Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 8.0% with annual coupon payments. The bonds are currently selling for $868. The bonds may be called in 6 years for 108.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible?
a) 9.39%
b) 12.21%
c) 13.42%
d) 10.13%
e) 8.30%

Answers

Answer 1

Answer:

b) 12.21%

Explanation:

The computation of the quoted annual rate of return is shown below:

Given that

Future value = $1,000 × 108% = $1,080

Present value = $868

NPER = 6 years

PMT = $1,000 × 8% = $80

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the annual rate of return is 12.21%

Therefore the correct option is b.


Related Questions

Consider the following costs of a typical firm in a purely competitive industry. The firm has no fixed costs (average total cost = average
variable cost).
Quantity
1
2
3
4
5
6
Average Total
Cost
$10.00
9.50
9.00
9.25
12.60
22.00
Marginal Cost
$9.00
O $9.25
O $10.00
O $8.00
$9.00
8.00
10.00
26.00
69.00
a. Given only the information available, what would you expect product price to be in the long run?

Answers

Answer:yes sir its right 68 dollars result

Explanation:

What is the before-tax cost of debt for a corporation that issued 15-year bonds with a 10 percent annual coupon, paid semi-annually, par value of $1,000, bond sale price of $970, and $20 issue cost per bond, if the corporation has a marginal tax rate of 23%

Answers

Answer:

10.68%

Explanation:

Face value = 1,000

Coupon rate = 10%

Years to maturity = 15

Nper = 15*2 = 30

PMT = 1000*10%/2 = 50

Price(Present value) = Bond sale price - Issue cost

Price(Present value) = 970 - 20

Price(Present value) = 950

Yield to maturity = Rate(Nper, pmt, -pv, fv) * 2

Yield to maturity = Rate(30, 50, -950, 1000) * 2

Yield to maturity = 0.0534 * 2

Yield to maturity = 0.1068

Yield to maturity = 10.68%

Thus, the before-tax cost of debt is 10.68%

Comment on the​ firm's liquidity over the 2016 ​- 2017 period. ​(Select the best answer​ below.) A. The pattern exhibits a reasonably stable trend. B. The pattern indicates that Bauman​ Company's ability to satisfy its​ short-term obligations has improved over the years. C. The pattern indicates that Bauman​ Company's speed to convert various accounts into sales or cash has improved over the years. D. The pattern indicates a deteriorating liquidity position.

Answers

The pattern of the liquidity of the firm shows that The pattern indicate deteriorating liquidity position because liquidity ratio is decreasing year by year.

What is meant by liquidity?

This is the term that has to do with the ease through which it would be able to convert assets to be come money. It could also be the ability to convert other forms of capitals to money. Cash is a liquid asset and can be said to be the most liquid of all assets.

Hence we can say that the firms liquidity from the period that we have here is indicative of deteriorating liquidity position because liquidity ratio is decreasing year by year.

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If the government sets a quota of 300 pounds of fish caught per day, then fish will sell for ________ more per pound than the cost of catching the fish.

Answers

Answer:

$20 per pound

Explanation:

According to the attached diagram as we can see that the government sets a quota of 300 pounds for caughting a fish per day due to which the selling price is rised from $30 to $50

Also more than 300 pounds of fish would not be caught per day

Therefore the difference of $20 would be considered

hence, the fish would sell for $20 per pound more

PLZ HELP!!!
Paul has a very small budget, but he strongly believes that his new product will be a success. Which sales channel should he try given his situation?
A.
franchising
B.
e-commerce
C.
flea market
D.
telemarketing
E.
multilevel marketing

Answers

Answer:

e commerce is right answer

Answer:

E

Explanation:

Sourcing goods and services from locations around the globe is known as __________.

Answers

Answer:

Global Sourcing

Explanation:

Global sourcing is the practice of sourcing from the global market for goods and services across geopolitical boundaries.

Using the variable cost method, determine the selling price (rounded to the nearest dollar) for 30,000 units using the following data:
Variable cost per unit $15
Total fixed costs $90,000
Desired profit $150,000
a. $23
b. $10
c. $8
d. $15

Answers

Answer:

c. $8

Explanation:

Calculation to determine the selling price

First step is to calculate the Markup percent

Markup percent= (90,000 + 150,000) / (30,000 x 15)

Markup percent = .533

Now let calculate the selling price

Selling price=533 x $15 per unit

Selling price= $8

Therefore the Selling price will be $8

in an essay of at least 2 well-developed paragraphs, explain how the theories of Adam Smith and john maynard keynes are seen in our present American free enterprise system

Answers

Answer:

In our present American free enterprise economic system:

Some people want to see pure capitalism being put in place.  This means that there is no government interference with the workings of the economy.  Some others, including the government, have understood that there is no perfect capitalism.  As such, they call for government intervention to ensure that economic crises are not allowed free reign.

Adam Smith, as a philosopher, vehemently advocated for a free market economy without any form of government interference.  He did not even support the imposition of taxes by the government.  John Maynard Keynes also supported a free market economy, but he advocated for some government intervention from time to time.  John Keynes stated that government must intervene during economic crises through subsidies.

Explanation:

Adam Smith elevated the economic theory of laissez-faire. He noted that the free markets needed only the invisible hand to regulate themselves by means of competition, supply and demand, and self-interest.  John Keynes advocated for increased government expenditures and lowering of taxes as two important means to stimulate market demand and pull the global economy out of depression.

The tables below show the spending and revenue for Littleland in 2010. Use these tables to answer the following questions.
Spending Category Value (in Millions)
Education $320M
Welfare and Social Security $890M
Healthcare $270M
Defense $120M
Payments on Debt $170M*
Other $240M
*This payment covers total interest owned only.
Revenue Category Value (in Millions)
Income Tax $800M
Sales Tax $270M
Corporate Tax $300M
Social Insurance $340M
GDP in 2010 $7.3 Billion
Total Debt as of 2009 $3.5 Billion
1) How much money (in millions) did Littleland need to borrow in 2010 to finance its government spending?
2) At the end of 2010, what was Littleland's debt to GDP ratio? Give your answer to the nearest whole percentage point.

Answers

Answer:

Explanation:

The total Expenditure  is the summation of all the following parameters ( Spending on Education, Spending on Welfare and social security,  Spending on Healthcare, Spending on Defense, Payments on Debt, Other Spending)

The total Expenditure = $(320+890+270+120+170+240) million

The total Expenditure = $2010 million

However;

The total Revenue = Income Tax+ Sales Tax+ Corporate Tax+ Social Insurance

The total Revenue = $(800+270+300+340) million

The total Revenue = $1710 million

The debt now will be the difference between the total expenditure and the total revenue.

Debt = $(2010-1710) million

Debt = $300 million

Therefore, Littleland needs to borrow  $300 million

At the end of 2010, the total debt = Total debt of 2009 + amount borrowed in 2010

Total debt of 2009 = $ 3.5 billion

amount borrowed in 2010 = $0.3 billion

At the end of 2010, the total debt =  $(3.5+0.3) billion

At the end of 2010, the total debt =  $3.8 billion

Therefore; the Debt to GDP ratio in 2010 = 3.8/7.3 = 52.05%

The Debt to GDP ratio in 2010 = 52.05%

To the nearest whole percentage ≅ 52%

Guerilla Radio Broadcasting has a project available with the following cash flows : Year Cash Flow 0 −$15,700 1 6,400 2 7,700 3 4,500 4 4,100 What is the payback period?

Answers

Answer: 2.36 years

Explanation:

Payback period is the amount of time it will take to pay off the initial investment/ outlay which in this case is $15,700.

= Year before investment is paid + (Amount remaining/ Cashflow in year of Payback)

Add up the cashflows to find the year before payback;

= 6,400 + 7,700

= $14,100

Year before payback = 2

Amount remaining;

= 15,700 - 14,100

= $1,600

Payback period = 2 + (1,600/ 4,500)

= 2.36 years

22. Which of the following is correct?
a. If the central bank purchases bonds in the open market, then the money supply
shifts right and there is more currency in circulation.
b. If the central bank sells bonds in the open market, then money supply shifts right
and there is less currency in circulation.
c.
If the central bank purchases bonds, then the money supply shifts right and there
is less currency in circulation.
d.
If the central bank purchases bonds, then the money supply shifts right and there
is no change in currency circulation.

Answers

. If the central bank purchases bonds in the open market, then the money supply shifts right and there is more currency in circulation.

Any open-market operation is when the central banking authority buys and sells government securities, occasionally also commercial paper, with the goal of continuously controlling the money supply and credit conditions.

In some cases, the central bank's lending policies collide with the goal of using open-market operations to stabilize the price of government assets.

When a central bank buys securities on the open market, three things happen:

(1) commercial banks' reserves rise, allowing them to increase loans and investments;

(2) the price of government securities rises, causing interest rates on those securities to fall; and

(3) interest rates fall generally, encouraging business investment.

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The 2013 Rana Plaza factory collapse, which killed 1,100 mostly female workers, is a reminder that, globally, many people work in _________

Answers

Explanation:

Rana plaza is place in Bangladesh which which housed five garment factories, killed at least 1,132 people and injured more than 2,500. Sohel rana the owner of the plaza got jailed because of corruption in building construction.The incident reveals that the many people work in garment factory  in Bangladesh.

Which of these best explains why gold and silver came to be regarded as money?
Group of answer choices

A. They were scarce and did not decay.

B. They could be shaped into jewelry.

C. They were easy to store in bank vaults.

D. They came from mines owned by rulers.

Answers

Answer:

A. gold was rare and did not tarnish or decay, and silver was less rare than gold to signify a lower denomination.

C Co. reported a retained earnings balance of $200,000 at December 31, 2017. In September 2018, C determined that insurance premiums of $30,000 for the three-year period beginning January 1, 2017, had been paid and fully expensed in 2017. C has a 30% income tax rate. What amount should C report as adjusted beginning retained earnings in its 2018 statement of retained earnings

Answers

Answer:

$214,000

Explanation:

The computation of the amount that report as adjusted opening retained earning is shown below:

Per year insurance premium is

= $30,000 ÷ 3 years

= $10,000

Now the beginning retained earning would be understated by

= ($30,000 - $10,000) - ($200,000 × 30%)

= $20,000 - $6,000

= $14,000

Now the amount adjusted is

= $200,000 + $14,000

= $214,000

You place $4000 into an account paying 8% compounded annually. Inflation is expected to be 2.5% during each of the next three years. What is the account's value at the end of the 3 years in Year-O (constant) dollars?
a. $2029
b. $5040
c. $5428
d. $4680

Answers

Answer:

FV= 4,680

Explanation:

Because it is in constant dollars at year 0, we need to take into account the effect of the inflation rate on the investment. The inflation rate decreases the value of money through time. Therefore we need to subtract the inflation rate from the interest rate.

Real interest rate= 0.08 - 0.025= 0.055

Now, future value using the following formula:

FV= PV*(1+i)^n

FV= 4,000*1.055^3

FV= 4,000*1.17

FV= 4,680

Which one of the following represents the two views of managerial impact on the
success or failure of the organization?
O Reflective and interactive
O Symbolic and interactive
O Omnipotent and symbolic
O Omnipotent and reflective

Answers

Answer:

C

Explanation:

C is going to be the answer for this question. Have a good day

Southern Home Cooking just paid its annual dividend of $0.74 a share. The stock has a market price of $14 per share and a beta of 1.16. The return on U.S. Treasury bills is 2.5 percent and the market risk premium is 6.8 percent. What is the firm’s cost of equity?

Answers

Answer:

10.39%

Explanation:

Calculation for What is the firm’s cost of equity

Using this formula

Cost of equity=Treasury bills+(Beta*Market risk premium)

Let plug in the formula

Cost of equity=0.025 + (1.16 x 0.068)

Cost of equity=0.025 + 0.0789

Cost of equity=0.1039*100

Cost of equity=10.39%

Therefore the firm’s cost of equity will be 10.39%

Users of accounting information can be divided into two main groups.

O production managers and purchasing managers
O customers and regulators
O lenders and shareholders
O internal and external

Answers

Answer:

internal and external

Explanation:

internal to make business decisions

external is for investors and creditors

There are some liabilities, such as income tax payable, for which the amounts must be estimated. Failure to estimate these amounts and record them would be a violation of the a.practice of consistency. b.concept of historical cost. c.convention of conservation. d.matching principle.

Answers

Answer: D. Matching principle

Explanation:

The matching principle simply states that organizations or businesses should recognize both the revenues that the company makes and their related expenses that are incurred by the company in same accounting period.

The main idea behind the matching concept is so that earnings that are made by a business will not be misstated.

Abby consumes only apples.

Answers

Answer: she probably loses roughly 3 to 5 lbs in a week doing this. That is if you keep the apple intake low and don't over eat on apples. I would say keep intake to under 10 apples.

Explanation:

I don't know how this is a questions but here you go anyways...... 0 w 0

An appraiser finds that the subject property—a 10-unit apartment building—has historical vacancy and loss rates of nearly 40%. Comparable properties in the area have rates that are typically about 20%. The subject property suffers from poor management, but is otherwise in good physical condition. How should the appraiser set the vacancy and loss rate used in the appraisal?

Answers

The appraiser set the vacancy close to 20% to align with the market.

A task emptiness is described as a paid post this is newly created, unoccupied, or about to become vacant: for which the company is taking lively steps and is ready to take additional steps to find a suitable candidate from out of doors the business enterprise worried.

The definition of a vacancy in the nation as being empty or available refers to empty and unintelligent thoughts. Whilst a motel has room to be had that a guest can lease, this is an example of emptiness.

Employers commonly advertise sorts of vacancies: everlasting roles, and contract roles. The key difference is that human beings in everlasting roles are market personnel, whilst humans in agreement roles are normally self-hired.

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Exclusive distributorships are: a. covered under the Robinson-Patman Act. b. illegal per se. c. questioned when there is no interbrand competition. d. all of the above

Answers

Answer:

The correct option is c. EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition

Explanation:

The process in which a manufacturer of a goods or product decide and as well authorize that their would be only one distributor who will be the seller of their products or goods in a territory, a region or a Market is what is called EXCLUSIVE DISTRIBUTORSHIPS reason been that the manufacturer of such product want to know how good their products is in the territory and to get feedback from the customer about their products in order to take important action in a situation where their is lapses about their products.

Secondly in a situation where their is no INTERBRAND COMPETITION the EXCLUSIVE DISTRIBUTORSHIPS are been questioned reason been that INTERBRAND COMPETITION

occur when a manufacturer or producer of a products differentiate their products from other products that is sold in the same market where their products is been sold example of INTERBRAND COMPETITION is Mirinda drink versus Fanta

Therefore EXCLUSIVE DISTRIBUTORSHIPS are questioned when there is no interbrand competition.

Some Enron executives were aware of the financial problems the company was facing and yet failed to reveal this information to the public. These actions taken by Enron executives were
a. unethical.
b. in the best interests of the employees.
c. moral.
d. in the best interests of the shareholders.
e. normal

Answers

Some Enron executives were aware of financial problems the company was facing and yet they failed to reveal such information to the public. So these actions taken by Enron executives were unethical.

The unethical conduct in which the Enron was involved was that, Fastow and others at Enron orchestrated a scheme in order to use off-balance-sheet special purpose vehicles (SPVs) in order to hide Enron's mountains of toxic assets and debt from investors and creditors.

As the Enron executives used some fraudulent accounting practices in order to inflate the company's revenues and hide debt in its subsidiaries. This was an unethical conduct, as they were aware of the financial problems the company was facing and yet failed to reveal this information to the public.

Hence, option A is correct.

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The Domingos family bought a new refrigerator. How much more or less is the amount they spent than the amount they budgeted?Budgeted: $1,345.60 Spent: $1,354.66

Answers

Budget: 1,345.60$
Spent:1,355.66$
Subtract
=10.06$

Assume the supply of bananas decreases due to rising costs of
production, while demand increases due to consumer preferences. What
will happen to the new equilibrium price and quantity?
A) price increases; quantity increases
B) price increases; quantity is unknown
C)price decreases; quantity decreases
D)price decreases; quantity increases
E)price is unknown; quantity increases

Answers

Answer:c option price decreases;quantity decreases

Studies show that OSHA employees fail to properly inspect and regulate many workplaces, primarily because they do not have __________.

Answers

Answer:

Studies show that OSHA employees fail to properly inspect and regulate many workplaces, primarily because they do not have __________.

sufficient resources.

Explanation:

OSHA means Occupational Safety and Health Act.  The law was passed in 1970 to protect workers rights to safe working environments and to promote good health of workers.  OSHA employees are expected to properly inspect and regulate all workplaces.  But lack of resources (human, material, and financial) have hindered the attainment of the objectives of the law.  The OSHA employees have also faced challenges from employers who would rather not comply with workplace safety regulations.

All of the following are examples of mixed economies EXCEPT
Multiple Choice
in socialist France, the French government owns the postal service industry.
in socialist Sweden, most businesses are owned and operated by private individuals.
in capitalist United States, an independent federal agency operates the postal service.
In once-communist Russia, private ownership of businesses has been implemented.
in communist China, state capitalism is used to advance the economy.

Answers

Answer:

in socialist France, the French government owns the postal service industry.

Explanation:

A mixed economy combines elements of a pure socialists (command) economy and a  capitalist (free market )economy.  A socialist economy is where the government controls all economic activities and decisions in a country. The private sector is absent in a socialist economy.  A  capitalist or free-market economy is one where the government does not interfere with a country's economic activities. The private sector does production and distribution in the economy.

A mixed economy will have traits of socialists and a capitalist economy. Both the government and private sector participates in economic activities.

Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be:

Answers

Answer:

B)A cost center manager.

Explanation:

These are the options for the question;

A payroll clerk.

B. A cost center manager.

C. A production line worker.

D. A maintenance worker.

E. A graphic designer.

A cost center managers are managers that are in charge of transactions that are charged to the center, they are responsible for the development of the

center budget of expenses as well as revenues for the coming year which is done annually. It should be noted that Within an organizational structure, the person most likely to be evaluated in terms of controllable costs would be A cost center manager.

Which questions about risk should someone ask before making a big purchase? Check all that apply.
What problems are most likely to happern?
OWhat can be done to avoid liability
OWhat could go wrong?
OWhat problems could be most damaging?
OWhat option has no risk?

Answers

Answer:

A

Explanation:

If you need buy it, if it's a want not a need don't buy it

The best way to reconcile any conflict between capital budgeting models and performance evaluation is to use the

Answers

Answer:

How to reconcile the potential conflict between capital budgeting and performance evaluations? Use DCF for both capital budgeting decisions and the performance evaluation.

Explanation:

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