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mestny [16]
4 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]4 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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Darwin Inc. sells a particular textbook for $29. Variable expenses are $21 per book. At the current volume of 44,000 books sold
Dvinal [7]

Answer:

The answer is A

Explanation:

To start with;

Contribution margin per unit = selling price($29) - variable cost($21)

$29 - $21

= $8 per book...

So break even sales =fixed cost(expense) / contribution margin.

Break even sales is 44,000 units and contribution margin is $8.

Therefore, fixed cost or expenses=

Break even sales x contribution margin

44,000 x $8

=$352,000

7 0
3 years ago
Juliet spends her day making copies for instructors, filing information for the dean, and recording minutes from meetings. Julie
Leno4ka [110]

Answer:

(B) training

Explanation:

Right on edg

Hope It Helps :)

6 0
3 years ago
Read 2 more answers
William wrote a check for $150.00 for his gas bill, but he only has 96.26 in his checking account. What will happen to the check
TEA [102]

Answer:

The person will ask William to check his checking account and then William would have to lower the check amount he had previously wrote.

Explanation:

If you write a check or make a purchase for more than you have in your checking account, your bank may cover the difference. This line of credit offered by the bank is called overdraft protection. ... Furthermore, if your account remains overdrawn, your bank may also charge you daily interest on the loan.

7 0
3 years ago
1. The car dealer is offering a promotion on a new that the buyer pays zero interest over 72 months. The monthly payment is $350
inessss [21]

Answer:

selling price of this car is $22700  

Explanation:

given data

zero interest = 72 months

monthly payment = $350

market interest rate = 3.5% per year = 0.2917 % per month

time = 6 year = 72 months

solution

we get here present value of annuity that is

present value  annuity  = ( 0.2917 % per month , 72 months )

present value  annuity  =  64.8568

so here selling price of car is

selling price = monthly payment ×  present value  annuity  ............1

selling price = $350 × 64.8568

selling price = $22700

so selling price of this car is $22700  

8 0
3 years ago
A company has employed two workers A and B whose productivities are 20units and 15units respectively. The wage for A is k12 whil
Leni [432]

Answer:

no

Explanation:

In order to achieve optimal employment level, the ratio of productivity between employees must be equal to the ratio between their wages, e.g. an employee who is 25% more productive, should earn 25% more.

In this case, the productive ratio is 15:20 or 3:4, while the wage ratio is 8:12 or 2:3. Since the wage ratio is lower than the productivity ratio (2:3 < 3:4), the two employees are not optimally employed.

3 0
3 years ago
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