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Tanya [424]
2 years ago
8

Signature Sweets, Inc. has 8 percent semiannual bonds outstanding with 15 years to maturity. The latest quote on these bonds is

109.16 percent of the face value. What is the yield to maturity
Business
1 answer:
Zepler [3.9K]2 years ago
8 0

Answer:

Yield to maturity is 7% annually

and 3.5% semiannually  

Explanation:

If a bond is held until maturity, the total return expected from the bond until maturity is known as Yield to maturity. It is considered as long term and expressed in annual term.

Yield to maturity = [ C + ( ( F - P ) / n ) ] / [ ( F + P ) / 2 ]

Where

C = Coupon payment = 100 x 8% = 8 annually = 4 semiannually

F = Face value = $100

P = Price of bond = $109.16

n = number of periods = 2 per year x 15 year = 30 periods

Yield to maturity = [ C + ( ( F - P ) / n ) ] / [ ( F + P ) / 2 ]

Yield to maturity = [ 4 + ( ( $100 - 109.16 ) / 30 ) ] / [ ( 100 + 109.16 ) / 2 ]

Yield to maturity = 3.69 / 104.58

Yield to maturity = 0.0353 = 3.53% = 3.5% semiannually ( rounded off to 1 decimal place) = 7% annually

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Shipments of Product X from a plant to a wholesaler are made in lots of 600. The wholesaler's average demand for X is 100 units
ozzi

Answer:

Option (B) is correct.

Explanation:

Given that,

Lot size = 600

Average demand per week = 100 units

Lead time = 4 weeks

Cycle inventory is determined by dividing the lot size by 2. It is calculated as follows:

= Lot size ÷ 2

= 600 ÷ 2

= 300 units

Pipeline inventories is determined by the product of average demand and lead time from plant to wholesaler.

Pipeline inventories:

= Average demand × Lead time

= 100 × 4

= 400 units

Hence, Total cycle + Pipeline inventories = 300 units + 400 units

                                                        = 700 units

Now, if the plant reduces its lead time from 4 to 2 weeks and lot size remains the same, then

Cycle inventory:

= Lot size ÷ 2

= 600 ÷ 2

= 300 units

Pipeline inventories:

= Average demand × Lead time

= 100 × 2

= 200 units

Hence, New Total cycle + Pipeline inventories = 300 units + 200 units

                                                                             = 500 units

6 0
2 years ago
The Golden Group is a group of luxury hotels that caters exclusively to high-end customers who form a small part of the market a
Mila [183]

Answer: Niche marketing.

Explanation:

Niche marketing involves a business aiming a product at a particular, often very small, segment of the market.

It anticipates consumers' needs and wants and can be clearly identified. It can be a local or small national market.

7 0
2 years ago
Read 2 more answers
Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $302,820, would have a useful life of 7 ye
Kruka [31]

Answer:

20%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow for year zero =-302,820

Cash flow each year from year one to seven = 84,000

IRR = 20%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

4 0
2 years ago
Vargas Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.77 direct labor
leva [86]

Answer:

11.20

Explanation: becuase it can be

3 0
2 years ago
First National Bank (FNB) has a reserve ratio of 20 percent, a required reserve ratio of 10 percent, and deposits of $1,000. If
Vadim26 [7]

Answer:

The correct answer is then it has required reserves of $110 and holds excess reserves of $190.

Explanation:

According to the scenario, computation of the given data are as follows:

Total deposit = $1,000 + $100 = $1,100

So, we can calculate the total reserve required by using following formula:

Total reserve required = 10% × Total deposit

= 10% × $1,100 = $110

And Previous excess = $100

Current access = $90

So, Excess reserve =  Previous excess +  Current access

= $100 + $90

= $190

5 0
2 years ago
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