Today is 1 July, 2019. Latha has a portfolio which consists of two different types of financial instruments (h Latha purchased all instruments on 1 July 2013 to create this portfolio, which is composed of 35 units of in • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity • Instrument B is a Treasury bond with a coupon rate of j2 = 4.87% p.a. and a face value of $100. This b Calculate the current price of instrument B per $100 face value. Round your answer to four decimal place received her coupon payment.
Q: Fill in the missing amounts in each of the eight case situations below. Each case is independent of…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: The adjusted trial balance for Sunland's Animations is presented below. Cash SUNLAND'S ANIMATIONS…
A: Income statement is one of the financial statements that shows the profitability, total revenue and…
Q: ecord the following journ ent es
A: In the United States a private trustee is a position set up through a trust indenture. It is a…
Q: Assets Cash FRANKLIN CORPORATION Balance Sheet As of December 31, Year 4 Accounts receivable (net)…
A: INTRODUCTION:A stockholder is a corporation shareholder or a person who owns at least one share of…
Q: Prepare Whispering Winds's 2020 entries to record all transactions and events related to the…
A: Dividend Declared=11Whispering purchase interest=25%Whispering interest in dividend=11 x…
Q: During November, 35,650 units were manufactured and 8,710 units were in beginning inventory.…
A: Absorption costing is one method used to allocate production costs to products. It is required by…
Q: Robinson Products Company has two service departments (S1 and S2) and two production departments (P1…
A: The various methods for cost allocation are classified as direct, step and reciprocal method. The…
Q: On January 1 of Year 1, Yogart Inc. signed a 10-year lease for its retail outlet. The lease…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: During Heaton Company's first two years of operations, it reported absorption costing net operating…
A: The net income is calculated as the difference between the sales and total costs incurred. The…
Q: Tropp Corporation sells a product for $10 per unit. The fixed expenses are $420,000 per month and…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.6%…
A: Projected benefit obligation is a measurement of the future pension liability of a company, It is…
Q: Which step are you performing in the depreciation expense recalculation?
A: An audit is defined as "an independent examination of financial data of any entity, whether…
Q: E 6-5 Performance obligations LO6-2,LO6-4,LO6-5 On March 1, 2024, Gold Examiner receives $147,000…
A: Revenue recognition is one of important accounting principle being used in business. As per this…
Q: tbook Problems Problem: Module 4 Textbook Problem 6 Learning Objectives: 4-2 Calculate ratios for…
A: INTRODUCTION:A stockholder is a corporate shareholder or a person who owns at least one share of an…
Q: Frankie's Chocolate Co. expects to sell the following units for $25/each. Expected Sales: July…
A: CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…
Q: As of January 1, 2020, Sandhill Inc. adopted the retail method of accounting for its merchandise…
A: Ending inventory is the amount of inventory that an entity has, in hand, at the end of the period.…
Q: An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: Required: Provide input into cells shaded in yellow in this template. Input the required…
A: It has been given that a finished goods inventory at the end of the month have to be 10% of the next…
Q: Tony invests $9,300 at 8% annual interest, leaving the money invested without withdrawing any of the…
A: To calculate the future value of an investment with simple interest, you can use the following…
Q: Kimball Manufacturing uses a process-costing system to manufacture Dust Density Sensors for the…
A: Process costing is one of useful form of costing being used in business. This is used where there is…
Q: Pacific Fisheries, Inc. processes salmon for various distributors. Two departments are…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Required information [The following information applies to the questions displayed below.] Rustafson…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: On December 31, 2023, Carla Vista Corporation, a public company, had the following shareholders'…
A: Journalizing is the process of recording financial transactions in a company's journal, summarizing…
Q: 3-2. (Preparing an income statement) Prepare an income statement and a common- sized income…
A: VERTICAL ANALYSIS OF BALANCE SHEETVertical analysis is a proportional analysis of financial…
Q: Carl's Com has total fixed costs of $20,990. If the company's contribution margin is 40%, the income…
A: The contribution margin ratio is a financial metric that calculates the proportion of sales revenue…
Q: Marigold Candies paid employee wages on and through Friday, January 26, and the next payroll will be…
A: Adjusting entries are journal entries that are passed at the end of accounting period to adjust the…
Q: Juniper Design Limited of Manchester, England, is a company specializing in providing design…
A: Residual income :— It is the difference between net operating income and the minimum desired return…
Q: Besides unsustainable economic and productivity costs, what is the third aspect of undue hardship…
A: Undue hardship is the point at which providing accommodations for an employee with a disability or…
Q: The Current Ratio for the current year is Blank 1.
A: The current ratio is a liquidity ratio that measures a company’s ability to pay short-term…
Q: Down Under Products' sales budget for the next four months is as follows: April May June July Unit…
A: The production budget is referred as a detailed plan that outlines number of units the company needs…
Q: A company sells sports equipment, and with each sale of a full set of equipment provides…
A: Revenue recognition is the process of identifying and recording revenue earned by a company in its…
Q: Leon Acrobats lent $12,174 to Donaldson, Inc., accepting Donaldson's 2-year, $15,000,…
A: The difference between Notes receivable and cash paid is called as discount on notes receivable.…
Q: Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 Sales…
A: Forecasting refers to the measure of the possible performance of an asset. It is usually calculated…
Q: Stormrage company has two processing departments. Units begin in the Firing Department and then are…
A: Work in progress means the goods which has started in production line but has not completed at the…
Q: Barga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its…
A: Days Sales Uncollected measures how long, on average, it takes for a company to collect payments…
Q: Problem 06-44 (LO 06-2) (Static) Cass Corporation reported pretax book income of $10,000,000. During…
A: The main objective of the business is to earn profit. The business generates income and pays taxes…
Q: Clarks Inc., a shoe retailer, sells boots in different styles. In early November, the company starts…
A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…
Q: Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two…
A: The various methods for cost allocation are direct, step and reciprocal method. Using reciprocal…
Q: Contribution Margin by Segment The following information is for Elm Leaf Apparel: Line Item…
A: Contribution is the amount of money earned by the entity after deducting the variable costs from the…
Q: Waterway Company has 2,040 pounds of raw materials in its December 31, 2021, ending inventory.…
A: Direct material budget is the one which is prepared by the entity for the purpose of estimating the…
Q: Lucas Corporation uses the weighted-average method in its process costing system. The company adds…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: On January 1, 20X5, Seymond Corporation issued $100,000 in 10-year, zero-coupon bonds. The interest…
A: Zero coupon bonds means those bonds which were issued for money or any assets but for which no…
Q: The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year,…
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: Assume the following information appears in the standard cost card for a company that makes only one…
A: The direct labor rate variance measures the difference between the actual hourly wage paid to…
Q: Munn Inc. reported its Other noncurrent asset account balances on December 31 of Year 2 as follows.…
A: Intangible assets are typically intellectual assets. Because of how intangible assets are…
Q: Company reports the following for its single product. Ramort produced and sold 21,200 units this…
A: The absortion costing assumes both fixed and variable costs are to be included in the product costs.…
Q: On December 31, 2025, Sheridan Co. performed environmental consulting services for Hayduke Co.…
A: An interest-bearing note is a financial instrument, typically a promissory note, that requires the…
Q: The following is an account for a production department, showing its costs for one month: Initial…
A: FIFO is first in first out method of inventory management. Under this, equivalent production units…
Q: Ivanhoe Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the…
A: Break Even Point -Break Even point is a point where the company earns no profit or loss for the…
Q: A company's budgeted sales in units for the next three months follow. The company wants to maintain…
A: Lets understand the basics.Production budget is prepared by the Business Entity to provide for the…
Step by step
Solved in 3 steps with 2 images
- Today is 1 July, 2019. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on 1 July 2012 to create this portfolio, which is composed of 34 units of instrument A and 28 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of J₂=4.18% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current duration of Siobhán's portfolio using a yield to maturity of j₂=4.52% p.a. Express your answer in terms of years and round your answer to two decimal places. O a. 5.23 years b. 7.00 years O c. 5.56 years O d. 6.49 yearsToday is 1 July, 2019. Camilla has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Camilla purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 22 units of instrument A and 22 units of instrument B. • Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. • Instrument B is a Treasury bond with a coupon rate of j2=3.46% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. What is the duration of instrument B? Express your answer in terms of years and round your answer to three decimal places. Assume a yield rate of j2=2.99% p.a. a. 4.834 years b. 2.876 years c. 5.753 years d. 2.417 yearsToday is 1 July 2021. Joan has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Joan purchased all instruments on 1 July 2016 to create this portfolio and this portfolio is composed of 242 units of instrument A and 455 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of j2 = 3.14% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2024. (a) Calculate the current price of instrument A per $100 face value (today's value). Round your answer to four decimal places. Assume the yield rate is j2 =3.93% p.a.
- Q1. A firm has just issued (January 1, 2019) a bond that has a face value of $1,000, a coupon rate of 6 percent paid semi-annually (June 30, December 31), and matures in 8 years. The bonds were issued with a yield to maturity of 7%. What price were the bonds issued at? Assume that on July 1, 2021, the bond trades to earn an effective yield of 10%. At what price should this bond be trading for on July 1, 2021? PRICE WHEN ISSUED: PRICE ON JULY 1, 2021:A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.45 percent, and the bond has a yield to maturity of 4.66 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) X Answer is complete but not entirely correct. Macaulay duration Modified duration 12.0670 11.5297A Treasury bond that settles on October 18, 2019, matures on March 30, 2038. The coupon rate is 5.50 percent, and the bond has a yield to maturity of 4.73 percent. What are the Macaulay duration and modified duration? (Use the duration functions in Excel to solve the problem. Do not round intermediate calculations. Round your answers to 4 decimal places.) Macaulay duration Modified duration 12.0200
- 00:07:51 Today is 1 July, 2019. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on 1 July 2011 to create this portfolio, which is composed of 21 units of instrument A and 39 units of instrument B. Instrument A is a zero-coupon bond with a face value of $100. This bond matures at par. Its maturity date is 1 January 2029. Instrument B is a Treasury bond with a coupon rate of j2=2.29% p.a. and a face value of $100. This bond matures at par. Its maturity date is 1 January 2022. Calculate the current duration of Siobhán’s portfolio using a yield to maturity of j2=2.58% p.a. Express your answer in terms of years and round your answer to two decimal places.Today is 1 July 2020. Siobhán has a portfolio which consists of two different types of financial instruments (henceforth referred to as instrument A and instrument B). Siobhán purchased all instruments on1 July 2011 to create this portfolio and this portfolio is composed of 26 units of instrument A and 45 units of instrument B. Instrument A is a zero-coupon bond with a face value of 100. This bond matures at par. The maturity date is 1 January 2030. Instrument B is a Treasury bond with a coupon rate of = 4.9% p.a. and face value of 100. This bond matures at par. The maturity date is 1 January 2023. Calculate the current duration of Siobhán's portfolio using a yield to maturity of = 4.39% p.a. Express your answer in terms of years and round your answer to two decimal places. a. 4,34 b. 5.73 c. 6.42 d. 4.13A bond has following characteristics: it was issued on 14.06.2018 and has 10 years to maturity. Coupon is paid semi-annually and carries interest rate of 3,2%. Market interest rate is currently 2,9% for similar issues. Investor purchased the bond on 19.11.2021. a. Calculate MacDuration b. Calculate ModDuration c. When market interest rates increase by 50 basis points, calculate price effect using results obtained in question (b)
- Do all 3 parts Its 1 July 2020. Greg is planning to purchase a corporate bond with a coupon rate of j2 = 1.68% p.a. and face value of 1000. This corporate bond matures at par. The maturity date is 1 July 2022. The yield rate is assumed to be j2 = 6.15% p.a. Assume that this corporate bond has a 3.69% chance of default in the first six-month period (i.e., from 1 July 2020 to 31 December 2020) and this corporate bond has a 3.01% chance of default in any six-month period during the term of the bond except the first six-month (i.e., 3.01% chance of default in any six-month from 1 January 2021 to 1 July 2022). Assume also that, if default occurs, Greg will receive no further payments at all. Australian bonds (a) What is the expected coupon payment on 1 January 2021? a. 7.8487 b. 8.1472 c. 8.0900 d. 7.8465 (b) What is the expected coupon payment on 1 January 2022? a. 6.9494 b. 7.8465 c. 7.6103 d. 7.5570 (c) Calculate the purchase price of this corporate bond. Round your answer to…Today is 15 May 2021. Stéphanie has just purchased a Treasury bond with a face value of $100, maturing at par and paying coupon at j2 = 3.4% p.a. The purchase price was $99.906. The maturity date of this bond is 15 May 2023. d) Which of following statements is incorrect? O a. We can use the duration of this Treasury bond to measure its price sensitivity. O b. The duration of this Treasury bond will be higher if its coupon rate is higher. O c. The purchase price (i.e., 99.906) of this Treasury bond will increase if the yield rate at purchase is lower. O d. The purchase price of this Treasury bond will decrease, if this Treasury bond is subject to a 30% tax on interest and capital gain.6. Today is March 31, and corporation RPK plans to issue $450 million in 30-year bonds on May 15th. These bonds are priced at par and have a modified duration of 15. RPK wants to hedge their interest rate risk using June T-bond futures contracts which have a price of 95 3/32 and a modified duration of 10. Show the following: How would RPK hedge in this situation using T-bond futures contracts? (Be specific) Show the net loss/gain if on May 15 the bond price is 96.22 and the June T-bond futures price is 92 6/32, Round to 4 decimals