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MrRa [10]
1 year ago
12

High noon sun, inc. has a 5%, semiannual coupon bond with a current market price of $988.52. the bond has a par value of $1,000

and a yield to maturity of 5.29%. how many years is it until this bond matures?
Business
1 answer:
9966 [12]1 year ago
5 0

The answer is 4.5 years

Given : semi annual bond

current market price : $988.52

par value : $1,000

maturity : 5.29%

PMT = 5% x $1000 / 2 = $25,

PV = $988.52,

FV = $1000, and

Int/half a year = 5.29%/2 = 2.645%.

Solving for N = 9 (semi annual periods).

9/2 = 4.5.

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Mikes Inc. has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.85 Direct labor $ 3.60 Var
marshall27 [118]

Answer:

Marginal cost: $13.70

Missing question:

Additional cost from increasing their output by one unit.

Explanation:

The company will inccur only the variable cost as the fixed cost are within the relevant range:

Direct materials $ 6.85

Direct labor $ 3.60

Variable manufacturing overhead $ 1.25

Sales commissions $ 1.50

Variable administrative expense $ 0.50

Total variable cost: $13.70

producing an additional unit will genrate marginal cost for $13.70

4 0
2 years ago
Suppose avon and nova stocks have volatilities of 50% and 25%, respectively, and they are perfectly negatively correlated. what
kirill115 [55]
I just got home and so he can get me to work on that the house and he can do it for me tomorrow and we can go to do something fun and do it for me tomorrow or
4 0
2 years ago
According to PCN analysis, which process region includes process steps in which one participant is acting on another participant
mamaluj [8]

Options:

A. Independent processing

B. Surrogate Interaction

C. Direct interaction

D. Resource processing

E. Process domain Interaction.

Answer:B. Surrogate Interaction

Explanation:

PCN(preassigned control number) PROGRAM is a program system designed to allow the Library of Congress to assign control numbers in advance of a publication to those titles which may be included to collections of materials in the Library. PCN number is only assigned to publishers in the United States of America.

Surrogate Interaction is a type of Interaction taking place in a PCN program where there are no direct interaction.

3 0
2 years ago
You are considering investing in a security that matures in 10 years with a par value of $1,000. During the first five years, th
Katarina [22]

Answer:

$1,060.75

Explanation:

the yield to maturity of the second bond is to 4% semiannual or 8.16% effective annual rate.

so we have to calculate the quarterly interest rate that yields an effective annual rate of 8.16%:

0.0816 = (1 + i)⁴ - 1

1.0816 = (1 + i)⁴

⁴√1.0816 = ⁴√(1 + i)⁴

1.0198 = 1 + i

i = 0.019804 = 1.9804%

now we must discount the first bond using that effective interest rate:

PV of face value = $1,000 / (1 + 4%)²⁰ = $456.39

PV of first 20 coupon payments = $20 x 16.38304 (PV annuity factor, 1.9804%, 20 periods) = $327.66

now we must find the value of the last 20 coupon payments but at the end of year 5 = $25 x 16.38304 = $409.58. Then we calculate the PV = $409.58 / (1 + 4%)¹⁰ = $276.70

the bond's current market value = $456.39 + $327.66 + $276.70 = $1,060.75

7 0
1 year ago
Many tire centers and new car dealers offer to fill tires with nitrogen instead of compressed air, often at a significantly incr
STatiana [176]

Answer and Explanation:

a) the advantage if using Nitrogen is that pure nitrogen does not leak out of tires as fast as oxygen do. Molecules of Nitrogen are much larger that those of Oxygen so nitrogen filled tires will remain inflates longer than air filled tires.

b) it is consistent with the ideal gas law (PV= nRT). Volume is inversely proportional to pressure and directly proportional to the temperature which mean that every 10 degree change in temperature will result in 1 psi change in tire-inflation pressure.

c) Yes there is another chemical reason. Air contains moisture which can build up within and corrode the wheels and tire pressure monitoring system resulting in tire rot from within but Nitrogen gas is much drier and allows a more steady pressure inside the tire.

d) No I will not pay extra for nitrogen filled tires because there's no huge difference between nitrogen and air filled tires. Nitrogen contains only about 93-95% nitrogen and the rest air ,while ordinary air-filled tire contains 78% nitrogen and the rest air. Besides nitrogen gas do not protect nor repairs faulty tires, you still have to check your tires from time to time and ordinary air is much cheaper than nitrogen and in some regions free. So I think its just a marketing strategy and do not have much use.

5 0
2 years ago
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