The function s(t) = 0.035 +0.0031 gives the effective annual rate of a zero coupon bond of maturity f, with tin years. Find the price of a 2 year coupon bond with semiannual coupons of 7.5% and a face/redemption value of $700,000.

Q: is the annual effective rate of interest earned on

A: The effective interest rate is considering effect of the compounding of the interest rate and this…

Q: The Two Dollar Store has a cost of equity of 12.3 percent, the YTM on the company's bonds is 5.8…

A: Solution: Given , Cost of Equity (Ke) = 12.3% Pre- tax cost of debt = 5.8% Tax rate = 21% Post tax…

Q: require a $10,000 increase in net operating working capital (spare parts inventory). The project…

A: In capital budgeting decision making the investment are checked for the time value and interest and…

Q: Why is bond demand curve downward slopping? Why is bond supply curve upward slopping?.

A: Introduction :- Ans-1 The downward sloping of the bond demand curve is due to the fact that when the…

Q: compute the variable cost per unit if variable manufacturing cost per unit is 75.5 and variable…

A: Variable manufacturing cost per unit = 75.5 Variable selling cost per unit = 37.6   Variable cost…

Q: 8. Daryl wants to have a total of P4000 in two years so that he can have an upgrading of his bike.…

A: Value of deposit that Daryl should put into his account today is calculated using following equation…

Q: The balance in the saving account increased by 1.5% in one year to $20,150. How much was in the…

A: In the given question there is increase in saving account by 1.5% in one year and the balance now is…

Q: A $700,000 loan was received on Nov. 30, 2022, with annual interest at 9.5%, C/M, requires monthly,…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: Chatham Automotive purchased new electric forklifts to move steel automobile parts two years ago.…

A: Concept. EAC .( equated annual cost). equated annual cost is used to compare two alternatives  .…

Q: oni i fiton ten a notio erit ferit vtilis 019911 Task 1: A U.S.-based company imports furniture from…

A: An importer has to make foreign currency payment in the future and is prone to the risk of…

Q: Importance of having life insurance

A: Life insurance is an invaluable asset for many people and their families. It is a contract between…

Q: After recapitalization, what is the cost of equity?

A: The cost of equity associated with no debt in the capital structure is the unlevered cost of equity.…

Q: You are to compare two mutual funds' performance: Mutual Fund A has 15% return and 11% standard…

A:

Q: Firms HL and LL are identical except for their financial leverage ratios and the interest rates they…

A: The company’s financial leverage can be determined by using by debt to capital ratio. This ratio…

Q: January 1, ABC Company, whose stock is publicly traded, had 100,000 shares of common stock ued and…

A: Dividends are paid out of net income of the company. Dividends are paid in the form of cash and also…

Q: Complete the following table: (Use Table 15.1.) Note: Round your intermediate calculations and…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: you invest $10,000 in an account that earns an APR of 5% with monthly compounding, what will be the…

A: More is the compounding than more will be effective interest rate and more interest will collect…

Q: Determine  EVA when net operating porofit is $1128000 initial cost of investment is $55 lakh & cost…

A: Solution:  Given,  Net Operating Profit = NOPAT =$11,28,000 Initial cost of investment = Capital…

Q: company sponsors a 401(k) plan into which you deposit 10 percer nt of percent of the first 10…

A: 401(K) is one of the profit sharing plan in which there is contribution from employee and also…

Q: What is the net income for the year?

A: Net income = Amount paid in dividends + (Decrease in retained earnings)

Q: Sally's favorite department store is offering an incredible deal this week on their store credit…

A: Answer  The store has the biggest sales of the year and store is offering 50% off on spent of $100.…

Q: Albert made investments of $1000 each for two years. The first one at an interest of 4.8% compounded…

A: Future value of investment is calculated using following equation Future value = PV×1+rmn×m Where,…

Q: Following the birth of a child, a parent wants to make an initial investment Po that will grow to…

A: Future Value = Present Value x enr where n- Number of years r- Compounding Rate

Q: The effective rate of interest is 6% per annum. An annuity is payable annually in arrears for 25…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: 12. How will the decision to capitalize a cost instead of expensing the cost impact the Alpha X…

A: In finance in the income statement different expenses are shown. This is expensing the cost. In…

Q: Find the compound amount for the following certificate of deposit. Assume daily compoundings…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: AllCity, Inc., is financed 37% with​ debt, 11% with preferred​ stock, and 52% with common stock. Its…

A: Cost of preferred stock = DP0 Where, D is annual dividend per share P0 is current price of the stock…

Q: For the table, can I please get the manual workings and not the excel sheet for the nine line items,…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: what is the value today of a security that will pay you $46 in three years and $87 six years from…

A: The concept of TVM states that the interest-earning capacity makes the money earned today more…

Q: Fully discuss the Arbitrage Pricing Model. Show formula and give examples.

A: There are multiple methods that estimate the stock's required return. The capital asset pricing…

Q: Your employer offers a 401(k) plan with a 25% match, and you set a goal of retiring in 25 years with…

A:

Q: a) Assume the euro's spot price at the expiration date (market price) is *123/€ The investor's…

A: A put option starts making profit when the spot price at expiry is below the strike price. The value…

Q: Daniel purchases a perpetuity with varying annual payments made in arrears. During the first 5…

A: Perpetuity is cash flows received at fixed intervals for an indefinite period. The cash flows may be…

Q: A firm has 1 million shares of common stock, 100,000 shares of preferred stock, and 50,000 bonds.…

A: Given: Particulars Shares Price Common stock                1,000,000 $59 Preferred stock…

Q: Johnson Inc. wishes to expand its facilities. The company currently has 6 million shares outstanding…

A: The price-earning ratio is a method that measures the prices of the stock to its earnings per share.…

Q: An investment of $50,000 is made to purchase machinery that will allow us to manufacture product.…

A: Break even point is where all costs are covered and there is no profit and there is no loss and…

Q: Ma1. Please give only typed answer. You are considering buying a municipal bond with a 10-year…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: Aranufacturer of video games develops a new game over two years. This costs $800,000 per year with…

A: NPV is used to measure the profitability of a project. It discounts all future cash flows to…

Q: QUESTION 10 A Private Joint Stock Company must allocate 15% of its net profit each year to create a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: St. Johns River Shipyards is considering the replacement of an 8-year-old riveting machine with a…

A: Concept.  Net present value is calculated by deducting initial investment from present value of cash…

Q: When the forward rate is equal to the expected future spot rate, the forward rate is said to be…

A: Forward contract are settled in the future times and related to spot rate and they derive value from…

Q: Pulaski Starlight Inc. is evaluating a project. The project is expected to generated new sales of…

A: Compute the year 3 depreciation expense, using the equation as shown below: Depreciation=Equipment…

Q: Hartman Motors has $8 million in assets, which were financed with $4 million of debt and $4 million…

A: Unlevered beta is the beta for a company with zero debt I its capital structure. In that case, the…

Q: The Effect of Compounding 4. Use the TVM Calculator to fill in the following table given that the…

A: Data given: PV=-$1000 N=1/2/12/52/365 PMT=0 I/Y=6 CPT FV=?

Q: The variance of returns is 0.09 for Bitcoin (BTC) and 0.04 for PayPal Holdings, Inc. (PYPL). The…

A: The correlation between stocks refers to the relationship between the returns of the stocks. A…

Q: a share and outstanding debt of $30 million. The debt interest rate percent and the tax rate is 35…

A: Market capitalization shows the number of shares that are outstanding at given points of time…

Q: rm has a perpetually growing unlevered cash flow equal to 430,000. The growth rate is 2.00%. The…

A: The debt are important source of finance to the company and company use this money for expansion and…

Q: What is the Net Loan Amount (after any fees) of a 15-year $790,000 FRM loan with 8 points of…

A: The time period of the Loan is 15 years The loan amount is $790,000 The origination fee is 8 points…

Q: Five years ago, you acquired a 30-year loan of $130,750, charging 6.7% annual interest, compounded…

A: A loan is an agreement where money is forwarded in exchange for a promise of repayment with interest…

Q: Sfundo Limited Sfundo Limited enters into a contract with Pro Tech Limited for the rental of a…

A: Sfundo Limited   Lease payment -50000 per year Commision - 10461 Interest rate - 5%…