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Murrr4er [49]
3 years ago
13

A 10,000 par value bond with coupons at 8%, convertible semiannually, is being sold three years and four months before the bond

matures. The purchase will yield 6%convertible semiannually to the buyer. The price at the most recent coupon date, immediately after the coupon payment, was 5,640.Calculate the market (quoted) price of the bond.
Business
1 answer:
konstantin123 [22]3 years ago
6 0

Answer:

$9,124.94

Explanation:

the clean price of the bond two months ago was $5,640.

Currently, interest rate have changed and the price of the bond has changed:

the semiannual yield is 4%, that means that the bimonthly yield = 1.04 = (1 + r)³

1 + r = 1.0132

r = 0.0132

the current price of the bond:

PV of face value = $10,000 / (1 + 0.0132)²⁰ = $7,693.01

PV of coupon payments = ($300 x {[1 - (1 + 0.04)⁻⁶] / 0.04}) / (1 + 0.0132)² = $1,572.64 / (1 + 0.0132)² = $1,531.93

minus accrued interests (dirty price) = $300 x 1/3 = $100

Market value of bond = $9,124.94

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To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipmen
TiliK225 [7]

Answer:

B. primary activity

Explanation:

Based on the information provided within the question it can be said that in this scenario North Star is addressing a primary activity in the value chain analysis. This is because the five primary activities are inbound logistics, operations, outbound logistics, marketing and sales, and service. So in this scenario, North Star implementing new equipment into its production it is dealing with the operations factor of the primary activities.

8 0
3 years ago
Inventory records for Herb's Chemicals revealed the following: March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200 Purchase
amid [387]

Answer:

correct option is A. $5,087

Explanation:

given data

March 1, 2016, inventory: 1,000 gallons @ $7.20 = $7,200

Purchases                                        amount                 Sales  

Mar. 10               600 gals @ $7.25      4350          Mar. 5 400 gals

Mar. 16               800 gals @ $7.30       5840          Mar. 14 700 gals

Mar. 23              600 gals @ $7.35        4410          Mar. 20 500 gals

                                                                                    Mar. 26   700 gals

total                         3000 @7.267          21800

cost of good sold   2300 @ 7.267         16714

so

balance is =  3000 - 2300 = 700 @ 7.267

ending inventory is $5087

so correct option is A. $5,087

7 0
3 years ago
A product sells for $200 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to
ruslelena [56]

Answer:

A 6,500

Explanation:

The number of units to be sold is calculated as;

= (Pretax income + Fixed costs) ÷ Contribution margin

Given that;

Pretax income = $35,000

Fixed costs = $420,000

Contribution margin

= Selling price per unit - Variable cost per unit

= $200 - $130

= $70

= ($35,000 + $420,000) ÷ $70

= 6,500 units

6 0
2 years ago
Economic growth depends on many factors. mark the three KEY elements that have been shown to be important listed
Eva8 [605]

Answer:

is d

Explanation:

4 0
3 years ago
Radek Company estimates its uncollectible accounts by aging its accounts receivable and applying percentages to various aged cat
stepladder [879]

Answer:

the  bad debt expense that reported in the income statement is  $2,300

Explanation:

The computation of the bad debt expense that reported in the income statement is as follows;

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= $2,300

Hence, the  bad debt expense that reported in the income statement is  $2,300

7 0
2 years ago
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