The annual coupon rate is 2%, but coupons are paid semiannually. The yield to maturity was 1.85%. If the par value is $100,000, how much did you pay for this bond

Answers

Answer 1

Answer:

Hi the number of years to maturity  for this Bond is missing. I have tried to search for the  full question online but could not find it. However, I will help you get the technique to solve this problem.

The amount of money you pay for the Bond is its Present Value (PV) normally called Current Price of the Bond.

To calculate this, you should have the other remaining elements of the Bond which are : Coupon rate (PMT) , Period of payments within a year (P/YR), Yield To Maturity (YTM), Par Value (Future Value of Bond).

So assuming that the Bond in question matures in 5 years the calculation will be as follows :

Pmt = (1,000,000 × 2%) ÷ 2 = $10,000

Ytm = 1.85 %

Fv = $1,000,000

P/yr = 2

N = 5 × 2 = 10

Pv = ?

You would pay $1,007,132 for this bond


Related Questions

Mary orders a dress for $1,000. The designer sends the wrong size. Mary doesn't inspect the dress on arrival and therefore doesn't discover the nonconformity until the day before she is to wear it to her first board meeting as president of Tri-State Engineering. She calls the designer and sends the dress back, but it is lost in the mail. Mary's insurance would cover $400 of the loss. The designer's insurance would cover $900. Who is liable

Answers

Answer:

The Correct option is d.The risk is Mary's to the extent of $400

Explanation:

Based on the information given the person Who is liable is MARY reason been that we were told that MARY did not inspect the dress when she received it to check for any nonconformity and Secondly we were told that she calls the designer in which she sent back the dress BUT it was lost in the mail after her designer sents the wrong size to her which means that Mary's insurance would cover $400 of the loss.

Therefore The risk is MARY'S to the extent of the amount of $400

In what positive and negative ways has the Internet changed the conduct and coordination of global business?

Answers

Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft

Explanation:

The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways

Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.

Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.

Orchid provides quick project solutions. Clients send projects to Orchid via their web page and a employees develop the needed project solutions as quickly as possible. Orchid has five employees who do all of the solutions. On average, a project arrives once every 7 hours, with a standard deviation of 10.5 hours. Each project is assigned to one employee and that employee takes on average 30 hours to complete each project, with a standard deviation of 45 hours. How many uncompleted projects does Orchid have in the system on average at any given time?

Answers

Answer:

the uncompleted projects done in the system on average is 0.071

Explanation:

The computation of the uncompleted projects done in the system on average is shown below

Lq = λ^2 ÷ [µ (µ - λ)]

where,

λ = 7 hours

µ = 30 hours

So,

Lq = 7^2 ÷  [30 (30 – 7)]

= 49 ÷ [30 × 23]

= 0.071

hence, the uncompleted projects done in the system on average is 0.071

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

And, the same is to be considered

A company's_______ tells you how much money the company has left over after subtracting all expenses. *

a) Net Profit
b) Gross Profit
c) Revenue
d) Cost Of Goods Sold (COGS)​

Answers

Answer:

net profit

Explanation:

net profit is the money left after all cost are deducted

Answer:  

D: COGS

Explanation:  

A company's COGS tells you how much money the company has left over after subtracting all expenses

Compared with supermarkets, the product mix for vending machines is: __________.
a. the same
b. wider and deeper
c. wider and deeper
d. shallower and narrower
e. narrower and deeper

Answers

Answer:

d. shallower and narrower

Explanation:

Product width basically refers to how many different product lines are sold, and obviously a supermarket sells hundreds of product line, while a vending machine generally sells soft drinks or snacks, which is only 1 product line.

The product depth refers to the amount of products sold, and a supermarket is much larger than a vending machine so it can sell many more products.

Jacob distributed a survey to his fellow students asking them how many hours they'd spent playing sports in the past day. He also asked them to rate their mood on a scale from 000 to 101010, with 101010 being the happiest.

Answers

Answer:

whats the question

Explanation:

Answer:

the answer is A 1.5

Explanation:

Four years ago, Lyle Mercer was injured in a railroad accident and sued the railroad for damages. The jury required the railroad to pay $600,000 compensation for his physical injuries, $150,000 for lost wages during his long recuperation, and $1,000,000 punitive damages. How much of the $1,750,000 settlement is included in Lyle's gross income?

Answers

Answer and Explanation:

The amount that settled is as follows

The total amount is $1,750,000

Out of which

The amount of

= $1,000,000 + $150,000

= $1,150,000

This would be involved in the AGL of L and the $600,000 would not be involved in the gross income as the taxpayer got injured by the other party act

So, the same is to be considered

In a period when costs are declining and inventory quantities are stable, the lowest cost of goods sold would be reported by using the inventory method of

Answers

Answer:

LIFO

Explanation:

To record the lowest cost of goods sold, the ending inventory amount must be high. This would only be high in LIFO whish would not be affected by declining costs.

By using LIFO (Last in First Out) inventory valuation will be based on the value of the earliest goods purchased instead of latest goods purchased as in FIFO (First In First Out)

A firm plans to grow at an annual rate of at least 28%. Its return on equity is 43%. Suppose the firm has a debt-equity ratio of 1/4. What is the maximum dividend payout ratio it can maintain without resorting to any external financing? (Do not round intermedlate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Answers

Answer:

34.88%

Explanation:

the sustainable growth rate = return on equity x retention rate

retention rate = 1 - dividend payout rate

so,

sustainable growth rate = return on equity x (1 - dividend payout rate)

1 - dividend payout rate = sustainable growth rate / return on equity

1 - dividend payout rate = 28% / 43% = 0.65116279

1 - 0.65116279 = dividend payout rate

0.3488 = 34.88% = dividend payout rate

On July 1, Smith Company borrowed $430,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $64,083. What amount of interest expense will be included in the first annual payment?
a. $29,683
b. $34,400
c. $400,317
d. $43,000
e. $64,083

Answers

It should be e $64,083

Besides knowing the amount of sales, what other
information is required to calculate a return on
sales (ROS)?

Answers

Answer:

selling price, variable cost, fix cost

Explanation:

Sunland Company recorded operating data for its shoe division for the year. Sales$760000 Contribution margin240000 Total fixed costs90000 Average total operating assets250000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $30000, assuming fixed costs are held constant

Answers

Answer: 72%

Explanation:

ROI = Net Income/ Average Assets

Assuming Contribution Margin increases by $30,000;

= 240,000 + 30,000

= $270,000

Net income = Contribution margin - Fixed cost

= 270,000 - 90,000

= $180,000

ROI = 180,000 / 250,000

= 72%

A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000. When output is 4,000 units, Group of answer choices average variable cost is increasing. average total cost is increasing. average total cost is decreasing. average variable cost is decreasing.

Answers

Explanation:

i am just at class 10 comp and opt so i dont know about business

Quality circles have been used successfully to solve product defect problems in U.S. firms.
True
False

Answers

The answer is false happy holidays

As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the sameIf the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth)Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Answers

Answer:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) Multiplier is 3.30.

(c) Total impact on spending is $3,300.

Explanation:

(a) As the marginal propensity to consume (MPC) increases, the spending multiplier: Increases, decreases, stays the same.

In economics, the higher the MPC, the higher the spending multiplier.

Therefore, as the marginal propensity to consume (MPC) increases, the spending multiplier Increases.

(b) If the marginal propensity to consume is 0.70, then, assuming there are no taxes or imports, the multiplier is: (Note: round to the nearest tenth).

This can be calculated as follows:

Multiplier = 1 / (1 - MPC) = 1 / (1 - 0.70) = 1 / 0.30 = 3.33333333333333

Rounding to the nearest tenth, we have:

Multiplier = 3.30

(c) Given the multiplier that you calculated, what is the total impact on spending when there is a $1,000 increase in government spending?

Total impact on spending = Increase in government spending * Multiplier = $1,000 * 3.30 = $3,300

The spending multiplier rises as the marginal propensity to consume (MPC) rises. 3.30 is the multiplier. The total financial impact is $3,300.

What is the total impact on spending?

(a) The spending multiplier grows, declines, or remains constant when the marginal propensity to consume (MPC) increases.

The higher the MPC, the higher the spending multiplier in economics.

As a result, the spending multiplier rises as the marginal propensity to consume (MPC) rises.

(b) If the marginal propensity to consume is 0.70, the multiplier is: assuming no taxes or imports (Note: round to the nearest tenth).

Computation:

[tex]\text{Multiplier} = 1 / (1 - MPC) \\= 1 / (1 - 0.70) \\= 1 / 0.30 \\= 3.33333333333333[/tex]

If we round to the nearest tenth, we get: a 3.30 multiplier

(c) Given the multiplier you computed, what is the total impact on spending when government spending is increased by $1,000?

[tex]\text{Total impact on spending = Increase in government spending} \text{ x } \text{Multiplier}\\ = $1,000 \text { x } 3.30 = $3,300[/tex]

For more information about MPC, refer below

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Piper Pizzaâs pizza-and-sub deal is back! Any consumer who orders two pizzas will get a free meatball sub. Piper Pizzaâs promotion uses ____ to increase short-term sales.

Answers

Answer:

YUMMM

Explanation:

Pizza sounds good, sorry lol

Any consumer who orders two pizzas will get a free meatball sub. Piper Pizzas' promotion uses loyalty programs to increase short-term sales.

What type of promotion is a loyalty program?

Retailers and other companies who sponsor loyalty programs do so in an effort to draw and keep consumers by providing prizes, discounts, and other unique incentives. They are made to reward customers for their brand or shop loyalty and promote repeat business (hence the name). Usually, a consumer receives bigger benefits the more frequently they shop at the business and the more money they spend.

The purpose of loyalty programs is to reward customers for their continued patronage by providing benefits, discounts, or other unique incentives. Companies profit from loyalty programs not only by fostering client loyalty but also by receiving vital data on consumer spending patterns and the most tempting goods or offers. Retailers and other businesses provide loyalty programs as a strategy to draw in and keep consumers.

Learn more about the loyalty program, here:

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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%

Documents created with Calc are saved as which file extension?
A.
.com
B.
.odp
C.
.org
D.
.ods


Please select the best answer from the choices provided

A
B
C
D

Answers

Answer:

D. .ods

Explanation:

edge

A credit union is different from a bank mainly because

Answers

Answer:D:(A cooperative lending institution for a particular group.)

Explanation:

A credit union is different from a bank mainly because it is owned and controlled by its members, who are typically individuals with a common bond, such as belonging to a specific community or organization.

In the context of a credit union, a common bond refers to a shared characteristic or affiliation among its members, such as living in the same community, working for the same employer, or belonging to a specific organization.

This common bond serves as the basis for membership eligibility and participation in the credit union. It fosters a sense of community and cooperation among members, who collectively own and control the credit union.

The common bond principle promotes a more personalized and community-oriented approach to financial services, catering to the specific needs and interests of the members it serves.

Learn more about credit union here:

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You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy is _________.
A. $120
B. $1,000
C. $11,000
D. $12,000

Answers

Answer:

$11,000

Explanation:

One IBM March 20 put contract is purchased at a premium of $10

Therefore the maximum profit that will be gained from this strategy can be calculated as follows

= 100(120-10)

= 100(110)

= 11,000

Hence the maximum profit is $11,000

Chez Fred Bakery estimates the allowance for uncollectible accounts at 3% of the ending balance of accounts receivable. During 2018, Chez Fred's credit sales and collections were $125,000 and $131,000, respectively. What was the balance of accounts receivable on January 1, 2018, if $180 in accounts receivable were written off during 2018 and if the allowance account had a balance of $750 on December 31, 2018

Answers

Answer:

The balance of accounts receivable on January 1, 2018 is $31,180.

Explanation:

The following are given in the question:

Percentage of allowance for uncollectible accounts = 3%

Credit sales = $125,000

Collections = $131,000

Amount written off = $180

Therefore, we have:

Account receivable on 31 December 2018 * 3% = $750

Account receivable on 31 December 2018 = $750 / 3% = $25,000

Accounts receivable on 01 January 2018 = Account receivable on 31 December 2018 - Credit sales + Collections + Amount written off = $25,000 - $125,000 + $131,000 + $180 = $31,180

Therefore, the balance of accounts receivable on January 1, 2018 is $31,180.

Seventy farmers in Morgan County joined together to hire Rusty to spray their crops one time (with his cropduster plane). These farmers have formed a: _______

a. business trust.
b. cooperative.
c. franchise.
d. joint venture.

Answers

Answer:

d. joint venture.

Explanation:

A cooperative, business trust or a franchise are generally stable businesses that are formed to operate in the long run.

On the other hand, a joint venture occurs when different entities get together to do business and that can be a one time event only. In this case, Rusty was hired for spraying the fields one time only (one time event).

On January 1, 2016, Cobb Co. received, for the sale of a parcel of land, a ten-year note receivable having a face amount of $2,000,000 and a stated interest rate of 8% payable annually each December 31. The market rate of interest for this type of note is 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.46319 0.38554 Present value of an ordinary annuity of 1 for 10 periods 6.71008 6.14457

Answers

Answer: $‭1,754,211

Explanation:

8% of $2,000,000 will be payable every year for 10 years;

= 2,000,000 * 8%

= $160,000

The amount received from selling the land is;

= Present value of interest payable annually + Present value of Note

= (160,000 * Present value interest factor of annuity, 10 years, 10%) + (2,000,000 * present value interest factor, 10 years, 10%)

= (160,000 * 6.14457) + (2,000,000 * 0.38554)

= $‭1,754,211

On January 1, Jim Shorts Corporation issued $300 million face value bonds for $580 million. During the same year, $1,500,000 of the bond premium was amortized. On a statement of cash flows prepared by the indirect method, Jim Shorts Corporation should report: A) An addition to net income of $1,500,000. B) An investing activity of $580 million. C) A financing activity of $300 million. D) A deduction from net income of $1,500,000. g

Answers

Answer: a deduction from net income of $1,500,000.

Explanation:

Based on the statements provided in the question, it should be noted that Jim Shorts Corporation should report a deduction from net income of $1,500,000 on the statement of cash flows prepared by the indirect method.

It should be noted that the caah flow statement would start the accrual basis of the net income under an indirect method of the cash flow and then, all the non-cash items would either be added or subtracted in order for the reconciliation of account.

When Mia and Shane are planning their honeymoon, their travel agent tells them that if they buy a special package, their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of the use of
A) multiple-unit pricing.
B) bundle pricing.
C) prestige pricing.
D) price lining.
E) price packaging.

Answers

Answer: bundle Pricing

Explanation:

Bundle Pricing is a strategy that is used by companies whereby several products are all packages together for a lower price.

Here, we are informed that the special package for their trip to Paris will include meals, tickets to the theater, and a rental car in addition to airfare and a hotel. This is an example of bundle Pricing as the company can sell different products together at once.

A business is considering a cash outlay of $880,000 for the purchase of land, which it intends to lease for $200,000 per year. If alternative investments are available that yield a 15% return, the opportunity cost of the purchase of the land is:___________.
a. $102,000.
b. $132,000.
c. $200,000.
d. $175,000.

Answers

Answer:

b. $132,000

Explanation:

Opportunity cost is an economic term for expressing cost in terms of foregone alternatives. From the above, we can infer that the company is considering a cash outlay of $880,000 for the purchase of land which it could lease for $200,000 per year and the alternative investment would bring in return 15% yield.

It therefore means that the opportunity cost for the purchase of land would be;

= Initial cash outlay × yield returns

= $880,000 × 15%

= $132,000

The opportunity cost of the purchase of the land is $132,000

An appliance repair shop buys and uses about 4,212 fan motors annually. Holding cost is 27 dollars per motor per year, and ordering cost is 177 dollars per order. Determine the economic order quantity. Round your number to ZERO decimal point.

Answers

Answer:

15,251 units

Explanation:

The formula for Economic order quantity is;

EOQ = √2DS/H

Where,

D = Annual demand = 4,212

S = Ordering cost = $177

H = Holding cost = $27/4,212 = $0.00064102564

EOQ = √ 2 × 4,212 × $177 / $0.00064102564

EOQ = √ $1,491,048 / $0.00064102564

EOQ = √232603488.37

EOQ = 15,251 units

Chancellor Ltd. sells an asset with a $1 million fair value to Sophie Inc. Sophie agrees to make six equal payments, each to be paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. Compute the annual payments. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) $166,651. $203,351. $135,252. $191,852.

Answers

Answer:

$191,852

Explanation:

The computation of the annual payment is shown below

Given that

Loan Amount (P) = $1,000,000

Annual Interest Rate (r) = 6.00% per year

Loan Period (n) = 6 Years

Now

The Annual Lona Payment is

= [P × {r × (1 + r)^n}] ÷ (1 + r)^n - 1

= [$1,000,000 x {0.06 x (1 + 0.06)^5}] ÷ [(1 + 0.06)^6 - 1]

= $191,851.5363

= $191,852

Hence, the annual payment is $191,852

Terrapins has a bond issue outstanding with nine years remaining to maturity, a coupon rate of 10% with interest paid semi-annually, and a par value of $1,000. If the current market price of the bond issue is $814.45, what is the yield to maturity?

Answers

Answer:

the answer is $345.98.

Explanation:

hope it helps you

The Johnson Drum Company is planning to build a new factory. The purchase of the land, building the plant, and installation of equipment will take place over a 2-year period. The following are planned cash outflows:
Year Cash Outflow 0 $3,500,000 1 $4,750,000 2 $6,100,000
Johnson Drum's cost of capital is 14%, and its marginal tax rate is 35%. What is the NINV measured in present value terms today?

Answers

Answer:

$12,356,650

Explanation:

Calculation for What is the NINV measured in present value terms today

Year Cash Outflow PVIF PV of NINV

Year 0 $3,500,000 * 1.000 = $3,500,000

Year 1 $4,750,000* 0.877 =$ 4,165,750

Year2 $6,100,000* 0.769 =$4,690,900

Total NINV=$12,356,650

(3,500,000+4,165,750+=4,690,900)

Therefore the NINV measured in present value terms today will be $12,356,650

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