

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The unemployment rate of a nation relates to the nation as a whole so this will fall under macroeconomics.

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