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3 years ago

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A callable bond pays annual interest of $60, has a par value of $1,000, matures in 20 years but is callable in 10 years at a pri

ce of $1,100, and has a value today of $1055.84.The yield to call on this bond is __________.A) 6.00%B) 6.58%C) 7.20%D) 8.00%

1 answer:

Elena-2011 [213]3 years ago

5 0

A. 6%

Calculator entries are N = 10, PV = -1,055.84, PMT = 60, FV = 1,100, CPT I/Y 6

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the opportunity cost of going to a movie is: the money spent on the ticket only. all of the other movies that could have been se

labwork [276]

the opportunity cost of going to a movie is: the total cash expenditure needed to go to the movie plus the value of your time.

What you forgo in order to get a thing is its opportunity cost. In this situation, the opportunity cost of attending a movie comprises both the overall cost of admission and the value of the time you forwent to see the film.

<h3>What is an example of opportunity cost?</h3>

Opportunity costs give decisions that appear simple context. Think about the price of graduate school. By adding up the price of tuition, board, books, and other educational expenses over the necessary number of years at your top-choice university, you might theoretically calculate this cost. Let's zoom in though. What other options are there? First of all, you shouldn't even think about paying for room and board because you'll need to do so regardless of whether you go graduate school (unless you're moving back into your mother's basement). Additionally, by choosing to go graduate school, you forgo the money you would have earned had you chosen to start working after receiving your bachelor's degree.

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2 years ago

You deposit a $100 check from a friend in your account. A couple of days later, you buy $45.20 worth of groceries and pay with a

igomit [66]

Answer:

The correct answer is, $121.2

Explanation:

You went for grocery and paid the bill through check.

Amount of grocery purchased: $45.20

You check bounced and you owe bank $25 because you didn't have much balance in your account that you paid for the groceries.

Your bank did an additional transaction of debiting your account with $25 for the bouncing of your check.

Grocery store sent you the letter to tell that you owe them $25 for the bounced check

You will have to pay again $45.20

Money order fee: $1

So the amount that you actually spent on groceries would be:

$45.2(real grocery amount) + $25(you owe to bank for bouncing your friend's check) + $25( Your check bounced) + $25(grocery store charged due to bounced check) + $1(money order)

= $121.2

So you are actually charged $ 121.2 for the groceries.

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4 years ago

Classify each of the following statements as positive or normative. Statement Positive Normative.

maw [93]

the answer for the question is b

3 0

3 years ago

Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company grante

vitfil [10]

Answer:

1. $80,000,000

2. (The Journal entries can be found below)

Explanation

1. Fair value per share x shares granted = million fair value of award

=$5×$16,000,000 = $80,000,0000

The total compensation cost pertaining to the restricted shares is $80,000,000

2. Journal entries as at December 31, 2021. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Journal entries as at December 31, 2022. ($ in millions)

Dr Compensation expense ($80 million ÷ 2 years) 40

Cr Paid-in capital—restricted stock 40

Dr Paid-in capital—restricted stock 80

CrCommon stock (16 million shares x $1 par) 16

Cr Paid-in capital—excess of par (remainder) 64

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4 years ago

Assume that you hold a well-diversified portfolio that has an expected return of 10.0% and a beta of 1.50. You are in the proces

Sedbober [7]

Based on the expected returns and beta of the portfolio and investment, after the purchase of omega stock, the expected return is 11% and the beta is 1.55.

<h3>What is the expected return?</h3>

Find the value of the Omega stock:

= 2,000 x 10

= $20,000

The total value of the new portfolio is:

= 80,000 + 20,000

= $100,000

Expected value is:

= (80,000 / 100,000 x 10%) + (20,000 / 100,000 x 15%)

= 8% + 3%

= 11%

<h3>What is the beta?</h3>

= (80,000 / 100,000 x 1.50) + (20,000 / 100,000 x 1.75)

= 1.2 + 0.35

= 1.55

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2 years ago