Pharoah Corp. management plans to issue seven-year zero coupon bonds. It has learned that these bonds will sell today at a price of $441.46. What is the yield to maturity on these bonds?

Answers

Answer 1

Answer:

12.391%

Explanation:

The yield to maturity on the seven-year zero coupon bond can be determined using the present value below:

PV=FV/(1+r)^n

PV=current price=$441.46

FV=face value at redemption=$1000

r=unknown yield to maturity

n=duration of the zero coupon=7 years

441.46=1000/(1+r)^7

1000/441.46=(1+r)^7

divide index by 7 on both sides

( 1000/441.46)^(1/7)=1+r

1.123905524 =1+r

r=1.123905524 -1=12.39%


Related Questions

Riverbed Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $327,600. The estimated fair values of the assets are land $62,400, building $228,800, and equipment $83,200. At what amounts should each of the three assets be recorded

Answers

Answer:

Land=$54,600, Building = $200,200, Equipment = $72,800

Explanation:

Total Asset Fair Value = Land + Building + Equipment

Total Asset Fair Value = 62,400 + 228,800 + 83,200

Total Asset Fair Value = 374,400

Recorder Amount

Land = 62,400 / 374,400 * 327,600 = $54600

Building  = 228,800 / 374,400 * 327,600 = $200200

Equipment = 83,200 / 374,400 * 327,600 = $72,800

When each additional worker hired contributes less than the previous worker hired to total output, we can say there are (is):_______

a. falling average productivity
b. diminishing marginal utility
c. diminishing average returns
d. diminishing marginal returns

Answers

Answer:

d. diminishing marginal returns

Explanation:

The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant

Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired

So this represents the diminishing marginal returns

hence, the option d is correct

Barbara's Bakery purchased three new 7-year assets last year. She chose NOT to use Section 179 immediate expensing or take bonus depreciation. The furnishings were purchased for $15,000 in April, the equipment for $6,000 in July, and the appliances for $40,000 in November. What amount of depreciation expense is allowable in the current (second) year of ownership?

a. $16,806
b. $14,939
c. $16,163
d. $16,072

Answers

Answer:

b. $14,939

Explanation:

Property placed in service in 1st year:  

                                                Amount $

2nd quarter                              15,000

3rd quarter                                6,000

4th quarter                                40,000

Total furnishing at beginning of 2nd Year $61,000

Half Year depreciation rate in 2nd Year  as per Macrs table under "7 years life" assets, the applicable depreciation in the 2nd year is 24.49%

Thus, amount of depreciation expense is allowable in the current (second) year of ownership = $61,000 * 24.49% = $14938.90

Suppose US$1 = €0.7809 in New York and US$1 = €0.7793 in Paris. How can foreign exchange traders profit from these exchange rates? What actions can they take that may result in the same dollar/euro exchange rate in both New York and Paris? Please limit your response to one or two reasonably-sized paragraphs.

Answers

Answer:

If a Dollar is worth $ 0.7809 Euros in New York, and $ 0.7793 Euros in Paris, the way in which foreign exchange traders could obtain an economic profit through this difference would be by buying Euros in Paris, and selling them again in New York. Thus, they would obtain $ 0.016 of profit for each Euro traded in the market, with which, for example, if $ 1,000,000 of Euros were traded, a total profit of $ 16,000 would be obtained. In turn, trading the same amount in both Paris and New York, traders would not make any profit, equating both exchange rates.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called: Multiple Choice Consumers Union. Consumers International. Public Interest Research Group. Public Citizen.

Answers

Answer:

Consumer international

Explanation:

Consumer international is am organisation that have members that are consumer groups around the world.

Presently they have members of 250 consumer groups in 120 countries around the world.

The headquarters not the organisation is in London. While it has branches in Latin America, Asia Pacific, Africa, and the Middle East.

They focus on consumer protection. Ensuring that member groups get the best products at the cheapest rates

Kenji has had an illness and an accident during the year. His combined out-of-pocket expense for both incidents was $1,000. The insurance company will now start to pay some of his medical expenses. What does the $1,000 represent?

a. Participation (co-insurance)
b. Deductible
c. Coordination of benefits
d. Intemal limits

Answers

Answer:

b. Deductible

Explanation:

Since in the question it is mentioned that Kenji who had an illness and had an accident during the year also the combined out of pocket expenses is $1,000.

So this $1,000 represent the deductible

hence, the correct option is b.

And the other options are wrong

Therefore the same is to be considered

Write a sample greeting you would record on your professional cell phone to be heard by employers and recruiters if they reach your voice mail.

Answers

Answer:

This is (your name) with (say the company) I can not come to the phone right now but please leave a message and I will call you back.

Answer: Hello, you’ve reached (Your First and Last Name).

Sorry I wasn’t able to take your call, but please leave your name and a detailed message and I’ll get back to you.

Have a great day.”

The Open Grill incurred the following costs in acquiring a new piece of land:


Cost of the land $ 80,000
Commissions 4,800
Liability insurance for the first year 1,200
Cost of removing existing building 20,000
Sale of salvaged materials (4,000 )
Total costs $ 102,000

What is the total recorded cost of the land?
a. $102,000.
b. $100,800.
c. $106,000.
d. $80,000.

Answers

Answer:

b. $100,800.

Explanation:

Calculation for the total recorded cost of the land

Cost of the land $ 80,000

Add Commissions $4,800

Add Cost of removing existing building $20,000

Less Sale of salvaged materials ($4,000 )

Total recorded cost of land $100,800

Therefore the total recorded cost of the land will be $100,800

In the ____ and ____ stages of product life cycle, firms often set priorities on growth and/or market share

Answers

Answer:

In the introduction and early growth stages of the product life cycle, firms often set priorities on growth and/or market share

Explanation:

Gibson Valves produces cast bronze valves on an assembly​ line, currently producing 2000 valves per shift. If the production changes to 1600 valves per​ shift, labor productivity will change​ by:

Answers

Answer:

25%

Explanation:

Calculation for the change in labor productivity

Using this formula

Change in labor Productivity = (New Productivity - Old Productivity)/Old Productivity

Let plug in the formula

Change in labor Productivity= ($2,000-$1,600)/$1,600

Change in labor Productivity= $400/$1,600

Change in labor Productivity= 0.25*100

Change in labor Productivity=25%

Therefore labor productivity will change​ by: 25%

If the following projections have been made, what is the projected ending cash balance?
Cash sales, $380,000
Beginning cash balance, $30,000
Operating expenses of $420,000, including depreciation of $20,000
Interest expense of $12,000 is included in operating expenses
Borrowing $50,000
End-of-period accrued liabilities of $20,000 for operating expenses
a. $80,000
b. $40,000
c. $52,000
d. $48,000

Answers

Answer:

a.$80,000

Explanation:

Calculation for what is the projected ending cash balance

Using this formula

Ending cash balance = Beginning cash Balance + Cash sales + Borrowing Amount- (Operating expenses paid)

Let plug in the formula

Ending cash balance=$30,000 +$380,000+$50,000-($420,000-$20,000-$20,000)

Ending cash balance=$460,000-$380,000

Ending cash balance= $80,000

Therefore the Ending cash balance will be $80,000

Nervous Norman holds 70% of his assets in cash, earning 0%, and 30% of his assets in an insured savings account, earning 2%. The expected return on his portfolio Group of answer choices is 1%. cannot be determined without knowing what the dollar value of his assets is. is 2%. is 0.6% is 0%.

Answers

Answer: 0.6%

Explanation:

The expected return is a weighted average of the returns of the assets invested in.

70% is invested in cash which earns 0%

30% is in a savings account earning 2%

Expected return = (70% * 0%) + (30% * 2%)

= 0% + 0.6%

= 0.6%

If a company’s net income increased while its net sales remained constant, the company's profit margin would:_____

a. Compare favorably to its competitors.
b. Decrease.
c. Increase.
d. Not be impacted.

Answers

Answer:

c. Increase.

Explanation:

If a company’s net income increased while its net sales remained constant, the company's profit margin would increase.

This is simply because the amount of money that is being generated from the sales of goods and services are increasing.

Scott, the chief operating officer of Barcelona Restaurant Group, tells his managers that Barcelona's philosophy is to:

Answers

Answer:

the question is incomplete, so I looked for a similar one:

COO, Scott Lawton, discusses Barcelona’s philosophy on allowing restaurant managers to make their own decisions. They hire and train managers that they believe have the "creativity and brain power" to be successful.

Which type of role is Scott performing?

What type of management approach exists in Barcelona?

Scott is performing an interpersonal role since the question describes his actions regarding restaurant managers and how he allows them to basically operate as independent business units. Scott if the figurehead of Barcelona, but at the same time gives lower level managers a lot of freedom.

This type of management can be described as the humanistic perspective management since employees are empowered.

what is accountancy​

Answers

Accountancy is accountants have long coffee

The company expects this year's sales to increase by 25%. The selling price is $13 per unit. Prepare a Sales Budget for the

Answers

Answer:

The full question is "Royal Company is preparing budgets for the second quarter ending June 30. Last year's sales for the corresponding period were: March 15,000 units April 18,000 units May 28,000 units June 26,000 units July 19,000 units August 12,000 unit.  The company expects this year's sales to increase by 25%. The selling price is $13 per unit. Prepare a Sales Budget for Royal Company."

                                    Sales Budget

Month        Budgeted Sales       Selling Price  Total budgeted sales

March    15,000+25% = 18750            $13                 $243,750

April       18,000 +25% = 22500          $13                 $292,500

May       28,000 +25% = 35000          $13                 $455,000

June      26,000 +25% = 32500          $13                 $422,500

July        19,000 +25% = 23750           $13                 $308,750

Total Budgeted sales for the 2nd Quarter              $1,722,500

August   12,000 +25% = 15000           $13                 $195,000

There is a zero coupon bond that sells for $4,550.90 and has a par value of $10,000. If the bond has 18 years to maturity, what is the yield to maturity'? Assume semiannual compounding.
A. 4.47%
B. 4.27%
C. 4.31%
D. 4.24%
E. 4.42%

Answers

Answer:

E. 4.42%

Explanation:

Calculation for the yield to maturity

First step is to calculate the Current price using this formula

The Current price=Par value/(1+yield to maturity/2)^(2*Time period)

$4,550.90=$10,000/(1+yield to maturity/2)^(2*18)

(1+yield to maturity/2)^36=($10,000/$4,550.90)

1+yield to maturity/2=($10,000/$4,550.90)^(1/36)

Now let calculate the yield to maturity

Yield to maturity/2=1.0221092-1

Yield to maturity=0.0221092*2

Yield to maturity=0.0442*100

Yield to maturity=4.42%

Therefore the Yield to maturity will be 4.42%

Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. What was the effect of this fraud on worldcom's income statement?

Answers

Answer:

net income was too high, expenses were too low

Explanation:

From the question, we are told about how Executives at worldcom committed an $11 billion fraud by capitalizing costs that should have been expensed. In this case the effect of this fraud on worldcom's income statement is that net income was too high, expenses were too low. An income statement which can also be regarded as "profit and loss" account is a financial statement that gives the revenue as well as the expenses of a company at a particular period, so if the Executive capitalize costs that should have been expensed then it equates to the net income been too high while expenses were too low.

If
you are
using $50 to buy your groceries, which function of money is
this?

Answers

Answer:

Medium of Exchange

Explanation:

A medium of exchange is an instrument used as an intermediary to facilitate the exchange of goods and services. A good medium of exchange must give a fair valuation of the items being traded. Money is a widely accepted medium of exchange.

Almost all items in a market have a monetary value attached to them. A Buyer or seller would easily know the amount of money needed to trade an item. The $50 is being used as a medium of exchange for the purchase of groceries. The seller accepts the money if they agree with the buyer on the quantity of groceries worth $50.

If tremaine waited until he had $30,000 saved for a down payment, what would his monthly payment be

Answers

Answer:

The first part of the question is missing, so I looked for a similar question and found this:

Tremaine wants a one bedroom townhouse in a trendy new development downtown; average cost is $145,000.  He is preapproved for a 4.38% interest rate on a 30-year fixed mortgage and has saved $15,000 for a down payment.

What will Tremaine’s monthly payment be? How much total interest will he pay over the course of the mortgage If Tremaine waited until he had $30,000 saved for a down payment,  what will his monthly payment be?  

1. Tremaine's loan = $145,000 - $15,000 = $130,000

monthly payment = loan / annuity factor

PV annuity factor, 0.365%, 360 periods = 200.1694

monthly payment = $130,000 / 200.1694 = $649.45

2. total payments = $649.45 x 360 = $233,802

total interests paid = $233,802 - $130,000 = $103,802

3. Tremaine's loan = $145,000 - $30,000 = $115,000

monthly payment = loan / annuity factor

PV annuity factor, 0.365%, 360 periods = 200.1694

monthly payment = $115,000 / 200.1694 = $574.52

His monthly payment will be $574.52

Here, we will use the PMT function in Excel to calculate the Monthly loan payment.

Loan amount (Pv) = Cost of house - Down payment = $145,000 - $30,000 = $115,000.

Given information

Rate = 4.38% / 12

Nper = 30*12 = 360

PV = 115,000

Monthly payment = PMT(Rate, Nper, Pv)

Monthly payment = PMT(4.338%/12, 360, 115000)

Monthly payment = $574.52

Therefore, tremaine's monthly payment on the loan will be $574.52.

Missing information includes " Wants a one bedroom townhouse in a trendy new development downtown; average cost is $145,000 ● Is preapproved for a 4.38% interest rate on a 30-year fixed mortgage ● Has saved $15,000 for a down payment"

See similar solution here

brainly.com/question/23994168

Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FMV of $90,000 and an adjusted basis of $30,000 for 40% of the stock. Brad also receives $10,000 cash from the corporation. What is the corporation's basis in the asset received from Brad?

Answers

Answer:

$40,000

Explanation:

Calculation for the corporation's basis in the asset that was received

Using this formula

Corporation'sbasis in the asset received = Stock Adjusted basis + Cash received

Let plug in the formula

Corporation'sbasis in the asset received = $ 30,000 +$10,000

Corporation'sbasis in the asset received = $ 40,000

Therefore the Corporation'sbasis in the asset received will be $40,000

If there is a high supply for a product, then production would be _____.


decreased

increased

the same

none of the above

Answers

Answer:

the same i think is this correct

Answer:

increased

Explanation:

edg

Assume that the risk-free rate is 6% and the market risk premium is 8%.

What is the expected return for the overall stock market? Round your answer to two decimal places.
___________ %

What is the required rate of return on a stock with a beta of 1.9? Round your answer to two decimal places.
___________ %

Answers

Answer:

r or expected rate of return - market = 0.14 or 14%

r or expected rate of return - stock = 0.2120 or 21.20%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate rpM is the market risk premium

Under CAPM, the assumption follows that the beta of the market is always equal to 1.

So, expected return on the stock market will be,

r or expected rate of return - market = 0.06 + 1 * 0.08

r or expected rate of return - market = 0.14 or 14%

The beta of the stock is given. We calculate the required rate of return on the stock to be,

r or expected rate of return - stock = 0.06 + 1.9 * 0.08

r or expected rate of return - stock = 0.2120 or 21.20%

principals of manegment ​

Answers

Answer:

The answer is "Option d".

Explanation:

The management team consists of the coordination of any resources in the preparation, organization, analysis, and administration of the project to reach specific goals.  

It is how something will be handled, treated intently, monitored, or managed by a company or group.  Managers work as planners, supervisors, and managers thru the four roles, administrators, which focus on making their staff, processes, projects, and companies more efficient and effective in all fields.

The Fried Green Tomatoes Restaurant has increased its operating cycle from 97.4 days to 101.7 days while the cash cycle has decreased by 2.9 days. How have these changes affected the accounts payable period?

a. Decreased by 11 days
b. Decreased by 5 days
c. Decreased by 1 day
d. Increased by 5 day
e. Increased by 11 days

Answers

Answer:

Increased by 7.2 days

Explanation:

As in the question it is mentioned that the operating cycle is increased from 97.4 days to 101.7 days so the difference in days is

= 101.7 days - 97.4 days

= 4.3 days

And, the cash cycle is decreased by 2.9 days

So, the total number of days would be

= 4.3 days + 2.9 days

= 7.2 days

These have been the negative impacts

The options that are mentioned in wrong and the above is the righ answer

The next dividend payment by ASAP, Inc., will be $2.00 per share. The dividends are anticipated to maintain a 4.00% growth rate, forever. If ASAP stock currently sells for $14.75 per share, what is the required return?

Answers

Answer:

r = 0.175593 or 17.5593% rounded off to 17.56%

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D1 / (r - g)

Where,

D1 is dividend expected for the next period /year g is the growth rate r is the required rate of return  

Plugging in the values for D1, P0 and g, we can calculate the value of r to be,

14.75 = 2 / (r - 0.04)

14.75 * (r - 0.04)  =  2

14.75r - 0.59  =  2

14.75r = 2 + 0.59

r = 2.59  /  14.75

r = 0.175593 or 17.5593% rounded off to 17.56%

True or false: The main purpose of managerial accounting is to provide general-purpose financial statements

Answers

Answer:

False

Explanation:

managerial accounting is simply the sorting or gathering/preparing of accounting information that is to be used within a company. It help to ensure the organization's goals are met effectively and efficiently.

Functions of Management Accountant includes Planning(deciding on the long-term direction of the company e.g. making budget)

You own a stock portfolio invested 40 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are .93, 1.10, 1.10, and 1.28, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

the portfolio beta is 1.06

Explanation:

The computation of the portfolio beta is shown below:

The Beta of the Portfolio is

= Stock Q Weight × Beta of Stock Q + Stock R Weight  × Beta of Stock R + Stock S Weight × Beta of Stock S + Stock T Weight × Beta of Stock T

= 0.93 × 0.4 + 1.1 × 0.25 + 1.1 × 0.2 + 1.28 × 0.15

= 1.06

hence, the portfolio beta is 1.06

We simply applied the above formula so that the correct value could come

And, the same is to be considered

In an E-Contract, what are the similarities and differences between an Online Offer and an Online Acceptance?

Answers

ANSWER:

the answer is pet your dogo

Explanation:

Crane Corp. had total variable costs of $281,400, total fixed costs of $130,350, and total revenues of $420,000. Compute the required sales in dollars to break even.

Answers

Answer:required sales to break even=$395,000

Explanation:

Break Even Sales = Fixed Expenses / Contribution Margin

  But

Fixed  Costs /Expenses  is given as  $130,350

And

Contribution Margin Ratio  is solved as  (Total Revenue - Variable Cost) / Total Revenue x 100  

= ($420,000-$281,400)/ $420,000 x 100

=0.33 x 100

= 33%

Break Even Sales = $130,350/33%

= $395,000

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