Answer:
The coupon rate is 10.3%
Explanation:
The interest to set on the bond in order to sell them at par can be computed using rate formula in excel:
=rate(nper,pmt,pv,fv)
nper is the number of times the bond would pay interest over its time to maturity which is 19*2=38
pmt is the interest payment semi-annually at $1000*10.3%/2=$51.5
pv is the price of the bond which is the par value of $1000
fv is the value at redemption which is also $1000
=rate(38,51.5,-1000,1000)
rate=5.15%
this is the semi-annual rate ,the yearly yield to maturity is 5.15%*2=10.30%
When a bond sells at par the yield to maturity is the same as the coupon rate
Answer: Ponzi Scheme.
Explanation:
The Organisation described in the question is making use of Ponzi Scheme for their clients. A Ponzi scheme is a fraudulent form of business where initial investors are paid by later investors. The scheme promises abnormally high returns from investments within a short period, with some investors ending up losing their investments.
Answer:
The direct labor rate variance for November is $34,200
Explanation:
To find out the direct labor rate variance, we have to multiply the actual standard rate of direct labor into actual hours of direct labor used
Standard hourly rate of direct labor hour = $14.40
Actual direct labor hours = 5,000
Standard direct labor cost
= 5,000 × $14.40
= $72,000
Total factory wages are $42,000 in which direct labor is 90%
= $42,000 × 90%
= $37,800
Actual direct labor cost = $37,800
Therefore,
Direct labor rate variance = Standard direct labor cost - Actual direct labor cost
Direct labor rate variance
= $72,000 - $37,800
= $34,200
Answer: 1.37
Explanation:
The basic earnings per share" if after-tax earnings are $780,000 would be calculated as the after tax earning divided by the outstanding shares. This will be:
= $780000 / $570000
= 1.3684211
= 1.37
<span>Of the company xyzxyz increased it's variable expenses during the current year, that means it spent more money to operate the business, even though fixed expenses remained the same. As a result, unless the company had more revenue, there has to be less profit.</span>
