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Harrizon [31]
1 year ago
10

Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, h

ave 12 years remaining to maturity, and have a required rate of return of 10 percent. (LG 3-5) a. The bond has a 6 percent coupon rate. b. The bond has a 8 percent coupon rate.
Business
1 answer:
Mila [183]1 year ago
3 0

Answer:

the bonds' current market value = PV of face value + PV of coupon payments

a. The bond has a 6 percent coupon rate.

PV of face value = $1,000 / (1 + 5%)²⁴ = $310.07

PV of coupon payments = 30 x 13.799 (PV annuity factor, 5%, 24 periods) = $413.97

bond's market value = $724.04

b. The bond has a 8 percent coupon rate.

PV of face value = $1,000 / (1 + 5%)²⁴ = $310.07

PV of coupon payments = 40 x 13.799 (PV annuity factor, 5%, 24 periods) = $551.96

bond's market value = $862.03

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Which of the following suggestions for integrating graphics in a report is the most accurate?
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Answer: B. Mention the graphic in the text of the report.

The text of the report should describe or discuss the justifications of the graphics.

Explanation:

Graphics should be included inside the report, rather than only in the appendix, if they are important for discussions and presentations in the report.

Graphics can be created in colors in the report, especially if the reports are to be printed in colors version. However, if the report is to be printed in black and white only, the graphics should also be in black and white only so that the printing resolution is clear.

Titles of the graphs, x-axis and y-axis, together with the range should be clearer shown together with the graphics for the readers' understanding.

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2 years ago
A streaming music site changed its format to focus on previously unreleased music from rising artists. the site manager now want
pishuonlain [190]

Answer : The p-value of 0.0743 is greater than alpha at 0.05; so we fail to reject the null hypothesis and conclude that there is no significant difference in the number of unique users before and after a change in policy.

In this question, the manager wants to know if the number of users has changed.

So, the null and alternate hypotheses are:

Null Hypothesis: {H_{0}}: \mu = 131,520

Alternate Hypothesis : {H_{1}}: \mu \not\equiv 131,520

Type of test : Two-tailed test

The level of significance is 95%

We can calculate alpha (α) as follows:

\alpha = 1- Confidence Level

\alpha = 1- 0.95
\alpha = 0.05

The p value = 0.0743.

We use the following rules to arrive at a conclusion when p-values and alpha is given:

If p-value < \alpha, reject the null hypothesis

If p-value \geq \alpha, we don't reject the null hypothesis.

Since the p-value is greater than alpha, we don't reject the null hypothesis.

4 0
2 years ago
During 2016, Monty Corporation spent $156,960 in research and development costs. As a result, a new product called the New Age P
MAXImum [283]

Answer:

The entries during 2016 are as follows:

- Intangible asset (R&D)  $156960

                                      Cash  $156960

- Patent   $32400

             Cash  $32400

- Patent amortization expense  $3240

                                                Patent $3240

Explanation:

According to IAS 38 (Intangible assets), research and development costs should only be capitalized (recorded as intangible assets) when all of the following criteria is met.

<em>1- The entity intends to complete the development of research findings.</em>

<em>2- The costs of research and development can be reliably measured.</em>

<em>3- There are adequate resources available for the development and development has technical feasibility.</em>

<em>4- It's probable that future economic benefits will flow to the entity.</em>

Given the data in the question, all of the requirements are met under IAS 38 and hence the research and development costs are capitalized (recorded as an intangible asset). Secondly, the patent is also an intangible non-current asset.

The entries during 2016 are as follows:

- Intangible asset (R&D)  $156960

                                      Cash  $156960

- Patent   $32400

             Cash  $32400

- Patent amortization expense  $3240

                                                Patent $3240

Patent amortization is calculated by dividing the cost of patent upon it's useful life (i.e $32400÷10).

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zhenek [66]

Answer:

$3,927

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Manufacturing overhead rate = Overhead cost ÷ Machine hours

= 45,000 ÷ 100,000

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Bid price of job = Total manufacturing cost charged to school + Markup cost

= $2,805 + $1,122

= $3,927

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