Answer:
Answer is given below.
Explanation:
SOLUTION
a. Calculation of Coupon Payment
Coupon Payment
= Face Value X Coupon Rate
/2
Coupon Payment = 1000*5.5% /2
Coupon Payment = 55 /2= 27.5
Therefore the Coupon Payment is = 27.51
cash flow diagram is attached.
Answer:
Current bond price is $891.74
Explanation:
Coupon rate: 7%
Tenor (Nper): 13 years
Par value: $1,000
YTM (discounting rate): 8.4%
Coupon received annually (PMT) = $1,000 * 7% = $70
Current bond price = present value of coupon received annually + present value of bond
To calculate PV of coupon received, we use excel in formula PV(discounting rate ,Nper,- PMT) = PV(8.4%,13,-70) = $541.30
or calculate manually = 70/(1+8.4%)^13+70/(1+8.4%)^12+…..+70/(1+8.4%)^1 = $541.30
present value of bond = 1000/(1+8.4%)^13 = $350.44
Current bond price = $541.30 + $350.44 = $891.74
Lean operations including manufacturing and production are a system to minimize waste. This system works proactively and tries to limit the amount of productivity being wasted to manufacture items. Less transactions are needed in this system being they are efficient throughout the organization.
Answer:
D. $605,500
Explanation:
At the end of 2014, the Retained Earning balance was $533,000. This serves as our beginning balance for the year 2015.
Furthermore, Dividends are expected to be paid out, i.e. a deduction on the balance sheet.
Retained Earnings on the 2015 budgeted balance sheet = Beginning Balance + Expected Net Income - Expected Dividend
=533,500+112,000-40,000
=$605,500
Answer:
The correct answer is number (1): double indemnity provision.
Explanation:
A double indemnity provision is added in life insurance to double the amount the beneficiaries of the policyholder receive in front of his or her death in an accident. Double indemnity provision does not cover events in which the policyholder dies because of natural reasons or when those individuals had hazardous jobs. Premiums are higher with a double indemnity provision.
