Answer:
YTM 5.2% present value: $1,023.1644
YTM 1% present value: $1,427.2169
YTM 8% present value: $830.1209
YTM 8% present value: $515.7617
Explanation:
YTM we will calculate the present value of the coupon payment
andthe maturity at each YTM rate given:
The coupon payment present value will be the present value of an ordinary annuity
Coupon payment 28 (1,000 x 2.75%)
time 20 (10 years x 2 payment per year)
rate 0.026 (YTM over 2 as the payment are semiannually)
PV $424.6800
The present value of the maturity will be the present value of a lump sum:
Maturity 1,000.00
time 20.00
rate 0.026
PV 598.48
PV c $424.6800
PV m $598.4843
Total $1,023.1644
Now, we will calculate changin the YTM the concept and formulas are the same, just the rate is diffrent:
<u>If YTM = 1% </u>
PV c $522.1540
PV m $905.0629
Total $1,427.2169
<u>If YTM = 8%</u>
PV c $373.7340
PV m $456.3869
Total $830.1209
<u>If YTM = 15%</u>
PV c $280.3485
PV m $235.4131
Total $515.7617
The unemployment rate will be of 10% of the economy. We can only have in mind the Million people who are actively seeking work in here which is in itself what is taken into account when talking about economy's unemployment rate. Remember also that the unemployment rate that is consistent with full employment known as the natural rate of unemployment.
Answer:
The unstated assumptions in the problems given is that the company may require more units of aluminium and steel, which would allow for producing more bicycles.A linear programming model cannot account for this.
Explanation:
Linear programming model: this is an algebraic description of te objectives to be minimized and the constraints to be satisfied by the variables.
Answer:
Check the explanation
Explanation:
Advance collection of tickets 56700000
seating capacity of stadium 108000
no of games in a season 5
total ticket sold during the season 540000
Average price per individual game ticket
total advance collection/
noof tickets sold during the season 155
average price per season ticket 155*5 775
2- cash debit 56700000
credit unearned revenue 56700000
3- unearned revenue debit 16740000
credit earned ticket revenue 16740000
Answer:
4.96%
Explanation:
In order to determine the component after-tax cost of debt first we need to compute the before tax cost of debt by applying the RATE formula which is to be shown in the attachment below:
Given that,
Present value = $1,155
Future value or Face value = $1,000
PMT = 1,000 × 8.25% ÷ 2 = $41.25
NPER = 40 years × 2 = 80 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
1. The pretax cost of debt is 3.54% × 2 = 7.08%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.08% × ( 1 - 0.30)
= 4.96%
