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Orlov [11]
3 years ago
10

You find a zero coupon bond with a par value of $10,000 and 19 years to maturity. The yield to maturity on this bond is 4.7 perc

ent. Assume semiannual compounding periods. What is the price of the bond

Business
1 answer:
Nikitich [7]3 years ago
8 0

Answer:

$4,136.77

Explanation:

In this question, we use the present value formula which is shown in the attachment below:

Given that,  

Future value = $10,000

Rate of interest = 4.7%  ÷ 2 = 2.35

NPER = 19 years  × 2 = 38 years

PMT = $0

The formula is shown below:

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

After solving this, the price of the bond is $4,136.77

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Grason Corporation is preparing a budgeted balance sheet for 2018. The retained earnings balance at December 31, 2017 was $533,5
olga nikolaevna [1]

Answer:

D. $605,500

Explanation:

The computation of the expected balance in retained earnings on the 2018 is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

= $533,500 + $112,000 - $40,000

= $605,500

We simply applied the above formula so that the ending balance could arrive by considering all the items given in the question  

3 0
3 years ago
Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a
balandron [24]

Answer:

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

Explanation:

Given Cash outflow = $10 million

Provided cash inflows as follows:

Particulars           Good condition         Moderate condition        Bad Condition

Probability                  30%                               40%                                  30%

Cash flow                $9 million                     $4 million                       $1 million

Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million

Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million

While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = \frac{1}{(1 + 0.12){^1}} + \frac{1}{(1 + 0.12){^2}} + \frac{1}{(1 + 0.12){^3}} = 2.402

NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

3 0
3 years ago
In preparing its bank reconciliation for the month of April 2018, Coronado, Inc. has available the following information. Balanc
hoa [83]

Answer:

the adjusted cash balance as on April 30,2018 is $77,800

Explanation:

The computation of the adjusted cash balance as on April 30,2018 is as follows;

= Balance as per bank statement + deposit in transit - outstanding checks

= $78,800 + $9,300 - $10,300

= $77,800

Hence, the  adjusted cash balance as on April 30,2018 is $77,800

We simply applied the above formula so that the accurate value could arrive

4 0
2 years ago
“The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrar
denis-greek [22]
John Maynard Keynes believed in government intervention into the economy to regulate the markets. Therefore, this statement would signify Keynes' view that B) government regulation is necessary  to stabilize the economy. 
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3 years ago
The decision-making process has five steps. After collecting relevant information and evaluating each alternative, the next step
Otrada [13]

Answer:

Select the course of action

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Because it’s the next step after collecting relevant information and evaluating each alternatives

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2 years ago
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