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viktelen [127]
3 years ago
10

A 30-year maturity, 8% coupon bond paying coupons semiannually is callable in five years at a call price of $1,100. The bond cur

rently sells at a yield to maturity of 7% (3.5% per half-year).
Required:
a. What is its Yield to Call?
b. What is the yield to call if the call price is only $1 ,050?
c. What is the yield to call if the call price is $1100, but the bond can be called in two years instead of five years?
Business
1 answer:
aksik [14]3 years ago
4 0
Miss girl u asking for too much chile
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Industrial Machines needs to purchase a new machine costing $1.25 million. Management is estimating the machine will generate ca
max2010maxim [7]

Answer:

The firm shouldn't purchase the machine because the IRR is less than the required minimum

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calcuator

Cash flow in year 0 = $-1.25 million.

Cash flow in year 1 = $210,000

Cash flow in year 2 to 5 = $350,000

IRR = 8.51%

The firm shouldn't purchase the machine because the IRR is less than the required minimum

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

8 0
3 years ago
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of rec
makkiz [27]

Answer:

$25,650

Journal entries

Explanation:

The computation and the journal entries are as follows        

The estimated balance of the allowance for Doubtful Accounts is shown below:

= Total account receivable × estimated percentage

= $570,000 × 4.5%

= $25,650

The journal entry is shown below:

a. Bad debt expense A/c Dr  $13,650           ($25,650 - $12,000)

  To Allowance for doubtful debts  $13,650

(Being bad debt expense is recorded)

b. Bad debt expense A/c Dr  $24,650          ($25,650 + $1,000)

  To Allowance for doubtful debts  $24,650

(Being bad debt expense is recorded)

7 0
3 years ago
Please do your best. 75% of my grade
Yanka [14]

Answer:

1.False

2.truth

3.truth

4.False

Explanation:

8 0
2 years ago
What is the author's main claim or argument?<br> Pizza is the best
lys-0071 [83]
I hate pizza. it’s grosssdd
3 0
3 years ago
The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 7
worty [1.4K]

Answer: $45,000

Explanation:

Given that,

Accounts receivable = $ 5,000

Sales revenue = $75,000

Cash = $15,000

Salaries and wages expense = $20,000

Rent expense = $10,000

Net income = Sales revenue - Salaries and wages expense - Rent expense

                   = $75,000 - $20,000 - $10,000

                   = $45,000

4 0
3 years ago
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