Business, 20.03.2020 22:25 Jasoncookies23

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YTM of 6 percent, and 13 years to maturity. Bond Y is a discount bond making semiannual payments. This bond has a coupon rate of 6 percent, a YTM of 7.5 percent, and also 13 years to maturity. Assume the interest rates remain unchanged and a $1,000 par value.
Required:
a. What are the prices of these bonds today? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
b. What do you expect the prices of these bonds to be in one year? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
c. What do you expect the prices of these bonds to be in three years? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
d. What do you expect the prices of these bonds to be in eight years? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
e. What do you expect the prices of these bonds to be in 12 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)
f. What do you expect the prices of these bonds to be in 13 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.)

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 15:30

Josie, an unmarried taxpayer, has $155,000 in salary, $10,000 in income from a passive investment in a limited partnership, and a $26,000 passive loss from a real estate rental activity in which she actively participates. if her modified adjusted gross income is $155,000, how much of the $26,000 loss is deductible

Answers: 1

Answer

Business, 21.06.2019 20:20

Atoy manufacturer makes its own wind-up motors, which are then put into its toys. while the toy manufacturing process is continuous, the motors are intermittent flow. data on the manufacture of the motors appears below.annual demand (d) = 50,000 units daily subassembly production rate = 1,000setup cost (s) = $85 per batch daily subassembly usage rate = 200carrying cost = $.20 per unit per year(a) to minimize cost, how large should each batch of subassemblies be? (b) approximately how many days are required to produce a batch? (c) how long is a complete cycle? (d) what is the average inventory for this problem? (e) what is the total annual inventory cost (holding plus setup) of the optimal behavior in this problem?

Answers: 2

Answer

Business, 22.06.2019 12:40

Acompany has $80,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. experience suggests that 6% of outstanding receivables are uncollectible. the current credit balance (before adjustments) in the allowance for doubtful accounts is $1,200. the journal entry to record the adjustment to the allowance account includes a debit to bad debts expense for $4,800. true or false

Answers: 3

Answer

Business, 22.06.2019 14:30

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.

Answers: 3

Answer

You know the right answer?

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 7.5 percent, a YT...

Questions