Part 1 (2.5 points)
See Hint
You purchased an IBM bond with a face value of $10,000 and an
interest rate of 25%. Suddenly, the market interest rate changes,
which raises your bond price by $600.
What was the original price of the bond? (Compute this answer to
two decimal places.)
Part 2 (2.5 points)
See Hint
What is the new market interest rate? (Compute this answer to
two decimal places.)
Homework Answers
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Part 1 (2.5 points)
See Hint
You purchased an IBM bond with a face value of $10,000...
Two years ago a 10 year 10% annual coupon $1000 face value bond was purchased at...
Two years ago a 10 year 10% annual coupon $1000 face value bond was purchased at a yield of 8%. Right after purchase the interest rates went up to 12%. If this bond is sold today, what is the investor's annual return on this investment? Hint: step 1: find original purchase price of the bond. step 2: find the reinvested value of all received coupons and the sale price of the bond. step 3: compute the annual rate of return...
12th attempt See Hint Calculate the deadweight loss associated with a price ceiling of $2.50 With deadweight loss you d...
12th attempt
See Hint
Calculate the deadweight loss associated with a price ceiling of
$2.50
With deadweight loss you do not use units. Just input number up to
two decimal places __________________________ ?
7.5 7 6.5 5.5 5 4.5 4 3.5 3 2.5 2 1.5 0.5 Quantity (millions of 1 LO LO LO LO LO LO LO We were unable to transcribe this image
assume face value of 1000 for bond The Faulk Corp. has a bond with a coupon...
assume face value of 1000 for bond
The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Yoo Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 10 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by...
Question 21 (2.5 points) A mortgage bond with face value of $10,000 has a bond interest...
Question 21 (2.5 points) A mortgage bond with face value of $10,000 has a bond interest rate of 8% per year payable semiannually. What is the amount of the bond interest or interest payment every six months? $800 5400 $10,000 $200 Question 22 (5 points) Compare the alternatives shown below on the basis of their capitalized costs, using an effective rate 3 Comogundediately Calculate the capitalized Cost for each strative and select the best option. Do not select until you...
Exercise 17-1 (Part Level Submission) Saddle Inc. has two types of handbags: standard and custom. The...
Exercise 17-1 (Part Level Submission)
Saddle Inc. has two types of handbags: standard and custom. The
controller has decided to use a plantwide overhead rate based on
direct labor costs. The president has heard of activity-based
costing and wants to see how the results would differ if this
system were used. Two activity cost pools were developed: machining
and machine setup. Presented below is information related to the
company’s operations.
Standard
Custom
Direct labor costs
$51,000
$116,000
Machine hours
1,410...
On January 1, 2020, Buffalo Company sold 11% bonds having a maturity value of $600,000 for...
On January 1, 2020, Buffalo Company sold 11% bonds having a
maturity value of $600,000 for $622,744, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020,
and mature January 1, 2025, with interest payable December 31 of
each year. Buffalo Company allocates interest and unamortized
discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance.
(Round answer to 0 decimal places, e.g. 38,548. If no
entry...
Spilker Assignment Chapter 8 due Jan 16, up to 9 points Part 1 (4 points). See...
Spilker Assignment Chapter 8 due Jan 16, up to 9 points Part 1 (4 points). See Rodney Hall's Form 1040 copied below (exhibit 4-11 on pages 4-25 and 4-26). The Spilker text used the 2017 form 1040. Please fill in the same data in the newly released 2018 form 1040 and Schedule 1, and complete the table belovw Line Description 2b 10 12 13 15 16 18 19 20a Schedule 1 Description Line 32 36 Part 2 (4 points) Show...
Suppose that you are considering the purchase of a coupon bond with a face value of...
Suppose that you are considering the purchase of a coupon bond with a face value of $1,000 that matures after four years. The coupon payments are 6 percent of the face value per year. a. How much would you be willing to pay for this bond if the market interest rate (that is, the best alternative investment option) is also 6 percent? b. Suppose that you have just purchased the bond, and suddenly the market interest rate falls to 5...
Part 2 (1 point) Rate 2 = molecules/(cm3·s) Part 3 Rate 3 = molecules/(cm3·s) Part 4 Rate...
Part 2 (1 point)
Rate 2 = molecules/(cm3·s)
Part 3
Rate 3 = molecules/(cm3·s)
Part 4
Rate 4 = molecules/(cm3·s)
@ See page 639 02 Question (4 points) Dinitrogen pentoxide (N2O5) decomposes as follows to nitrogen dioxide and nitrogen trioxide: N,93(g) — NO2(g) + NO3(g) Calculate the average rate of the reaction between consecutive measurement times in the following table. Time (s) [N2O5] (molecules/cm3) 0.00 1.505x1012 1.55 1.444x1012 3.10 1.401x1012 4.65 1.370x1012 1.349x1012 6.20 v 1st attempt Part 1 (1 point)...
BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual...
BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.3%. If Janet sold the bond today for $1,026.98, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. % BOND VALUATION Madsen Motors's bonds have 12 years remaining to...
12th attempt
See Hint
Calculate the deadweight loss associated with a price ceiling of
$2.50
With deadweight loss you do not use units. Just input number up to
two decimal places __________________________ ?
7.5 7 6.5 5.5 5 4.5 4 3.5 3 2.5 2 1.5 0.5 Quantity (millions of 1 LO LO LO LO LO LO LO We were unable to transcribe this image
assume face value of 1000 for bond
The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Yoo Company has a bond with a coupon rate of 10 percent outstanding. Both bonds have 17 years to maturity, make semiannual payments, and have a YTM of 7 percent. 10 points If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by...
Question 21 (2.5 points) A mortgage bond with face value of $10,000 has a bond interest rate of 8% per year payable semiannually. What is the amount of the bond interest or interest payment every six months? $800 5400 $10,000 $200 Question 22 (5 points) Compare the alternatives shown below on the basis of their capitalized costs, using an effective rate 3 Comogundediately Calculate the capitalized Cost for each strative and select the best option. Do not select until you...
Exercise 17-1 (Part Level Submission)
Saddle Inc. has two types of handbags: standard and custom. The
controller has decided to use a plantwide overhead rate based on
direct labor costs. The president has heard of activity-based
costing and wants to see how the results would differ if this
system were used. Two activity cost pools were developed: machining
and machine setup. Presented below is information related to the
company’s operations.
Standard
Custom
Direct labor costs
$51,000
$116,000
Machine hours
1,410...
On January 1, 2020, Buffalo Company sold 11% bonds having a
maturity value of $600,000 for $622,744, which provides the
bondholders with a 10% yield. The bonds are dated January 1, 2020,
and mature January 1, 2025, with interest payable December 31 of
each year. Buffalo Company allocates interest and unamortized
discount or premium on the effective-interest basis.
Prepare the journal entry at the date of the bond issuance.
(Round answer to 0 decimal places, e.g. 38,548. If no
entry...
Spilker Assignment Chapter 8 due Jan 16, up to 9 points Part 1 (4 points). See Rodney Hall's Form 1040 copied below (exhibit 4-11 on pages 4-25 and 4-26). The Spilker text used the 2017 form 1040. Please fill in the same data in the newly released 2018 form 1040 and Schedule 1, and complete the table belovw Line Description 2b 10 12 13 15 16 18 19 20a Schedule 1 Description Line 32 36 Part 2 (4 points) Show...
Part 2 (1 point)
Rate 2 = molecules/(cm3·s)
Part 3
Rate 3 = molecules/(cm3·s)
Part 4
Rate 4 = molecules/(cm3·s)
@ See page 639 02 Question (4 points) Dinitrogen pentoxide (N2O5) decomposes as follows to nitrogen dioxide and nitrogen trioxide: N,93(g) — NO2(g) + NO3(g) Calculate the average rate of the reaction between consecutive measurement times in the following table. Time (s) [N2O5] (molecules/cm3) 0.00 1.505x1012 1.55 1.444x1012 3.10 1.401x1012 4.65 1.370x1012 1.349x1012 6.20 v 1st attempt Part 1 (1 point)...
BOND RETURNS Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 10-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.3%. If Janet sold the bond today for $1,026.98, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places. % BOND VALUATION Madsen Motors's bonds have 12 years remaining to...
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