Answer:
(a) Dollar price of the bond = Par value × Current price percentage
= $1,000 × 106.124%
= $1,061.24
(b) Bond's current yield:
Annual interest paid in dollars = Bond par value × Rate of interest
= $1,000 × 7.8%
= $78
= 0.0734
= 7.34%
(c) Issue price of bond is $1,000 and current maturity price is $1,061.24. Thus, bond price is greater than the par value.
(d) Current yield is the return on bond at current price. Yield to maturity is 6.588 % and current yield is 7.34%. Since the current price is more than the par value, therefore, YTM is lower than the current yield.
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Answer:
Assembly Work In Process Inventory
Explanation:
The units completed cost will be move from one process into the next one.
The transferred-out cost will be credited from Molding(origin) and debited into Assembly Work-in-Process(destination)
As this is a theoreticalquestion we don't have to look into the numbers.
Answer:
Final Value= $13,585.46
Explanation:
Giving the following information:
You decide to invest in the stock market, which has earned about 11% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 today for 25 years.
We need to use the following formula:
FV= PV*(1+i)^n
FV= 1000*(1.11)^25= $13,585.46