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Hoochie [10]
2 years ago
3

A bond that pays interest semiannually has a coupon rate of 5.02 percent and a current yield of 5.29 percent. The par value is $

1,000. What is the bond's price?
Business
1 answer:
Eddi Din [679]2 years ago
6 0

Answer:

Bond's price is $948.96

Explanation:

Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:

According to given data

Coupon payment = $1,000 x 5.02% = $50.2

Current Yield = 5.29%

Price of the Bond = Coupon Payment  / Current Yield

Price of the Bond = $50.2 / 5.29%

Price of the Bond = $50.2 / 0.0529

Price of the Bond = $948.9

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Nash Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost
valentinak56 [21]

Answer:

a. $610,080

b. $267,002.67

Explanation:

a. Weighted interest for short and long term loan.

Interest on short term loan = 10% * 2,100,000 = $210,000

Interest on long term loan = 11% * 1,500,000 = $165,000

Weighted interest = (210,000 + 165,000) / (2,100,000 + 1,500,000)

= 10.42%

Avoidable interest = Construction interest + ((Weighted-average amount of accumulated expenditures - Construction cost) * Weighted interest )

= (3,000,000 * 12%) + ((5,400,000 - 3,000,000) * 10.42%)

= $610,080

b. Capitalized cost = Cost to complete office and warehouse + Avoidable interest

= 7,800,000 + 610,080

= $‭8,410,080‬

Salvage value and Useful life are not included so assuming a salvage value of $400,000 and 30 years using a straight line depreciation, depreciation is;

Depreciation = ‭(8,410,080‬ - 400,000 ) / 30

= $267,002.67

6 0
2 years ago
Insurance premiums are calculated by analyzing clients’ potential level of risk. Which of the following drivers would most likel
siniylev [52]

Answer:

The correct answer is letter "B": Experienced driver with a good driving record.

Explanation:

Insurances do take into consideration the level of risk individuals represent according to the type of coverage they apply for. While talking about car insurance, <em>an experienced driver with a good driving record represents a minimum risk for the company, thus, the individual will likely pay a lower premium than someone who has had several vehicle accidents with a negative driving history.</em>

7 0
2 years ago
Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is​ $1 per​ can,
FinnZ [79.3K]

Answer:

Option (B) is correct.

Explanation:

The utility maximization point for a consumer is as follows:

\frac{MU_x}{P_x}=\frac{MU_y}{P_y}

It is given that,

price of Pepsi(x) =​ $1 per can

price of a hamburger(y) =​ $2

Marginal utility from Pepsi =​ 4

Marginal utility from hamburgers = 6

Hence,

\frac{4}{1}>\frac{6}{2}

4 > 3

Therefore, it can be seen that the consumer's utility is not maximized at this point.

Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.

So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.

6 0
2 years ago
The Dahlia Medical Center has 30 labor rooms, 15 combination labor and delivery rooms, and 3 delivery rooms. All of these facili
madam [21]

Answer:

The combination Labour delivery room

Explanation:

Utilization refers to the degree by which available resource                                                                

is being used.

It is given by the ratio of total input to total output

The attached file shows a complete solution

6 0
2 years ago
Inventory records for Herb's Chemicals revealed the following:
antiseptic1488 [7]

Answer:

Inventory= $5,040

Explanation:

Giving the following information:

March 1, 2021, inventory: 1,000 gallons @ $7.20 per gallon = $7,200

Purchases:

Mar. 10 600 gals @ $ 7.25

Mar. 16 800 gals @ $ 7.30

Mar. 23 600 gals @ $ 7.35

Sales:

Mar. 5 400 gals

Mar. 14 700 gals

Mar. 20 500 gals

Mar. 26 700 gals

Total units= 3,000

Total sales= 2,300

Ending inventory= 700 units

LIFO (last-in, first-out)

Inventory= 700*7.20= $5,040

8 0
2 years ago
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