1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Oksanka [162]
3 years ago
10

Kasey Corp. has a bond outstanding with a coupon rate of 5.86 percent and semiannual payments. The bond has a yield to maturity

of 4.3 percent, a par value of $2,000, and matures in 24 years. What is the quoted price of the bond
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

Market price = $2,464.21

Explanation:

coupon rate = 5.86% / 2 = 2.93%

YTM = 4.3% / 2 = 2.15%

face value = $2,000

periods to maturity = 24 x 2 = 48

Present value of face value = $2,000 / (1 + 2.15%)⁴⁸ = $720.42

Present value of coupon payments = $58.60 x {[1 - 1/(1 + 0.0215)⁴⁸ ] / 0.0215} = $1,743.79

Market price = $2,464.21

You might be interested in
Electronic Superstore's inventory increases during the year by $3.8 million, and its accounts payable to suppliers increases by
Mrrafil [7]

Answer:

$31 million

Explanation:

The computation of the amount of cash paid to suppliers of merchandise during the reporting period is shown below:

= Costs of goods sold + increase in inventory - increase in accounts payable

= $33 million + $3.8 million - $5.8 million

= $31 million

The Costs of goods sold + increase in inventory is also known as purchase of inventory

3 0
3 years ago
Gale Corporation manufactures windsocks. The business recently decided to adopt an ABC system. The following activities have bee
solniwko [45]

Answer:

$270,000

Explanation:

The first step is to calculate the overhead cost of the material handling parts

Since each wind stock require 3 parts then the overhead cost can be calculated as follows

= 3 × 20,000

= 60,000

The overhead cost of machining hours can be calculated as follows

Since 5 minutes is spent in the machining department then overhead cost is

= 5× 20,000

= 100,000

The overhead cost of packaging number of finished units can be calculated as follows

= 2 × 20,000

= 40,000

Total overhead cost= 100,000 + 60,000 + 40,000

= 200,000

The total cost of direct materials and labor can be calculated as follows

= 3.5 × 20,000

= 70,000

Therefore the total cost of producing 20,000 windstocks is

= Total overhead cost + total cost of direct materials and labor

= 200,000 + 70,000

= $270,000

Hence the total cost of producing 20,000 windstocks is $270,000

5 0
3 years ago
Your checkbook register shows these activities for the month.Old balance: $134.56Check 512 to Good Stuff for $32.19Deposit: $345
Dvinal [7]

Based on the various activities for the month that were reflected in your checkbook, your new balance would be $135.84.

<h3>What is the checkbook balance?</h3>

This can be found as:
= Opening balance + Deposits - Checks and withdrawals

Solving gives:

= 134.56 + 345.12 - 32.19 - 250 - 16.65 - 45

= $135.84

In conclusion, your new balance is $135.84.

Find out more on checkbook balances at brainly.com/question/3719189

#SPJ1

3 0
2 years ago
Home Place Hotels Inc. is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect
solong [7]

Answer:

$291.56

Explanation:

Find the dividend amount per year;

D1 = D0(1+g ) = 3.40(1+0) = 3.40

D2 = 3.40*(1.05) =3.57

D3 = 3.57*(1.05) =3.7485

D4= 3.7485*(1.15) = 4.3108

D5 = 4.3108 *(1.10) = 4.7419

Find the Present value of each year's dividend;

PV (of D1) = 3.40/ (1.14 ) = 2.9825

PV (of D2) = 3.57/ (1.14² ) = 2.7470

PV (of D3) = 3.7485/ (1.14³ ) = 2.5301

PV (of D4) = 4.3108/ (1.14^4 ) = 2.5523

PV (of D5 onwards)=\frac{\frac{4.7419}{0.14-0.1} }{1.14^{4} } \\ \\ =\frac{474.19}{1.6890}

PV (of D5 onwards) = 280.7519

Next, sum up the PVs to find the maximum price of this stock;

= 2.9825 + 2.7470 + 2.5301 + 2.5523 + 280.7519

= 291.564

Therefore, an investor should pay $291.56

7 0
3 years ago
According to the article, why might employers want to ensure that they have cause when terminating an employee?
lara [203]

Reasons to terminate an employee is because of sexual harrasment, Drug or alchohol use, damaging company property, or unethical behaviour and service.

6 0
3 years ago
Other questions:
  • At specific mileage intervals, Capitol sends certificates to owners of their automobiles offering discounts on repair services t
    7·1 answer
  • Read the following paragraphs about four films and then identify the purpose of each paragraph: to summarize, to analyze, to syn
    11·1 answer
  • One reason some manufacturing companies began moving production to China in the early 2000s was due to lower wages that could be
    14·1 answer
  • Colin wants to set up an aquarium.. He already has a tank, but needs to purchase fish, filters, and plants. If the cost of the f
    14·1 answer
  • Capital structure decisions include determining: Multiple Choice which one of two projects to accept. how to allocate investment
    14·1 answer
  • An inmate escapes from the county prison. there is a $500 reward offered for any information leading to the capture of the inmat
    6·1 answer
  • A ______ establishes a company's financial and strategic objectives, and provides a set of guidelines for achieving the desired
    12·1 answer
  • What school did Brittany Bailey go to on a field trip that helped her decided on her career?
    7·2 answers
  • A cheque of Rs 4500 received from yogesh and deposited into bank. Required: Journal Entry​
    9·1 answer
  • Concord Corporation is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Concord made
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!