A convertible bond has a face value of $1,000 and the conversion price is $50 per share. The stock is selling at $30 per share. The bond pays $65 per year in interest and is selling in the market for $950. It matures in 7 years. Market rates are 10% annually. a. What is the conversion ratio? b. What is the conversion value?
Q: Stan's discount floor covering made net sales answer this question accounting
A: Step 1: Define Gross Profit PercentageIn the context of accounting, the income statement for a given…
Q: None
A: Step 1: Define Asset SaleWhen fixed assets are sold, the cash flows from the sale impact the…
Q: Granite Peak Construction mixes concrete using a 3:2:1 ratio of cement, sand, and gravel. If one…
A: Step 1: Given, Granite Peak Construction mixes concrete using a 3:2:1 ratio of cement, sand, and…
Q: Mitchel Corporation manufactures a single product. Please need help with this accounting question
A: Step 1: Define Absorption Costing Vs. Variable CostingUnder absorption costing, the value of…
Q: A firm has sales of $800 accounting questions
A: Step 1: Define Return On EquityThe firm's return on equity (ROE) is a profitability ratio that…
Q: provide this account questions answer
A: Let's analyze the correct and incorrect statements about the Lower of Cost or Market (LCM) valuation…
Q: Wasson company reportd solve the question accounting
A: Step 1: Define Cost of work in processThe sum of the initial work-in-progress cost and all current…
Q: Birk camera shop uses the lower of cost or market solution this question
A: Step 1: Define Inventory ValuationTo apply the conservatism principle in accounting, inventory is…
Q: General accounting question
A: Step 1:The budgeted indirect cost driver rate based on the machine hours can be calculated by…
Q: Accounting question please solve correct answer not use ai
A: Step 1: Define Direct Materials Price VarianceThe direct materials price variance represents the…
Q: Business 123 Introduction to Investment May I please have an expert explore various hard asset…
A: Precious Metals Investing in precious metals, which include gold, silver, platinum, and palladium,…
Q: 5. Jobs completed during December and the actual output were:Job No. Quantity Items3005-5 48,000…
A: Brief Calculations:1. Total Costs in Process:This includes:Direct Materials, Purchased Parts, and…
Q: Give me answer
A: Explanation of Budgeted Sales: Budgeted sales represent the projected revenue a company expects to…
Q: Kanek's contribution margin is 40%. The company is contemplating an advertising campaign that will…
A: 1 Understand the ProblemContribution margin is the percentage of sales revenue that contributes to…
Q: I need this accounting question
A: Step 1: Define Variable CostingThe variable costing income statement is prepared only for internal…
Q: All of the following are reasons why IT is important to accountants except: a.IT questions often…
A: The question is asking us to identify which of the given options is not a reason why Information…
Q: Hi expert please give me answer general accounting
A: Explanation: In the given case, we are required to calculate the internal growth rate using the data…
Q: Don't use ai to answer I will report you answer
A: Step 1: Calculate the arithmetic average returns. To find the arithmetic average return for each…
Q: Shore Company reports the following information regarding its production cost. Please provide answer…
A: Step 1: Define Absorption CostingAbsorption costing is an approach used to record the cost of…
Q: The rate of return on assets (ROA) is calculated by dividing Select one: a. average total assets…
A: The Rate of Return on Assets (ROA) is a financial ratio that is used to measure the profitability of…
Q: Hello tutor please provide this question solution general accounting
A: Step 1: Define Average Collection PeriodThe number of days required by the business to convert its…
Q: The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances…
A: LandBeginning balance: $600,000.Increase:Acquired land in exchange for stock and incurred additional…
Q: A company produces a single product give me answer general accounting
A: Target unit sales to earn 60,000 profit = (Fixed costs + Target profit) / CM per unit Contribution…
Q: What is the cost of Grade A per liter?
A: Step 1: We need to calculate the cost of Grade A milk per liter, so for this,It is given that the…
Q: None
A: Step 1: Define Manufacturing OverheadThese are supporting costs that are necessary to incur by the…
Q: Dehner corporation uses a job order costing solution this question
A: Step 1: Define Total Job CostThe total cost of a job in job-order costing is determined on its job…
Q: STRICT WARNING: AI ANSWER WILL BE REJECTED & REPORT
A:
Q: Please given correct answer don't use ai...
A: The problem requires the determination of the P/E ratio. The price-to-earnings (P/E) ratio measures…
Q: Give me true answer this general accounting question
A: Step 1: Define Original costThe overall amount connected with acquiring a product is known as the…
Q: I am waiting for both answer
A: A. The total manufacturing costs is calculated by adding direct materials, direct labor, and…
Q: Financial accounting question
A: Step 1:The value of ending inventory using the lower of cost or net realizable value (LCNRV) is…
Q: In this article with Brian Hock - Certifications: Your Ticket to Career Success and Growth please…
A: Professional certifications are of great relevance in the path of success for career building and…
Q: Financial accounting question please given answer not use ai..
A: Step 1: Define Accounts Receivable Turnover RatioThe accounts receivable turnover ratio refers to…
Q: Harris Fabrics computes it's plantwide predetermined overhead rate annually on the basis of direct…
A: Step 1: Define Overhead RateThe overhead rate helps to calculate the applied overhead cost during…
Q: Need help with this question solution general accounting
A: MakeBuyDirect materials10.50 Direct labor14.50 Variable overhead3.50 Purchase cost 37.00Total…
Q: 5. Jobs completed during December and the actual output were:Job No. Quantity Items3005-5 48,000…
A:
Q: Please provide correct answer financial accounting
A: Step 1: Define Predetermined Overhead RateThe predetermined overhead rate of the assembly department…
Q: Jack and Jill are owners of UpAHill, an S Corporation. They own 25 and 75 percent, respectively.…
A:
Q: general account expert solve this
A: To determine the total value of the ending inventory under the lower of cost or market (LCM) method,…
Q: general account questions
A: Steps for DRD Calculation:Calculate Tentative DRD Limit:Dividends received: $60,000For a corporation…
Q: I want to correct answer general accounting
A: Step 1: Calculate revenue from selling at the split-off pointStep 2: Calculate profit from selling…
Q: Help
A: 1. Answer: b. $930 Calculation:1. Expected defective units:Total sales × Estimated defect rate = 400…
Q: Which condition triggers special revenue accounting
A: Explanation of Bill-and-Hold Arrangements: Bill-and-hold arrangements are special sales agreements…
Q: Please answer do fast and correct calculation of these general accounting question
A: Step 1: Define Operating LeverageThe percentage change in operating income as a result of a…
Q: A company has total fixed solve this question accounting
A: Step 1: Define Break Even SalesAny business needs to sustain for a longer period. Businesses can…
Q: Please provide correct answer financial accounting
A: Step 1: Original Price Calculation• Discount Amount: $156.00• Discount Percentage: 12.5% (0.125)•…
Q: 2020 cash flow accounting question
A: Explanation of Operating Cash Flow: Operating cash flow represents the amount of cash generated by a…
Q: What is the amount of the net fixed assets on these general accounting question?
A: Step 1: Define Fixed AssetsFixed assets refer to tangible assets or equipment that a business uses…
Q: Please given answer Accounting question not use ai...
A: Step 1: Define Total Manufacturing Costs"Total Manufacturing Costs" is the cost incurred on…
Q: Can you please answer the financial accounting question?
A: Step 1: Define Notes PayableA note payable is a type of liability that is used in order to access…
A convertible bond provide this question solution general accounting
Step by step
Solved in 2 steps
- A 2-year zero-coupon bond with $100 principal is trading at $95.00. Price of a 2-year coupon bond with annual coupon of $10 and principal of $100 is $104.00. (a) What is the 2-year spot rate from t = 0 to t = 2? (b) What is the spot rate per year from t = 0 to t = 1?Bond P is a premium bond with a 10 percent coupon. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 8 percent, and have five years to maturity. (Assume par value of K1,000)(i) What is the current yield for Bond P and Bond D?(ii) If interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? For Bond D?(iii)Explain your answers and the interrelationship among the various types of yields.Suppose that a 20-year 7% bond selling for $816 and held to maturity has reinvestment rate of 6%. Coupon is paid twice a year. Par value is $1,000. What is the annual total return?
- What is the value of a bond that has a par value of $1,000, a coupon of $120 (annually), and matures in 10 years? Assume a required rate of return of .0702. Instruction: Type your answer in dollars, and round to two decimal places.A bond with a face value of $1,000 has 10 years until maturity, has a coupon rate of 5.2%, and sells for $1,105. a. What is the current yield on the bond? (Enter your answer as a percent rounded to 2 decimal places.) b. What is the yield to maturity if interest is paid once a year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.) c. What is the yield to maturity if interest is paid semiannually? (Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.)1. You own a convertible bond that pays annually, has a 4% yield, 7.5% coupon rate, and matures in 10 years. The conversion ratio is 20. The stock price is $43. What is your gain or loss if you convert? What is the minimum stock price to convert this bond? Answer: loss of 423.88 / convert if stock price is greater than 64.19
- Consider a(n) Ten-year, 14.5 percent annual coupon bond with a face value of $1,000. The bond is trading at a rate of 11.5 percent. a. What is the price of the bond?b. If the rate of interest increases 1 percent, what will be the bond’s new price?c. Using your answers to parts (a) and (b), what is the percentage change in the bond’s price as a result of the 1 percent increase in interest rates? (Negative value should be indicated by a minus sign.)d. Repeat parts (b) and (c) assuming a 1 percent decrease in interest rates. (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) a. Price of the bond b. Bond's new price c. Percentage change % d. Bond's new price Percentage change %A 10-year bond has face value (redemption value) $250,000 and quarterly coupons of 2%. Consider the time right after the 12th coupon has been paid, when the yield is 3.4%. (a) What is the price of the bond? (b) Compute the price of the bond if the yield were to increase by 1 basis point (a basis point is 1/100 of 1%). What is the absolute value of the difference between that price, and your answer to part a)? (c) Would the yield have to increase or decrease in order for the bond to increase in value by $885.53? (d) Based only on your answer to b), approximately how many basis points (bp) would the yield have to move in order for the bond to increase in value by $885.53? (Answer as a positive integer.) b): #5(c): (A) Decrease (B) Increase 5(d): Answer correct to 2 decimals. Select Answer correct to 2 decimals. Answer as a positive integerA newly issued bond pays its coupons once a year. Its coupon rate is 4.7%, its maturity is 15 years, and its yield to maturity is 7.7%. a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.7% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return % b. If you sell the bond after one year when its yield is 6.7%, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%? The bond is subject to original-issue discount (OID) tax treatment. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Tax on interest income $ Tax on capital gain $ Total taxes $ c. What is the after-tax holding-period return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)…
- What is the value of a bond that matures in 17 years, makes an annual coupon payment of $50, and has a par value of $1,000? Assume a required rate of return of .0590. Instruction: Type your answer in dollars, and round to two decimal placessuppose a 30 year, pay coupon of 4% is priced to yield 5%. par = 1000. the bond pays its coupon annually. calculate the instrinsic value of the bond. decide whether the bond is at premium or discount? please show the calculation using excelA bond with a face value of $1000 and a coupon rate of 10% (paid semi-annually) matures in 10 years from now. The required return (YTM) is 5%. i) Is the bond sold at premium or at discount? Explain. ii) What is the current market price of the bond? iii) Suppose interest rates and the required return for the bond in part ii) change, so that the market price of this bond is now $980. What is the new yield to maturity of this bond? Did the YTM go up or down? Show proper steps of the proof