Answer:
(a) Operating activity
(b) Financing activity
(c) Operating activity
(d) Investing activity
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
So,
(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount
(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities
(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities
(d) An increase in land value comes under the investing activity.
There are eight types of management in business. <span />
Answer:
Bond Price = $1294.65063 rounded off to $1294.65
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. Assuming the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.08 = 80
Total periods (n) = 18
r or YTM = 0.054 or 5.4%
The formula to calculate the price of the bonds today is attached.
Bond Price = 80 * [( 1 - (1+0.054)^-18) / 0.054] + 1000 / (1+0.054)^18
Bond Price = $1294.65063 rounded off to $1294.65
Answer:
YTM = 4%
Explanation:
Company (Ticker) Coupon Maturity Last Price Last Yield EST Vol (000s)
IOU (IOU) 6 Apr 19, 2034 111.44 ? 1,851
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<u>Determine the yield to maturity </u>
YTM = Rate * 2
years to maturity = 2034 - 2018 = 16 years
NPER = 2 * 16 = 32
PMT = ( face value * coupon rate ) / 2 = ( 2000 * 6% ) / 2 = 60
price of coupon ( PV ) = 2000 * 111.44% = 2228.8
Rate = 2% ( excel function : RATE(32,60,-2228.8,2000)
hence YTM = 2% * 2 = 4%
