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Elanso [62]
3 years ago
6

Bond P is a premium bond with a coupon rate of 9.2 percent. Bond D is a discount bond with a coupon rate of 5.2 percent. Both bo

nds make annual payments, have a YTM of 7.2 percent, have a par value of $1,000, and have seven years to maturity. a. What is the current yield for Bond P? For Bond D? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? For Bond D?

Business
1 answer:
Vera_Pavlovna [14]3 years ago
5 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Melrose Company has an investment in bonds issued by Roscoe Industries that are classified as available-for-sale securities. The
Andrews [41]

Answer:

c. Debit to Fair value adjustment for $30,000

Explanation:

The first step of accounting process is Journal entry and it is made to record the transactions for process of book keeping, it defines the accounts involved and effects of  transactions on the account by debit or credit.

As the bond price is amortized earlier by 5,000 then its net realizable value was $195,000 ( $200,000 - $5,000 ). on December 31, year 3 the fair value adjusted to $225,000. so the adjusted value will be $30,000 ( $225,000 - $195,000 ). The journal entry is as follow  

                                                                    Dr.               Cr.

Dec 31, year 3

Fair value adjustment account              30000

Unrealized gain on available for sale securities        30000

4 0
3 years ago
A bond has yield to maturity of 7.15 percent; face value of $1,000; time to maturity of 11 years and pays coupons semiannually.
maxonik [38]

Answer:

6.34 %

Explanation:

For computing the coupon rate, first we have to determine the PMT by using the PMT formula that is shown on the attachment

Given that,  

Present value = $939.02

Future value = $1,000

Rate of interest = 7.15% ÷ 2 = 3.58%

NPER = 11 years × 2 = 22 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the PMT is $31.70

It is semi annually

Now the annual PMT is

= $31.70 × 2

= $63.40

So, the coupon rate equals to

= $63.40 ÷ $1,000

= 6.34 %

5 0
3 years ago
When you analyze a system using the six-phase security process, you are performing a:?
ddd [48]
<span>When you analyze a system using the six-phase security process, you are performing a security architecture study.
</span><span>The security architecture analyzes and addresses the necessities, potential risks ,</span>vulnerabilities and security threats. 
<span>It implements, operates and controls security services and processes.</span>
5 0
3 years ago
Ryan is the manager of home repairs inc., a company that provides a wide range of repair and maintenance services. he claims tha
blsea [12.9K]

This scenario describes the company's <u>"Core competencies".</u>


A Core Competency is a profound capability that empowers an organization to convey interesting an incentive to clients. It exemplifies an association's aggregate adapting, especially of how to facilitate assorted generation aptitudes and incorporate different innovations. Such a Core Competency makes feasible upper hand for an organization and causes it branch into a wide assortment of related markets. Core Competencies likewise contribute generously to the advantages an organization's items offer clients.

6 0
3 years ago
You live in a community with many teenagers, and you work during the summer bagging groceries for a low hourly wage. How might l
mario62 [17]

Answer:

D. Your wages would probably be higher because demand for baggers would be higher.

Explanation:

If I live in a community with fewer teenagers looking for grocery bagging jobs, the supply of labour would be lower. This would lead to an excess of demand over supply, wages would rise as a result.

I hope my answer helps you

4 0
3 years ago
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