Anyone got byron ..T^T

Last year, Forest Products issued both 5-year and 10-year bonds at par. The bonds each have a coupon rate of 5.5 percent, paid s

Anna007 [38]

Answer:

Price at issuance is $1,000 for both bonds.

Price of the 5 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)⁸ = $747.77

PV of coupon payments = $27.50 x 6.81694 (PV annuity factor, 3.7%, 8 periods) = $187.47

Market price = $935.24

this bond's price decreased by 64.76/1,000 = 0.06476 = 6.48%

Price of the 10 year bond after the market rate increased to 7.4% is:

PV of face value = $1,000 / (1 + 3.7%)¹⁸ = $519.97

PV of coupon payments = $27.50 x 12.97365 (PV annuity factor, 3.7%, 18 periods) = $356.78

Market price = $876.75

this bond's price decreased by 123.25/1,000 = 0.12325 = 12.33%

5 0

3 years ago

Interest Practice How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

shusha [124]

Answer:

x1.044 - x

Explanation:

The formula for calculating compound interest is as below

FV = PV × (1+r)^n

where FV = Future Value

PV = Present Value

r = annual interest rate

n = number of periods

How much would x dollars earn in 1 year at a rate of 4.4% compounded annually?

In this case, PV =X, r =4.4% and n=1

FV = x x ( 1+4.4/100)^1

Fv = x x( 1.044)^1

Fv = x1.044

x dollars will earn x1.044 - x

8 0

3 years ago

The returns on the Bledsoe Small-Cap Fund are the most volatile of all the mutual funds offered in the 401(k) plan. Why would yo

aalyn [17]

Answer:

The yields are perhaps the most unpredictable for the small cap fund since the securities in this account are the most risky. It does not mean that the fund is awful, only that the danger is greater, and thus the overall return is greater.If you are prepared to accept the extra risk in expectancy of a greater return, you should like to put money in this fund. The increased costs for this Fund will be anticipated.Small cap funds typically have higher spending due largely to greater operating costs, along with lower resource analysis.

7 0

3 years ago

Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Business has fuele

maria [59]

Answer:

Competitive Drivers 

Description

Explosive growth in international business

Implication for Business

Intense competition in world markets

Globalization has led to an explosive growth in international.business which has led to increased competition amongst companies because they now have to compete on a global scale against numerous companies in various locales.

Political Drivers 

Description

Preferential trading arrangements and privatization of industries

Implications for Business

Increased opportunities for trade and investment

Some Countries offer great trading agreements this enabling companies to trade in other countries. This opportunity means that there are increased opportunities for trade by companies in the countries involved in the agreement.

Cost Drivers

Description

Exporting or producing Overseas

Implications for Business

Lower Cost of Goods sold

Globalization has enabled companies to be able to produce in cheaper markets for labor such as in Asia and Africa. This has led to a lower cost of goods sold and therefore higher profits.

Technological Drivers 

Description

Explosive growth of high-power, low-cost computing

Implications for Business

Growth in Services.

Driving Globalization is an increased use of technology by human beings. The world is now connected by mere seconds which has enabled companies to derived clients all over the world this enabling them to offer more services.

Market Drivers

Description

Emergence of Global Customers

Implications for Business

New Opportunities and New Markets.

Another factor driving Globalization is the availability of new markets to sell their goods in in different territories. Companies can therefore have an increased demand base which will mean more Profitability.

5 0

3 years ago

Under the percentage of completion method, if the actual costs are ____ the estimated costs, the taxpayer must pay interest on t

Sphinxa [80]

Answer:

The correct answer is Less than the estimated costs.

Explanation:

The percentage method completed is an accounting practice used to recognize income in long-term contracts.

When long-term projects (greater than one year) are undertaken, the costs and revenues associated with it are incurred throughout its life.

This accounting method, as its name suggests, allows the company to account for part of the associated income and expenses incurred as the project phases are completed. Thus, the percentage complete method is understood as a method of recognition of recognition of income and expenses that is applied continuously without having to defer income and expenses at the end of the project.

8 0

3 years ago

Anyone got byron ..T^T​

Anyone got byron ..T^T