The effective annual interest rate would be 19.5%.
Answer:
Bond Price or Present value = $23021820.4557 rounded off to $23021820
Explanation:
To calculate the quote/price of the bond today, the present value, we will use the formula for the price of the bond. As the bond is a semi annual bond, the semi coupon payment, semi annual number of periods and semi annual YTM will be,
Coupon Payment (C) = 25000000 * 0.07 * 6/12 = $875000
Total periods (n) = 5 * 2 = 10
r or YTM = 0.09 * 6/12 = 0.045 or 4.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 875000 * [( 1 - (1+0.045)^-10) / 0.045] +
25000000 / (1+0.045)^10
Bond Price or Present value = $23021820.4557 rounded off to $23021820
The correct answer is:
Like Harding, Coolidge tried to keep government out of business.
Explanation;
Like Harding, Coolidge needed to help workers' rights. Unlike Harding, Coolidge served to raise falling crop prices. Like Harding, Coolidge worked to keep government out of business. Unlike Harding, Coolidge understood in restricted government management of the business.
Answer:
a. Smooth Move should REJECT the order
b) Net loss from accepting the order $ (7,500)
Explanation:
Relevant costs are future incremental cash costs that arise as a direct consequence of a decision.
The relevant cash flows of this decision include the following:
- Variable cost of production -(3.10 +2.25 +1.15) + $0.20= $6.7 per unit
- Cost of additional machine - $12,000.
- Sales revenue from the special offer
$
Sales revenue from special offer (15,000×$7.00) = 105,000
Variable cost (15,000× $6.7) (100,500)
Cost of additional machine - <u> (12,000)</u>
Net loss from accepting the order <u> (7,500)</u>
Answer:
Yes I need people to talk to
Explanation:
