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pickupchik [31]
1 year ago
10

The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price o

f the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond
Business
2 answers:
stiv31 [10]1 year ago
6 0

Answer:16.67%

Explanation:

Given the following;

Bond price = $1000

Coupon rate = $150 (amount of interest paid on the bond annually)

Calculating the yield rate of the bond to a new buyer.

The price of the bond has fallen by $100

Therefore,

New bond price = $1000 - $100 =$900

Therefore, the yield rate is given by;

(Coupon value/bond price) × 100

(150/900) × 100

1.667 × 100 =16.67%

Lelu [443]1 year ago
4 0

Answer:

16.7 percentage

Explanation:

bond price = $1000 - $100 = $900

fixed amount / bond price * 100 = IR

(150/900) * 100 = 16.7%

The reason for this equation is that interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal.

originally the price if the bond is $1000 which later falls by $100, so that leaves us to a $900 bond rate.

The interest rate is typically noted on a annual basis known as the annual percentage rate (APR).

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A company uses an activity-based costing system composed of three processes: tooling, processing, and resources. The company has
Serga [27]

Answer:

d. $520,000

Explanation:

Provided information,

Activities                         Cost                  Cost drivers

Tooling                      $500,000                  25 setups

Processing               $2,000,000                20,000 direct labors

Resources                  $800,000                 40,000 square feet

Rate per activity

Tooling = \frac{500,000}{25} = $20,000 per setup

Processing = \frac{2,000,000}{20,000} = 100 per labor hour

Resources = \frac{800,000}{40,000} = 20 per feet.

Information for Product D

3 setups = 3 \times $20,000 = $60,000

3,000 direct labor hours = 3,000 \times $100 = $300,000

8,000 square feet = 8,000 \times $20 = $160,000

Total overhead cost assigned = $60,000 + $300,000 + $160,000 = $520,000

3 0
1 year ago
TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
valentina_108 [34]

Answer:

$1.3 per share

Explanation:

Data provided in the question:

Number of shares outstanding of TJ = 2,500

Market price = $16.70

Number of shares outstanding of Corner Grocery = 3,000

Price per share of Corner Grocery = $22.50

Cost of acquiring TJ's share = $45,000

Now,

Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding

= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500

=  [ $45,000 - $41,750 ] ÷ 2,500

= $3,250 ÷ 2,500

= $1.3 per share

4 0
1 year ago
.
Lesechka [4]

Answer:

This is the sample answer

Explanation:

After a natural disaster, such as a major hurricane, there is increased demand for gasoline, lumber, bottled water, clothing, and other essential goods as people try to replace and rebuild what was lost. At the same time, the supply of these goods likely decreases because of disruptions to factories and transportation. Under normal market conditions, producers would raise their prices at the first sign of trouble, both to offset their own losses from the disaster and to obtain optimal profits.

However, people who have lost everything need to start rebuilding as soon as possible at a price they can afford to pay. The sooner the community is rebuilt and back to normal, the sooner the local economy will return to normal for both consumers and producers. For this reason, I think the government should introduce price ceilings on essential goods during a disaster. Many people would not be able to buy the goods they need without price ceilings. Although producers lose out on maximizing their profits, their actual losses are limited because they are allowed to raise prices to cover production and transportation costs driven up by the disaster.

Because citizens benefit so greatly from them, I think emergency price ceilings are beneficial to the economy as long as producers do not suffer significant losses from them.

6 0
2 years ago
The lag problem associated with fiscal policy is due mostly to Group of answer choices the time it takes for changes in governme
Vera_Pavlovna [14]

Answer:

the fact that business firms make investment plans far in advance.

Explanation:

Usually businesses make investment plans years in advance. Imagine if a business plans to open a new factory, just the actual building of the facility may take over a year, plus the time it needs to set up machinery and start production. All that plus the time the company needed to analyze the project plus the time needed to get the money necessary to start the investment.

4 0
1 year ago
Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
Elza [17]

The answer is marginal revenue (MR) curve above $22.

Explanation:

Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.

Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.

Economic profit = account profit = Opportunity profit

Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.

3 0
2 years ago
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