000 par value‚ and the coupon interest rate is PMT=8%. The bonds have a yield to maturity of I=9%. What is the current market price of these bonds? $928.39 Calculator solution: Input: N = 12‚ I = 9‚ PMT = 80‚ FV = 1000‚ Solve for PV = $928.39 (5–2) Yield to Maturity for Annual Payments Wilson Wonders’s bonds have 12 years remaining to maturity. Interest is paid annually‚ the bonds have a $1‚000 par value‚ and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield
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Quantity theory of Money assumes that V is constant and exogenous. Inflation= Change in the Money Growth- Change in the GDP Growth Using the above values Inflation= 14% - 5% = 9% Thus; Real Interest Rate = 11%- 9%= 2% Therefore the real interest rate is adjusted for inflation. Q.2 Suppose a country has a money demand function (M/P)d = kY‚ where k is a constant parameter. The money supply grows by 12% per year‚ and real income grows by 4% per year. (a) What is the average inflation rate?
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Learning activity 2 ch 3-U2 Read chapter 3‚ Demand and Supply‚ of your textbook. Answer the questions below. If a different source is used‚ identify your reference (title‚ author‚ edition‚ page‚ web page‚ date) as a footnote. Copy and paste are not allowed. Show how you obtained your final result. Take into account the due date for submitting assignments. 1. When do we say that two commodities are complements or substitutes? 2. 2. When do we classify goods as normal or inferior? According
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Managerial and Financial Accounting Report FIN540 Accounting for Managerial Decision Making Abstract Financial accounting develops account information that is used by external parties such as stockholders‚ suppliers‚ banks‚ and government regulatory agencies in their decision-making. Management accounting develops confidential accounting information that is used by managers within an organization. Management accounting is a complex process of identifying‚ accumulating and analyzing information
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Q1: There are two different types of cost accounting systems: Job order cost systems and process cost systems. How does management decide whether to use a job order cost system or a process cost system in any given manufacturing situation? Explain. Job order cost system is used in situations where many different products are produced each period. For example‚ a Levi Strauss clothing factory would typically make many different types of jeans for both men and women during a month. A particular order
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unique prediction of the likely out-come of a game. Use the following to answer Questions 2–4: Consider the following information for a simultaneous move game: Two discount stores (mega-store and superstore) are interested in expanding their market share through advertising. The table below depicts the strategic outcomes (profits) of both stores with and without advertising. Payoffs for Megastore are in black. 2. The Nash equilibrium for both stores is for Megastore to advertise and for Superstore
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Problem 19-2: Vt. Sugar Enterprises Given: Syrup Sugar Total Units produced 20‚000 1‚000 21‚000 Unit selling price $15.00 $2.00 Total process costs: After split-off $12‚000 $280 $12‚280 Joint costs $100‚000 a. Calculate the cost of the syrup if the sugar is considered a by-product and the gross margin from its sale is considered to be a reduction of syrup costs. Products Sales Value Costs beyond split-off Difference Joint costs allocation Syrup $300‚000 12‚000 288‚000
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7: Tom’s Used Mustangs Applied Managerial Statistics I. Executive Summary The data file named “MUSTANGS”‚ contains observations on 35 used Mustangs with a variation of 10 different characteristics[1]. This file was used to prepare a report on the influence of various options on asking price and to relay how this information could be used to set prices on used Mustangs. Statistical analysis by Hypothesis Testing and Multiple Regression Analysis was performed on the asking prices for
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wash out to sea would be silly. You might be tempted to reply "Wait‚ isn’t the original owner of the bill worse off?" The answer is "No" because it’s important to distinguish between two different events: (1) the original owner losing the bill‚ and (2) the other person finding it. The original owner definitely became worse off when he lost the bill. However‚ once the bill is gone‚ he’ll be the same whether someone picks it up or it washes out to sea. (Peter J Wilcoxen‚ 2011) Pareto efficiency is
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April purchases 110‚000 $110‚000 220‚000 May purchases 146‚250 $146‚250 292‚500 June purchases 105‚000 105‚000 Total cash payments $195‚750 $256‚250 $251‚250 $703‚250 2. Cravat Sales Company Cash Budget For the Three Months Ending June 30 April May June Quarter Cash balance‚ beginning $ 14‚000 $ 10‚250 $ 10‚000 $ 14‚000 Add receipts from customers (Part 1 b.) 230‚000 286‚000 370‚000 886
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