1. Working with Numbers and Graphs Q1 Last year, Raphael bought a bond for $10,000 that promises to pay him $900 per year. This year, he can buy a bond for $10,000 that promises to pay $1,000 per year. If Raphael wants to sell his old bond, what is its price likely to be

Answers

Answer 1

Answer:

$9,000

Explanation:

Last year, Raphael bought a bond for $10,000 that promises to pay him $900 per year

Interest rate = $900/$1000 * 100 = 9%

This year, he can buy a bond for $10,000 that promises to pay $1,000 per year.

Interest rate = 1,000/10000 * 100 = 10%

If Raphael wants to sell his old bond, he has to lower its price in order to compensate for rise in interest rate. The bond, which he would sell, should pay 10% interest PA

=>> 900/10% * 100 = $9,000

So, the bond price is likely to be $9,000


Related Questions

We discussed the invasions of the Roman world by various Germanic tribes in the fifth century and the Arab-Islamic conquests of Persia, most of the Byzantine Empire, and much of the Mediterranean world in the seventh and eighth centuries. How did the new invaders manage to govern the advanced civilizations that they conquered?

Answers

Answer:

The invaders were able to govern the more advanced civilizations because they adopted most of the conquered civilizations' customs, rules of governance, and even languages and religion.

For example, in the case of the Germanic tribes that conquered the Western Roman Empire, the rulers adopted, one by one, the religion of the Roman Empire: Christianity, more specifically, the Roman Catholic variant.

They also began to use the language of the Empire: Latin, for ecclessiastical and political matters, and while political institutions did change a lot, some of the political institutions of the Empire did survive in the sucessor states that the Germanic rulers carved out of the Roman territory.

An example of a poor study environment is a place with

a chair that has a strong back.
textbooks and other resources.
minimal talking and no background noise.
messy surfaces and a lot of movement.

Answers

Answer:

messy surfaces and a lot of movement

Explanation:

It will make you less focused

Answer:

D messy surfaces and a lot of movement.

Explanation:

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each and a coupon rate of 9 percent. The interest is paid semiannually. What is the amount of the annual interest tax shield if the tax rate is 34 percent?A. $58,500B. $60,750C. $60,100D. $62,250E. $61,200

Answers

Answer:

E. $61,200

Explanation:

total interest expense = 2,000 bonds x $1,000 per bond x 9% = $180,000

the interest shield is the amount of taxes saved by paying interest expense

interest shield = total interest expense x tax rate = $180,000 x 34% = $61,200

this means that the company will be able to reduce its income taxes by $61,200 because it paid interests on their bonds

Phyllis makes a deal with her niece Stephanie that if Stephanie gave up gambling for two years, Phyllis would pay Stephanie $5,000. Stephanie gave up gambling for the required two years. Does this deal have valid consideration

Answers

Answer:

Yes .

Explanation:

I think so because Stphanie did what Phyllis asked , now she should get her well deserved $5,000 .

The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months. The price of a 3-month put option with an exercise price of $50 is $4. If the risk-free interest rate is 10% per year, what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money

Answers

Answer:

$5.18

Explanation:

Calculation for call option

Using this formula

Call option=Put option + Exercise price-[Exercise price/(1+Risk-free interest rate)^Time

Let plug in the formula

Call option= 4 + 50 - [50/(1+.10)^1/4]

Call option= 4 + 50 - [50/(1.10)^1/4]

Call option= $5.18

Therefore what must be the price of a 3-month call option on C.A.L.L. stock at an exercise price of $50 if it is at the money is $5.18

An investor is bearish on a particular stock and decided to buy a put with a strike price of $44. Ignoring commissions, if the option was purchased for a price of $.93, what is the break-even point for the investor

Answers

Answer:

$43.07

Explanation:

Strike price of Put Option = $44

Option purchased price = $0.93

Break-even point for the investor = [Strike price - Put Option purchased price}

= $44 - $0.93

= $43.07

Therefore, the Break-even point for the investor is $43.07

A one year call option has a strike price of 50, expires in 6 months, and has a price of $4.74. If the risk free rate is 3%, and the current stock price is $45, what should the corresponding put be worth?
A) $12.74.
B) $10.48.
C) $5.00.
D) $9.00.
E) $8.30.

Answers

Answer:

$9.90

Explanation:

Using Put Call Parity Equation:

C + X/(1 + r)^t + S + P

Call price + PV of exercise price = Spot price + Put price

4.74 + 50/(1.03)^0.30 = 45 + P

4.74 + 50/1.00891 = 45 + P

4.74 + 49.5584 = 45 + P

P = 4.74 + 49.5584 - 45

P = 9.2984

P = $9.90

Thus, the Price of Put Option with $50 exercise price = $9.90

In 2010, the $471 billion deficit on the U.S. current account was offset by a surplus of $255 billion on financial account. This difference is the result of:_________.
A. budget deficit.
B. statistical discrepancy.
C. trade deficit.
D. national debt.

Answers

Answer:

B. statistical discrepancy.

Explanation:

Since it is mentioned that the $471 million represents the deficit in the US current account i.e. counterbalanced by a surplus of $255 billion

So here the difference represents the statistical discrepancy

Therefore as per the given situation, the correct option is B

And, the rest of the options are wrong

Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey budgeted its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000. If the PDOH rate uses machine hours as the cost driver, what is the total amount credited to the overhead account control account

Answers

Answer:

$165,000

Explanation:

Calculation for what is the total amount credited to the manufacturing overhead account for the year for Grey

First step is to calculate Predetermined overhead rate using this formula

Predetermined overhead rate = Estimated overhead costs / Estimated machine hours

Let plug in the formula

Predetermined overhead rate = $220,000 / 20,000 machine hours

Predetermined overhead rate= $11

Second step is to calculate Total amount credited to the factory overhead account for the year for Grey

Using this formula

Total amount credited to the factory overhead account for the year for Grey = Predetermined overhead rate × Actual machine hours

Let plug in the formula

Total amount credited to the factory overhead account for the year for Grey= $11 × 15,000 machine hours

Total amount credited to the factory overhead account for the year for Grey = $165,000

Therefore the Total amount credited to the factory overhead account for the year for Grey will be $165,000

Susan won $2,000 at the blackjack tables on her birthday. Her winnings are an example of:________.
a. an in-kind transfer.
b. transitory income.
c. life-cycle income.
d. permanent income.

Answers

Answer:

B. Transitory income.

Explanation:

As the name sounds, it is seen to be a form of income that is said to be anticipated. This form of income does not play key roles in the standard of living of the said person. This income is clearly a short-lived kind as it cannot hold a person or family towards a certified period of time. Also in many cases, economists are seen to believe that people base their consumption on their permanent income, therefore, inequality in consumption is one gauge of inequality of permanent income; making consumption less effectective, as transitory changes in income, they are more equally is current income.

Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are paid semiannually. The bond is currently selling for $828 per $1,000 bond. What is the cost of debt?
a. 8%
b. 9%
c. 10%
d. 11%
e. 12%

Answers

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

Sandra goes into her favorite shoe store where they are holding a special sales promotion. The salesperson explains to Sandra that if she purchases one pair of shoes, she would receive a free pair of socks. Which type of sales
promotion is this?
NEED ASAPPP ITS AN EXAM..

Answers

Answer:

Premium

Explanation:

A premium type of sales promotion is this. Thus, option B is correct.

Who is a salesperson?

The salesman is in charge of welcoming clients, guiding them toward the merchandise they need, and counting up transactions. You need to be a great communicator if you want to succeed in sales. A successful salesman achieves sales goals while being courteous and helpful to consumers.

The salesman is in charge of welcoming clients, guiding them toward the merchandise they need, and counting up transactions. You need to be a great communicator if you want to succeed in sales. A successful salesman achieves sales goals while being courteous and helpful to consumers.

With the confirmation of purchase, you can receive a reward for nothing or for minimal shipping as well as a handling fee. Therefore, option B is the correct option.

Learn more about salesperson, here:

https://brainly.com/question/1175840

#SPJ2

In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this change impact GDP in the economy?

Answers

Answer:

Many people's wealth is held in stocks and as the price of stocks collapsed, they lost wealth.

Imagine that this happened to you. One day you are rich and that affects your spending habits. In a matter of few days or weeks, you lose a large portion of your wealth. So now, you are less rich or even poor. So your spending habits will be altered, i.e. you will spend less.

If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.

Orlando Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 12,000 Actual variable overhead incurred: $77,700 Actual machine hours worked: 18,800 Standard variable overhead cost per machine hour: $4.50 If Orlando estimates 1.5 hours to manufacture a completed unit, the company's variable-overhead spending variance is:

Answers

Answer:

$37,600 favorable

Explanation:

Variable overhead spending variance can be computed as;

= (Actual hours worked × Actual variable overhead rate) - ( Actual hours worked - Standard variable overhead rate)

= ( 18,800 hours × $77,700/12,000) - (18,800 hours × $4.5)

= [(18,800 × $6.5) - (18,800 × $4.5)]

= $122,200 - $84,600

= $37,600 favorable

In addition to candidates who have the technical skills required of the position, what else do employers look for

Answers

Answer:

a personality that fits with their work environment

Explanation:

The second most important trait that employers look for is a personality that fits with their work environment. In almost all jobs the candidate will be working with a varied number of other employees in the company. The employers want to make sure that the candidate's personality matches the personality of the other employees so that they make sure that the candidate will be a good fit in the company and get along with the rest of the employees. This will almost guarantee that the candidate will work as efficiently as possible.

The Blue Spruce Corp. has five plants nationwide that cost $350 million. The current fair value of the plants is $580 million. The plants will be reported at assets as:_________.
a) $930 million
b) $230 million
c) $350 million
d) $580 million

Answers

Answer:

C

Explanation:

Equipment are reported at historical values. the historical value in this case is the price at which the plants were acquired. This is $350 million.

Fair value is the price at which the plant would be sold at the market today.

The fair value would be recorded  by the acquiring firm in the case of the acquisition of The Blue Spruce Corp. or in a case were the plants are sold

Baker is single and earned $225,200 of salary as an employee in 2018. How much should his employer have withheld from his paycheck for FICA taxes? (Rounded to the nearest whole dollar amount)
A) $11,453
B) $10,861
C) $10,415
D) $15,892

Answers

Answer: $11,453

Explanation:

In 2008:

FICA-Social Security tax was payable at 6.2% of a limit of $128,400.

FICA-Medicare tax was payable at 1.45% of the total amount of $225,200.

Additional Medicare tax was payable on any amount in excess of $200,000 at 0.9%.

= (6.2% * 128,400) + (225,200 * 1.45%) + ( (225,200 - 200,000) * 0.9%))

= $11,453

A coupon on a 2-liter bottle of Pepsi, offering $1.00 off on a bag of potato chips, is which type of coupon:_____

a. cross-ruffing
b. scanner-delivered
c. response-offer
d. instant-redemption

Answers

Answer: a. cross-ruffing

Explanation:

Cross-ruffing coupons are coupons that are offered to a person buying a good on another good to encourage them to buy that other good as well. These are usually offered on goods produced by the same company or companies that have a relationship with each other.

They are a brilliant marketing ploy to result in one relating goods to another to boost sales. Offering a coupon on a bag of potato chips upon buying a bottle of Pepsi is there a cross-ruff coupon.

Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?

Answers

Answer:

26.43 %

Explanation:

The Capital Structure is based on  the Market Weight of the Sources of Finance as shown below :

Equity market value = Number of shares × price/share

Equity market value  = 10,200 ×  $36

Equity market value = $367,200

Current debt value = Number of bonds × price/bond

Current debt value = 520 × (1930)

Current debt value = $1,003,600

Preferred stock value = Number of shares × price/share

Preferred stock value = 215 ×  $87

Preferred stock value = $18,705

Total capital = Common equity value + Debt value + Preferred stock value

Total capital = $367,200 + $1,003,600 + $18,705

Total capital = $1,389,505

Weight of Equity = Equity value / Total capital

Weight of Equity  = $367,200 / $1,389,505

Weight of Equity = 26.43 %

Bryant Company has a factory machine with a book value of $93,500 and a remaining useful life of 6 years. It can be sold for $30,600. A new machine is available at a cost of $534,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $556,800 to $460,200. Prepare an analysis showing whether the old machine should be retained or replaced.

Answers

Answer:

Bryant Company

Analysis of old and new machines:

                                           Old Machine       New Machine

Annual depreciation costs   $10,833               $89,000

Savings from variable

  manufacturing costs             0                      $96,600

Net savings                          ($10,833)                $7,600

Explanation:

a) Data and Calculations:

Book value of old machine = $93,500

Remaining useful life = 6 years

Salvage value = $30,600

Depreciable amount of old machine = $62,900 ($93,500 - 30,600)

Annual Depreciation cost of old machine = $10,483 ($62,900/6)

Cost of new machine = $534,000

Useful life = 6 years

Depreciable amount of new machine = $89,000 ($534,000/6)

Reduction in variable manufacturing costs = $96,600 ($556,800 - $460,200)

Savings from new machine = $7,600

b) Conclusion: The old machine should be replaced.  It costs more to retain the old machine than it costs to replace it.  There will be a net gain of $7,600 from the new machine, from the reduction of the variable manufacturing costs from $556,800 to $460,200.

The seller agrees to pay the listing real estate agent a commission of 5%. The property is listed at $400,000, the buyer offers and seller agrees on price of $380,000 and it closes at that price. The buyer obtains a loan of $300,000. The property is tax assessed at $350,000. The commission most likely paid to the real estate agent is:__________
A. No commission is owed because it did not sell at the list price
B. $17,500
C. $20,000
D. $19,000

Answers

Answer:

C. $20,000

Explanation:

Note that we are talking about the listing commission. Listing commission will be calculated on the listed price.

So, the listed price will be = 400,000 * 5%

= $20,000

Thus, the commission most likely paid to the real estate agent is $20,000

In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows.
Budget Actual
Indirect materials $16,000 $14,300
Indirect labor 20,000 20,600
Utilities 10,000 10,850
Supervision 5,000 5,000
All costs are controllable by the department manager.
Prepare a responsibility report for April for the cost center.

Answers

Answer:

Hannon Company

Assembly Department

Responsibility Report

For the month of April 2020:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

Explanation:

a) Data and Calculations:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

b) The Assembly Department's responsibility report is a the budget analysis that compares its actual and budgeted amounts of controllable costs for the month of April, 2020.  The purpose of this report is to assign responsibility, improve performance, and hold a department or center responsible for its activities.

Bramble Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 4 boxtops from Bramble Frosted Flakes boxes and $2. The company estimates that 60% of the boxtops will be redeemed. In 2021, the company sold 809000 boxes of Frosted Flakes and customers redeemed 352000 boxtops receiving 88000 bowls. If the bowls cost Bramble Company $4 each, how much liability for outstanding premiums should be recorded at the end of 2021

Answers

Answer: $66700

Explanation:

Number of boxtops that was sold = 809000

Estimated boxtops to be redeemed = 809,000 × 60% = 485400

Less: Boxtops received = 352000

Estimated boxtops not received yet = 133400

The number of boxtops that will be needed per bowl will then be:

= 133400 / 4

= 33350

Therefore, liability for outstanding premiums that should be recorded at the end of 2021 would be:

= 33350 × ($4 - $2)

= 33350 × $2

= $66700

A time draft is a negotiable instrument, which means that it:_______
a. is also known as a bill of lading.
b. has no value given the deferred nature of the document.
c. can be sold to an investor.
d. cannot be transferred.
e. is generally not preferred in international transactions.

Answers

Answer:

c. can be sold to an investor.

Explanation:

The time draft would permits the draft bearer having two options that involved to sell it at a discount prior to the maturity time or hold it till maturity in the case when the amount is fully paid

Therefore as per the given situation, the time draft means that it could be sold to an investor

hence, the correct option is c

ANd, the rest of the options are wrong

Franklin corporation issues $97,000, 8%, 5-year bonds on January 1, for $101,370. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is:________.
a. $4,317
b. $7,760
c. $3,443
d. $3,880

Answers

Answer:

c. $3,443

Explanation:

Date     Account Titles                              Debit      Credit

Jan 1     Cash                                              101370

                  Bond payable                                          97000

                  Premium on issue of bonds                    4,370

                   (101370-97000)

Jul 1        Interest expenses (3680 - 437)  3,443

              Premium on issue on bond         437

              (4379/5 * 6/12)

                     Cash (97,000*8%*6/12)                          3,800

Nikoto Steel Co. budgeted manufacturing costs for 50,000 tons of steel are:Fixed manufacturing costs $50,000 per monthVariable manufacturing costs $12.00 per ton of steelNikoto produced 40,000 tons of steel during March. How much is the flexible budget for total manufacturing costs for March?a) $520,000b) $650,000c) $480,000d) $530,000

Answers

Answer:

d) $530,000

Explanation:

The computation of the total manufacturing cost for the march month is shown below

= Fixed manufacturing cost + (produced tons × variable manufacturing cost per ton)

= $50,000 + (40,000 Tons × $12.00 per ton)

= $50,000 + $480,000

= $530,000

hence, the total manufacturing cost for the march month is $530,000

Therefore the correct option is d.

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2018 and 2019, respectively. Pepe uses the equity method to account for its investment in Devin.What is the consolidated gain or loss on equipment for 2018

Answers

Answer: $9000

Explanation:

Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:

Cost of equipment = $120,000

Less accumulated depreciation = $66,000

Less: Amount Devin sold equipment to Pepe = $45,000

Consolidated loss= $120,000 - $66000 - $45000

= $9000

A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salvage value is $5000. The project will generate annual revenues of $24350. The annual rate of return is:_______
a. 17%
b. 50.3%
c. 16%
d. 15%

Answers

Answer:

22%

Explanation:

Net income = Annual cash flow - Depreciation

Net income = 24350 - (80,000-5,000 / 5)

Net income = 24350 - 15,000

Net income = $9350

Average investment = Beg. value + End. Value / 2

Average investment = 80,000 + 5,000 / 2

Average investment = $42,500

Annual rate of return = Net income / Average investment * 100

Annual rate of return = $9350 / $42,500 * 100

Annual rate of return = 0.22 * 100

Annual rate of return = 22%

Answer:Annual Rate of Return =22%

The correct option is not given

Explanation:

Annual Rate of Return = Net Income / Average Investment x 100

Net Income= Annual Cash flow - Depreciation

Straight-line depreciation =Cost - salvage value / useful years

= 80,000 - 5,000 / 5

75,000/5= $15,000

Net Income=$24,350 - $15,000

               =$9,350

Average Investment= Initial investment + salvage value / 2

$80,000 + 5000 / 2

= $85,000/ 2

$42,500

Annual Rate of Return =$9, 350/ $42,500 x 100

= 0.22 x100

=22%

Select the correct answer.
Which type of temporary group is formed to address a specific situation in an organization?

A. interest group
B. secondary group
C. self-managed group
D. task group
E. command group

Answers

Answer:

D. Task group

Explanation:

Task groups form to accomplish a specific task.

Answer:

D task group

Explanation:

Dragon makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first month after sale; and 10% are collected in the second month after sale. If sales for June, July, and August were $120,000, $160,000, and $220,000, respectively, what were the firm's budgeted collections for August and the company's budgeted receivables balance on August 31?

Answers

Answer: $174000

Explanation:

The firm's budgeted collections for August and the company's budgeted receivables balance on August 31 would be calculated as:

= (30% × $220,000) + (60% × $160,000) + (10% × $120,000)

= (0.3 × $220,000) + (0.6 × $160,000) + (0.1 × $120,000)

= $66000 + $96000 + $12000

= $174000

Other Questions
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