Answer:
The correct answer is I, II and III.
Explanation:
The return that an investor earns with a bond can be calculated in different ways. The price of the bonds fluctuates with the change in interest rates, but once the investor buys a bond, the return is fixed. The yield to maturity is a way of providing the investor with the most accurate representation of the return he will receive for the holding of said bond.
Types of bond yield
Based on the current price, a bond shows three different types of maturity. The yield of the coupon is the interest rate paid by the bond at face value. A US $ 10,000 bond with a 6 percent interest coupon pays US $ 300 interest every 6 months. The current return is the coupon rate divided by the bonus price. If the bond with a nominal value of US $ 10,000 and a 6 percent coupon rate can be purchased for US $ 9,600, its current yield is 6.25 percent. The yield at maturity is the internal rate of return of the bond based on the time remaining for the bond's maturity.
Expiration Yield
The calculation of the yield at maturity amortizes the value of the premium or the discount (bonds over and under the pair) in the price of the bond throughout the life of the bond. For example, if the bond that pays 6 percent of the aforementioned coupon rate expires in 10 years, and is priced at US $ 9,600, the yield at maturity is 6,558 percent. If two bonds, one on the pair and one under the pair, have the same yield at maturity, any of them represents the same level of return for the investor. The yield at maturity is what the investor will receive if the bond is purchased at the current market price and held until maturity.
Answer:
The correct answer is a Fee simple defeasible estate.
Explanation:
A fee simple defeasible estate is a type of property that has some conditions attached to it. In case the conditions are not conformed the estate goes back to the grantor.
The holder of such an estate holds it as a fee simple subject to that condition. If the given condition is not met the estate either goes to the original grantor or to a third party.
Answer:a debit to Cost of Goods Sold and a credit to Merchandise Inventory for $217
( The answer Is not in the options given)
Explanation:
The Perpetual inventory is a method of accounting for inventory which immediately records when an inventory is sold or purchased using the available point-of-sale software systems of the particular business.
In that regard , the entry to record cost of merchandise sold
Account titles Debit Credit
Cost of goods (Merchandise sold) $217
Merchandise Inventory $217
Answer:
$0.15 hours per unit
Explanation:
Given that
Direct material cost = $16
Assume Direct labor cost = X
Manufacturing overheads = $18
Profit margin = 20%
Direct labor per hour cost = $28
The computation of direct labor-hour input is shown below:-
Total manufacturing cost = X + $34
Total cost of goods sold = (X + $34) × 1.7 = $66
Direct labor cost per unit
= (X + $34) = $38.82
= $38.82 - $34
= $4.32
Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost
= $4.32 ÷ $28
= $0.15 hours per unit
Answer and Explanation:
A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain
Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain
Both designs are assumed to be permanent
To find ROR using AW based rate of return equation, we find present value of each design and equate them:
Each design is permanent so
Present value of perpetuity:
Design 1A= 1700000+175000/r
Design 1B = 3600000+40000/r
=1700000+175000/r=3600000+40000/r
135000/r=1900000
Cross multiply
r=135000/1900000
r= 0.0710
r=7.10%
B Given that ROR=7.10% and MARR is 25%
MARR>ROR
Hence we reject both designs
