N4 5. Computer needed. Be sure to explain your reasoning (what determines price? What isthe equation computer must solve?. No need to actually do the computing).a. Consider a one-period discount bond with a face value of $1000. The marketinterest rate on that class of bonds is 7%. Compute the bond price.b. Consider a three-year coupon bond that sells for $1,000 with a coupon rate of5%. Compute the bond price if the market interest rate on that class of bonds is6%.c. Congratulations, you have won the lottery grand prize of $20 million. You willreceive $1 million per year for twenty years. What is the present value of thisprize?d. Consider a government bond, known as a consol, that never matures: it paysannual coupons of $40 forever. If the yield to maturity on similar governmentbonds is 2.5%, what would be the price of a consol?

The question is based on the concept to calculate the present value of future cash flows in…

Answered: 5. Computer needed. Be sure to explain…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Q30
P10.5
14. Determine the numerical value of the factor (F/A, 5%, 10). A 0.1295 0.0795 12.5779 D 7.7217 B.
M a r i o i s p r e p a r i n g h i s b a l a n c e s h e e t a n d i n c o m e a n d e x p e n s e s s t a t e m e n t f o r t h e y e a r e n d i n g J u n e 3 0 , 2 0 2 2 . H e i s h a v i n g d i f f i c u l t y c l a s s i f y i n g s i x i t e m s a n d a s k s f o r y o u r h e l p . W h i c h, i f a n y , o f t h e f o l l o w i n g t r a n s a c t i o n s a r e a s s e t s , l i a b i l i t i e s , i n c o me , o r e x p e n s e i t e m s ?a ) M a r i o r e n t s a h o u s e f o r P 1 0 , 0 0 0 . 0 0 a m o n t h b ) O n J u n e 2 1 , 2 0 2 2 , M a r i o b o u g h t g o l d p i e c e s o f j e w e l r y f o r h i s w i f e a n d c h a r g e d t h e m u s i n g h i s V i s a c a r d . T h e p i e c e s o f j e w e l r y c o s t P 6 0 , 0 0 0 . 0 0 , b u t h e h a s n ’ t r e c e i v e d t h e b i l l .c )…
8. Transform 2 into an improper fraction. 10 a. 28/5 b. 5/14 C. 14/5 d. 14/10
3 . D e t e r m i n e t h e a n n u a l n e t c o s t o f t h e s e c h e c k i n g a c c o u n t s : a ) M o n t h l y f e e o f P 5 0 0 . 0 0 , a c h e c k p r o c e s s i n g f e e o f P 2 5 0 . 0 0 , a n a v e ra g e o f 1 9 c h e c k s w r i t t e n p e r m o n t h b ) A n n u a l i n t e r e s t o f 2 . 5 % p a i d i f b a l a n c e e x c e e d s P 2 0 , 0 0 0 . 0 0 , P 2 , 0 0 0 . 0 0 m o n t h l y f e e i f a c c o u n t f a l l s b e l o w t h e m i n i m u m b a l a n c e , a v e r a g e m o n t h l y b a l a n c e P 1 5 , 0 0 0 . 0 0 , a c c o u n t f a l l s b e l o w P 1 0 , 0 0 0 . 0 0 d u r i n g 4 m o n t h s .
Sohr Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $51 to buy from farmers and $10 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $21 or processed further for $11 to make the end product industrial fiber that is sold for $59. The beet juice can be sold as is for $42 or processed further for $24 to make the end product refined sugar that is sold for $59. How much profit (loss) does the company make by processing one batch of sugar beets into the end products industrial fiber and refined sugar? Multiple Choice O $(4) $8
Q4. What is the meaning of: b. n/eom:
1 . A n d r e i S a n t o s p u r c h a s e d a c o n d o m i n i u m 4 y e a r s a g o f o r P 3 , 6 0 0 ,0 0 0 . 0 0 , p a y i n g P 3 7 , 5 0 0 . 0 0 p e r m o n t h o n h e r P 2 , 0 0 0 , 0 0 0 . 0 0 , 8 % , 2 5 - y e a r m o r t g a g e . T h e c u r r e n t l o a n b a l a n c e i s P 1 , 5 2 4 , 0 1 0 . 0 0 . r e c e n t ly , i n t e r e s t r a t e s d r o p p e d s h a r p l y , c au s i n g A n d r e i t o c o n s i d e r r e f i n a n c i n g h e r c o n d o a t t h e p r e v a i l i n g r a t e o f 6 % . H e e x p e c t s t o r e m a i n i n t h e c o n d o f o r a t l e a s t 4 m o r e y e a r s a n d h a s f o u n d a l e n d e r t h a t w i l l m a k e a 6 % , 2 1 - y e a r , P 1 , 5 2 4 , 0 1 0 . 0 0 l o a n , r e q u i r i n g m o n t h l y p a y m e n t s o f P 1 0 , 6 5 0 . 0 0 . a l t h o u g h t h e r e is…
D1.
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 9.2 kilos Direct materials Direct labor. 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials. Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice Standard Price or Rate $ 6.70 per kilo $ 27.00 per hour $ 6.70 per hour 3,900 units 29,730 kilos 32,300 kilos 1,130 hours $ 202,920 $ 23,436 $ 8,240 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for August is:
Refer to the following selected financial information from Texas Electronics. Compute the company's acid-test ratio for Year 2. Year 2 $ 38,400 Year 1 $ 33,150 64,500 99,000 90,000 84,000 125,500 129,500 13,000 10,600 392,500 342,500 108,900 112,300 715,500 680,500 394,500 379,500 Cash Short-term investments. Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets Accounts payable Net sales. Cost of goods sold

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