Compute the price of a 6.3 percent coupon bond with 15 years left to maturity and a market interest rate of 7.0 percent. (Assume interest payments are semiannual.) (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Answers

Answer 1

Answer:

Price of the Bond = $935.63

Explanation:

N = 15 x 2 = 30

I/Y = 7.0%/2 = 3.5%

PMT = 6.3% x 1000 / 2 =  31.5

FV = 1000

Using the Ms Excel Function

Price of the Bond = PV(N, I/Y), PMT, FV)

Price of the Bond = PV(30, 3.5%,  31.5, 1000)

Price of the Bond = $935.6278411

Price of the Bond = $935.63


Related Questions

why is digital presence is important
Give 3 reasons
I will give brainliest answer

Answers

Answer:

1.)A “digital presence” simply refers to how your business appears online; it's what people find when they search for your business or company on the internet. Digital presence includes content that you control, like your website and social media profiles, but also content that you don't control, such as online reviews.

2.)Job Security:This may seem like it should go without saying, but keeping a professional online presence is very important to keep your job! Your employers need to know that you are not going to hurt the brand and image of the company. ... Then keeping your online presence professional is key.

3.)The Importance of Having an Online Presence is Crucial Now More Than Ever. During this pandemic, it is critical businesses must be online. Having an online presence can help you build an audience, connect with your customers, and keep them updated on your day to day activities, as well as hours of operation.

Andre is a new product designer for a restaurant supply company. Andre therefore works in a ________ department.
A) functional
B) service
C) line
D) matrix
E) staff

Answers

Answer:

Option C: line

Explanation:

An organization always has a functional structure. Its structure are group into sectors or structure based on specific areas, such as finance, or marketing and others.

A line department is a part of organization structure that is responsible for an organization core work such as production and sales, and others.

Product designers are simply said to be individuals who have design skills or knowledge and therefore uses it along with their technical know-how/knowledge to develop or improve the outlook(way) that already-made (existing) products work and look, and/or make them at a lower cost.

They must have technical and human-centered design and also be actively involved in the designing process of a new products line.

What is the value of a stock that is expected to pay a constant dividend of $2 per year if the required return is 15%

Answers

Answer:

the value of the stock is $13.33 per share

Explanation:

The computation of the value of the stock is shown below:

The Value of the stock is

= Constant annual dividend ÷ required rate of return

= $2 ÷ 0.15

= $13.33 Per share

Hence, the value of the stock is $13.33 per share

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Assume you just deposited $1,000 into a bank account. The current real interest rate is 7.00% and inflation is expected to be 8.00% over the next year. What nominal interest rate would you require from the bank over the next year? How much money will you have at the end of one year? If you are saving to buy fancy bicycle that currently sells for $1,050, will you have enough money to buy it?

Answers

Answer:

a) The nominal interest rate that I would require from the bank over the next year is 15%.

b) At the end of one year, I will have $1,150.

c) If I am saving to buy a fancy bicycle that currently sells for $1,050, I will have enough money ($1,150) to buy it.  It will be costing $1,134  ($1,050 * 1.08) with inflation rate of 8% in one year's time.

Explanation:

The nominal interest rate (15%) is higher than the real interest rate (7%) when inflation is positive because the real interest rate is adjusted for inflation (at 8%).  The real interest rate is the rate without inflation while the nominal interest rate factors in the inflation rate.

By moving to Italy to work closely with fabric creators, Geoffrey B. Small is working to achieve:________

a. Planning integration
b. Supply chain integration
c. Strong product development processes
d. Integrated logistics

Answers

Answer:

The right approach is Option b (supply chain integration).

Explanation:

The integrated supply chain seems to be a large-scale organization strategic approach that brings however many chain features as possible into some kind of relatively close professional relationship amongst one another. The purpose is to promote responsiveness, manufacturing cost, but instead focused on waste reduction. Every connection throughout the chain advantages.

All three of those certain decisions are not linked to the example in the case given. So, option b is right.

A proposed new investment has projected sales of $564,000. Variable costs are 37 percent of sales, and fixed costs are $132,000; depreciation is $51,500. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected net income

Answers

Answer:

Projected net income $135,737.80

Explanation:

The computation of the projected net income is shown below:

Sales    $564,000

Less: variable cost (37% of sales) $208,680

Less: fixed cost $132,000

Less: depreciation $51,500

Earning before income and taxes $171,820

Less: tax rate at 21% -$36,082.20

Projected net income $135,737.80

Hence, the projected net income is $135,737.80

On March 2, Blue Ribbon sold $887,400 of merchandise to Lumberyard Inc. with terms 2/10, n/30. The cost of the merchandise sold was $571,700. Lumberyard Inc. pays the balance owed on March 11.

Required:
How much does Lumberyard pay on March 11?

Answers

Answer:

Payment will be =  $869652

Explanation:

The terms of the credit sale to Lumberyard were 2/10, n/30 which means that Lumberyard was entitled to receive a 2% discount if the payment is made within 10 days of purchase of merchandise while the total credit period was of 30 days. As Lumberyard has paid the balance owed on 11 March and within the discount period, the amount paid by Lumberyard and the discount received will be,

Discount received = 887400 * 0.02 = $17748

Payment will be = 887400 - 17748  =  $869652

A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment

Answers

Answer:

4 years

Explanation:

We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.

DATA

Amount borrowed = $635.52

future amount = $1,000

Interest rate = 12%

Time period (n) = ?

Solution

Amount borrowed = future amount x Present value factor (12%, n)

$635.52 = $1,000 x PV factor(12%, n)

0.63552 = PV factor(12%, n)

If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.

The Drogon Co. just issued a dividend of $2.96 per share on its common stock. The company is expected to maintain a constant 5 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity

Answers

Answer: 13.88%

Explanation:

The cost of equity can be used along with the variables given to calculate the price of a share using the Gordon Growth model so this can be remodeled to solve for the cost of equity.

Price of stock = (Dividend * (1 + growth rate)) / (cost of equity - growth rate)

35 = (2.96 * (1 + 5%)) / (cost of equity - 5%)

35 = 3.108 / (cost of equity - 5%)

(cost of equity - 5%) * 35 = 3.108

Cost of equity - 5% = 3.108 / 35

Cost of Equity = (3.108 / 35) + 5%

= 13.88%

A company purchases supplies on account for $2,200. Indicate the amount of increases and decreases in the accounting equation.

Answers

Answer:

Assets increase by $2200:  liabilities increase by  $2200

Explanation:

The accounting equation is expressed as below.

Assets = Owners Equity + Liabilities.

Making purchases on account means buying on credit. Purchasing Supplies on credit will increases the debts( liabilities) of the company by $2200.

Supplies will belong to the business; hence assets will increase by $2200

Beyoncé has more than 15 million followers. It is possible that she reached this number of real-people followers organically and over time. In contrast, there are companies that provide a service where Toto could have purchased a large number of ___________

Answers

Answer:

Bot/Spam.

Explanation:

In a case of this such a ghost/spam/bot is been put to place in the help in this follower earnings. This is said to be called social bots; they are often used in a lot of cases in helping to gain sales leads, followers, and drives money ultimately to the assigned follower. Bots of this kind are known to be algorithms used with these social media profiles to create dealings with other people's content. It is particularly seen to attracts engagement with the profile linked to the algorithm, from both real users and other bots.

These bots are seen to always seen to target users with some connection to whatever it is they are ultimately trying to sell.

The aggregate supply-aggregate demand model predicts that the short-run effects of a temporary but severe oil-cutoff would be:_____

Answers

Incomplete question.

Options;

a. A decrease in the price level and an increase in real output.

b. An increase in both the price level and real output.

c. An increase in the price level and a decrease in real output.

d. A decrease in both the price level and real output.

Answer:

c. An increase in the price level and a decrease in real output.

Explanation:

Remember, aggregate supply often refers to the total output of goods and services in an economy available for sale While aggregate demand refers to the total value of the money spent on the goods and services produced in an economy.

Note also, what this means is that as a result of the severe oil-cutoff, the supply of oil would reduce greatly, and with lower supply in the short-run; we would expect the price level to increase.

However, as the price level increases, in the short-run, there would be an immediate decrease in the real output of oil among producers.

Sledge Co. manufactures a product requiring 1.5 lbs. of raw material for each finished unit. The beginning inventory of raw materials in March was 5,000 lbs. The company wants an inventory of 2,500 lbs at the end of March. Production for March will be 4,000 units. How many lbs. of raw material must be purchased in March

Answers

Answer:

Purchases= 3,500lbs

Explanation:

Giving the following information:

Production= 4,000*1.5= 6,000 lbs

Beginning inventory= 5,000 lbs

Ending inventory= 2,500 lbs

To calculate the direct materials purchase, we need to use the following formula:

Purchases= production + desired ending inventory - beginning inventory

Purchases= 6,000 + 2,500 - 5,000

Purchases= 3,500lbs

Answer:

Sledge Co./

3,500 Ibs. of raw materials must be purchased in March.

Explanation:

a) Data and Calculations:

Purchases of raw materials:

Expected ending inventory =                     2,500 Ibs.

Production for March (4,000 x 1.5 Ibs.) =   6,000 Ibs.

Raw materials available for production =  8,500 Ibs.

Less beginning inventory =                        5,000 Ibs.

Purchases =                                                 3,500 Ibs.

b) The units to be purchase is the difference between raw materials expected to be available for production and the beginning inventory.  Since the expected ending inventory is 2,500 Ibs. and the units to be produced during March is 4,000 units, which will use 6,000 Ibs (4,000 * 1.5 Ibs.), therefore, the total units of raw materials required is 8,500 Ibs.  When the inventory of raw material is taken away, the difference is the Purchases of materials to be made during March.

Hildagard, an architect, earns $415,000 from her practice. She also receives $32,000 in dividends and interest from various portfolio investments. During the year, she pays $100,000 to acquire a 30% interest in a partnership that produces a $560,000 loss for the year. She has $20,000 of passive income from other sources. Compute Hildagard's AGI, assuming that:
a. She does not participate in the operations of the partnership. In this case, Hildagard's AGI is $ _________
b. She is a material participant in the operations of the partnership. In this case, Hildagard's AGI IS $ _________

Answers

Answer:

a) Hildagard's AGI = $415,000 + $32,000 = $447,000

b) Hildagard's AGI = $415,000 + $32,000 - ($560,000 x 30%) + $20,000 = $299,000

Explanation:

The maximum deduction for passive losses is $25,000 if your MAGI is lower than $100,000 and then it phases out completely if your MAGI is $150,000 or more.

Since Hildagard's income is much higher than $150,000, then she will not be able to deduct any passive losses (at least not this year). Passive losses will still offset any passive gains though.

If Hildagard materially participated in the partnership, then the losses can be deducted from her AGI.

Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability policy was $55,800 for 18 months, and the crop damage policy was $19,200 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021?

Answers

Answer:

The balance of Eve's Prepaid Insurance account as of December 31, 2021 is $28,200

Explanation:

Computation of prepaid Insurance

Insurance 1 ($55,800*6/18)       =  $18,600

Insurance 2 ($19,200*12/24)     =  $9,600

Total Prepaid Insurance               $28,200

What is INCOTERM DDP?

Answers

Answer:

DDP stands for Delivery Duty Paid, an international commerce term (Incoterm) used to describe the delivery of goods where the seller takes most responsibility.Explanation:

Sylvester Motors Inc. has the following balances at the end of the accounting period:

Items
Amount

$

Plant and Machinery 80,000
Notes Payable 5,000
short-term loan payable in 7 months 40,000
Taxes Payable 4,000
Mortgage 30,000
What is the total of the current liabilities of Sylvester Motors?

A.
$45,000
B.
$85,000
C.
$49,000
D.
$34,000

Answers

Answer:

C $49,000

Explanation:

none

Beckman Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $120,000. The asset is expected to have a salvage value of $15,500 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's book value on December 31, Year 2 will be:

Answers

Answer: 50400

Explanation:

- Straight-line rate= 100%/ 5 years= 20%

- Double declining Expense= 20% x 2= 40%

From Oct1 to Dec 31 is 9 months/ 12 months a year

- Depreciation Expense year 1= $120000x 0.4x 9/12= $36000

- Book value year 1= beginning year 2= $120000-$36000= $84000

- Book value year 2= $84000- ($84000x0.4)= $50400

The asset is valued at $60,000 at the end of year 2 December by using the asset depreciated on the double-declining-balance method.

What is Depreciation?

Depreciation is allocated to charge a reasonable percentage of the depreciable value throughout each accounting period for the asset's anticipated useful life.

Given,

Purchase Value = $120,000 ( On October 1)

Expected Life = 5 Years

Salvage Value = $15,500

Required to calculate asset value at the End of Year 2  =?

Depreciation Rate = Book Value x 2 divided by Life of Asset

                               = $120,000 x 2/5 = $48,000

Depreciation Rate  = 48,000 x 100/ 120,000 = 40%

Book Value of Year 1 = 120,000 - 120,000 x 40% x 3/12 = $108,000

Book Value for end Year 2 = $108,000 - 120,000 x 40% =  $60,000.

Thus, the Book value of the asset at end of year 2 is $60,000.

Learn more about Depreciation here:

https://brainly.com/question/15085226

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PLEASE HELP!

Your family purchased new living room furniture on credit at the store, which is a simple interest loan. If your family paid $300.00 in interest on the principal of $1,000.00
over 5 years, what was the rate of the loan?
1.) 6%
2.) 8%
3.) 4%
4.) 2%

Answers

6 times 5 is 30 the answer would be 6%

A company sells a plant asset which originally cost $354000 for $124000 on December 31, 2018. The Accumulated Depreciation account had a balance of $146000 after the current year's depreciation of $39000 had been recorded. The company should recognize a

Answers

Answer:

d. $45.000 loss on disposal.

Explanation:

a. $84000 gain on disposal. b. $84000 loss on disposal. c. $230000 loss on disposal. d. $45.000 loss on disposal.

Book Value on the Date of sale = Cost - Accumulated Depreication -Current year Depreciation

Book Value on the Date of sale = $354,000 - $146,000 - $39,000

Book Value on the Date of sale = $169,000

Gain (Loss) on disposal of the Asset= Selling Price - Book Value

Gain (Loss) on disposal of the Asset = $124,000 - $169,000

Loss on disposal of the Asset = $45,000

This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been increasing the dividends by 15 percent each year. How much are you willing to pay to purchase stock in this company if your required rate of return is 16 percent?

a. $7.87
b. $207.40
c. $36.60
d. $6.69
e. $280.60

Answers

Answer:

P0 = $280.60

Option e is the correct answer.

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)

Where,

D0 is the dividend today or paid recentlyD0 * (1+g) is dividend expected for the next period /year g is the growth rate r is the required rate of return  

P0 = 2.44 * (1+0.15) / (0.16 - 0.15)

P0 = $280.60

Pharoah Corp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $441.46. What is the yield to maturity on these bonds?

Answers

Answer:

12.391%

Explanation:

The yield to maturity on the seven-year zero coupon bond can be determined using the present value below:

PV=FV/(1+r)^n

PV=current price=$441.46

FV=face value at redemption=$1000

r=unknown yield to maturity

n=duration of the zero coupon=7 years

441.46=1000/(1+r)^7

1000/441.46=(1+r)^7

divide index by 7 on both sides

( 1000/441.46)^(1/7)=1+r

1.123905524 =1+r

r=1.123905524 -1=12.39%

What is the distinctive competency Toyota appears to be hoping to achieve by investing in Uber Technologies?

a. Basic factors of production
b. Intellectual property
c. Organizational architecture
d. Resources

Answers

Answer:

b. Intellectual property

Explanation:

Toyota is investing in Uber a car hailing service company.

Uber has cutting edge technology that makes it stand out from other car hailing services.

Toyota wants to have a part of this technology in order to improve on their cars and make them stand the test of time with regards to customer satisfaction.

To do this Toyota invested $500 million in Uber and in exchange they have access to Uber's intellectual property.

On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:

I need help with the analysis part. Thank you!

Answers

Answer:

first part

Return on equity = net income / equity =

net income = total revenue - expenses = $66,500 - $42,700 (salaries) - $6,900 (utilities) - $8,000 (supplies) - $1,675 (depreciation) - $2,700 (taxes) = $4,525

equity = $153,200 (Dec. 31 balance) + $42,000 (new stocks issued) - $20,000 (treasury stocks) - $3,620 (dividends) + 17,600 (treasury stocks sold) + $4,525 (net income) = $193,705

ROE = $4,525 / $193,705 = 2.34%

The company is less profitable than other companies in the same industry.

second part

total stocks outstanding = 18,100

third part

EPS for January = $4,525 / 18,100 = $0.25

EPS for January is higher than last year's average

On January 1, 2016, Horton Inc. sells a machine for $23,000. The machine was originally purchased on January 1, 2014 for $40,000. The machine was estimated to have a useful life of 5 years and a residual value of $0. Horton uses straight-line depreciation. In recording this transaction:

Answers

Answer:

The entry to record this transaction will be,

Accumulated depreciation     16000

Cash                                          23000

Loss on disposal                      1000

    Machine                                      40000

Explanation:

The straight line method of depreciation charges a constant depreciation expense throughout the useful life of the asset. The formula to calculate depreciation expense per year under this method is,

Depreciation expense per year = (Cost - Residual value) / Estimated useful life of the asset

Depreciation expense per year = (40000 - 0) /  5  = $8000 per year

The net book value of the machine on 1 January 2016 = 40000 - (8000 * 2)

NBV =  $24000

As the machine was sold for $23000, the loss on disposal will be,

Loss on disposal = 23000 - 24000 = -1000 or $1000 loss

Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?

Answers

Answer:

6.89 years

Explanation:

The discounted payback period can be calculated by using the following table

Year        Cash flows                PV(13%)             Cumulative Cash flows

0               (70000)                    (70000)                           (70000)

1           16000                    14159.29                       (55840.71)

2           16000                    12530.35                      (43310.36)

3           16000                       11088.80                      (32221.56)

4           16000                        9813.10                        (22408.46)

5           16000                        8684.16                        (13724.30)

6           16000                         7685.10                       (6039.20)

7           16000                          6800.97                         761.77

8           16000                          6018.56                       6780.33

Discounted Payback = 6 years + 6039/ 6801

Discounted Payback = 6.89 years

Which of the following is a tertiary ratio that drives protability?

Answers

Answer:

Explanation:

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your firm is considering an investment that will cost $920 000 today, what is the investment's net present value

Answers

Answer:

The correct option is d. $192,369.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Your firm is considering an investment that will cost $920,000 today. the investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. the discount rate that your firm uses for projects of this type is 11.25%. what is the investments net present value?

a. $378, 458

b. $540,000

c. $112,583

d. $192,369

The answer to the question is now provided as follows:

Net present value (NPV) is calculated by deducting the present value of cash outflows from the present value of cash inflows over a period of time.

Note: See the attached excel file for the calculation of the net present value (NPV).

From the attached excel file, we have:

r = Discount rate = 11.25%

Net present value (NPV) = 192,369

Therefore, the correct option is d. $192,369.

Curtis invests $700,000 in a city of Athens bond that pays 9.00 percent interest. Alternatively, Curtis could have invested the $700,000 in a bond recently issued by Initech, Incorporated that pays 11.00 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond?

Answers

Answer:

$14,000

Explanation:

Calculation for How much implicit tax would Curtis pay on the city of Athens bond

Using this formula

Implicit tax=(Amount invested*Initech Interest rate)- (Amount invested* Athens bond Interest rate)

Let plug in the formula

Implicit tax=(11%*$700,000)- (9%*$700,000)

Implicit tax=$77,000-$63,000

Implicit tax=$14,000

Therefore the implicit tax that Curtis would pay on the city of Athens bond will be $14,000

Charlie is at the top of her company's organization chart. Which of the following is most likely to be her job title?

Answers

Her job title is to be a CEO
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