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Oksi-84 [34.3K]
2 years ago
9

You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond

matures in 30 years. What is the yield to maturity? (round your answer to two decimal places)
Business
1 answer:
drek231 [11]2 years ago
6 0

Answer:

the yield to maturity of this bond is 5.7%

Explanation:

given data

pays interest annually C =  $64

face value F = $1,000

current market price P = $1,062.50

bond matures n = 30 years

solution

we get here yield to maturity that is express as

yield to maturity =

yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2   ]     .................1

put here value and we get

yield to maturity = \frac{64+(1000-1062.50)}{11}  ÷ \frac{(1,000+1,062.50)}{2}

yield to maturity = 0.057

so that the yield to maturity of this bond is 5.7%

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The composition of the Fingroup Fund portfolio is as follows:_________.
exis [7]

Answer: $10.49

Explanation:

Net Asset Value is the equity of the portfolio divided by the number of shares outstanding.

Equity = Assets - Liabilities

So,

Net Asset Value = (Assets - Liabilities) / No. of shares outstanding

Assets = (200,000 * 35) + (300,000 * 40) + (400,000 * 20) + (600,000 * 25)

= $42,000,000

Liabilities will be the accrued management fee.

Net Asset Value = (42,000,000 - 30,000) / 4,000,000

= 10.4925

= $10.49

6 0
2 years ago
Polly sells goods to customers in exchange for a $10,000 noninterest-bearing note due in 3 years. The interest rate on this type
Irina-Kira [14]

Answer:

present value = $8396.19

Explanation:

given data

cash flow = $10,000

rate r = 6 %

time period t = 3 years

to find out

present value of the note  

 

solution

we get here present value that is expressed  as

present value =   \frac{cash\ flow}{(1+r)^t}     ....................1

put here value and we will get present value

present value = \frac{10000}{(1+0.06)^3}  

solve it we get

present value = $8396.19

7 0
3 years ago
Wall -to- wall records' April 1 inventory had a cost of $48,000 and a retail value of $70,000. During April, net purchases cost
algol13

Answer:

<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>

Explanation:

Wall-to-Wall Records

                                        Cost          Retail

Beginning Inventory $ 48,000 $ 70,000

Purchases                     $ 210,000       $ 390,000

Cost of Goods Available for Sale $ 258,000 $ 460,000

Cost to Retail Ratio

= $ 258,000 ÷ $ 460,000

= 0.5609 = 56.09%

                                                    Cost            Retail

Cost of Goods Available for Sale $ 258,000   $ 460,000

− Sales                                                                 $ 280,000

Ending Inventory                                          $ 180,000

× Cost to Retail Ratio                                    0.5609

<u>Ending Inventory                           $ 100,962 </u>

5 0
3 years ago
Sally, Greg, John, and Amar are working on a project for a customer that is aimed at cutting the client's electrical costs. The
vodomira [7]

Answer: Virtual organization

Explanation:

Virtual organization is a firm of organization whereby the members or the employees are geographically apart and not at the same place and therefore communicates by using their e-mails, phones, collaborative computing, or any other means of communication.

The virtual organization is what is being used by Sally, Greg, John, and Amar in the question above.

7 0
3 years ago
Klassen Toy Company, Inc., assembles two parts: Part 1 is first processed at workstation A for 15 minutes per unit and then proc
Sever21 [200]

Answer:

a) Process A is the bottleneck of the process

b) Hourly capacity = 60 / bottlenecktime = 60/25 = 2.4 units / hour

Explanation:

Part 1 is processed at A for 15 minutes and then at B for 10 minutes.

Thus part 1 take 15 + 10 i.e. 25 minutes two complete both processes

Part 2 is processed at C for 20 minutes.

Output from B and C i.e. part 1 and 2 respectively are fed to process D where the time taken to assemble is 15 minutes

Thus looking at the given data,

Part 1 takes longer time i.e. 25 minutes to reach process C compared to part 2 i.e. 20 minutes

So bottleneck occurs at process A and B because it takes maximum time i.e. 25 minutes

a) Process A is the bottleneck of the process

b) Hourly capacity = 60 / bottlenecktime = 60/25 = 2.4 units / hour

4 0
3 years ago
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