A bond was issued three years ago at a price of $1,050 with a maturity of six years, a yield-to-maturity (YTM) of 6.50% compounded semi-annually, and a face value of $1,000 with semi-annualy coupons. What is the price of this bond today immediately after the receipt of today's coupon if the YTM has risen to 7.75% compounded semi-annually
Answers
Answer:
$967.20
Explanation:
the YTM formula = {coupon + [(face value - present value)/time]} / [(face value + present value)/2]
to determine the coupon rate we fill the equation with the known factors:
0.065 = {coupon + [(1,000 - 1,050)/12]} / [(1,000 + 1,050)/2]
0.065 = (coupon - 41.67) / 1,025
66.625 = coupon - 4.167
coupon = 66.625 + 4.167 = $70.792
three years later, the YTM = 7.5%, what is the PV? Again we use the YTM formula:
0.0775 = {70.792 + [(1,000 - x)/6]} / [(1,000 + x)/2]
0.0775(500 + 0.5x) = 70.792 + 166.67 - 0.1667x
38.75 + 0.03875x = 237.462 - 0.1667x
0.20545x = 198.712
x = 198.712 / .20545
x = $967.20
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Answers
Answer:
The amount in Bob's account is $26320.516
Explanation:
The total amount saved each month for the down payment (A ) = $315
The interest rate per month (r ) = 0.41 %
Number of years (n ) = 6 years
Below is the calculation to find the total amount in Bob’s account. Here, we will take the number of compounding period as 72 because the interest rate is monthly compounded and there are 72 months in 6 years.
B) income
C) discount. price.
E) breakeven quantity.
Answers
Answer:
D. Price
Explanation:
Price is the amount that is paid by the buyer to the seller in the purchase of the product. And it also deals in exchange for a product which we called barter. The more or less amount while exchange the product is also known as price
It is a measure of an item.
According to the given situation, the most appropriate option is d. as it says that the seller is willing to accept in a given time and in given circumstances that means he is ready for negotiation.
Answers
Answer:
2.64%
Explanation:
A = P(1 + r)^n
A = $12,000
P = $10,000
n = 7 years
12,000 = 10,000(1 + r)^7
(1 + r)^7 = 12,000/10,000 = 1.2
(1 + r)^7 = 1.2
1 + r = (1.2)^1/7
I + r = 1.0264
r = 1.0264 - 1 = 0.0264
r = 0.0264 × 100 = 2.64%
Answers
Factory rent -$ 3,130- Product - MOH - Fixed
Company advertising- 1,060- Period - Variable
Wages paid to assembly workers -30,500- Product - DL - Variable
Depreciation for salespersons’ vehicles- 2,200- Period - Fixed
Screws- 535- Product - DM - Variable
Utilities for factory -845-Product - MOH - Variable
Assembly supervisor’s salary -3,580- Product - MOH - Fixed
Sandpaper- 185- Product - MOH - Variable
President’s salary -5,180- Period - Fixed
Plastic tubing- 4,050- Product - MOH - variable
Paint -285- Product - DM - Variable
Sales commissions- 1,350- Period - Variable
Factory insurance- 1,170- Product - MOH - fixed
Depreciation on cutting machines- 2,000- Product - MOH - Fixed
Wages paid to painters -7,550- Product - DL - Variable
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer would have production costs that include- Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
- Variable cost is a corporate expense that changes in proportion to production output.
- Fixed cost is a cost that does not change with an increase or decrease in the number of goods or services produced or sold.
To know more about the variable costs, and the fixed cost, refer to the link below:
Answer:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
- Variable cost is a corporate expense that changes in proportion to production output.
- Fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
In this exercise:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
(B) manages transportation and warehousing functions.
(C) consumes about one-half of every dollar spent on products in the United States.
(D) links producers to other marketing intermediaries.
(E) directs the flow of products from producers to customers.
Answers
Answer:
Option E
Explanation:
In simple words, A marketing channel refers to the individuals, organizations, and practices that are required to complete the sale of commodities from the point of manufacturing to the points of consumption.
It is the manner in which products reach the final-user, the consumer; and is also regarded as a method of delivery. A communication platform is a valuable management tool and is essential to the creation of an efficient and well-prepared marketing strategy.
Thus, from the above we can conclude that the correct option is E.
b. The amount of depletion deducted from revenue during 2013 is $3,840,000.
c. The amount of depletion deducted from revenue during 2013 is $2,000,000.
d. The mine is classified as an intangible asset with in indefinite life and is not amortized.
Answers
Answer:
The correct answer is B.
Explanation:
Giving the following information:
In April 2013, Sparkle Enterprises purchased the Crimson Mine for $18,000,000. The mine is estimated to contain 500,000 tons of ore with a residual value of $2,000,000 after mining operations are completed. During 2013, 120,000 tons of ore were removed from the mine and sold.
Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced
Annual depreciation= (16,000,000/500,000)*120,000= $3,840,000