A 30-year corporate bond has a face value of $1,000 and a coupon rate of 6% paid annually. At the end of year 12 the Yield to Maturity is 8%. a. How much money will the holder of the bond receive at the end of year 30? b. What is the bond’s price at the end of year 12? c. What will the bond’s interest payment be at the end of year 12? d. If the Yield to Maturity later decreases from 8% to 5%, will the bond sell at a discount, premium, or par value?

Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,800 hours and the total estimated manufacturing overhead was $497,040. At the end of the year, actual direct labor-hours for the year were 21,500 hours and the actual manufacturing overhead for the year was $492,040. Overhead at the end of the year was: (Do not round your intermediate calculations.)

A) $6,840 overapplied

B) $6,840 underapplied

C) $1,840 underapplied

D) $1,840 overapplied

A basic arm is made for $200000 at an initial interest rate of 6 percent for 30 years with an annual reset date. The borrower believes that the interest rate at the beginning of year 2 will increase to 7 percent.

(a) Assuming that a fully amortizing loan is made, what will the monthly payments be during year 1?

(b) Based on (a), what will the loan balance be at the end of year 1?

(c) Given that the interest rate is expected to be 7 percent at the beginning of year 2, what will the monthly payments be during year 2?

PLEASE SOLVE IN EXCEL WITH CALCULATIONS AND WORK.
A mortgage for $100,000 is made with initial payments of $500 per month for the first year. The interest rate is 9 percent. After the first year, payments will increase to an amount that makes the loan fully amortizable over the remaining 24 years with constant monthly payments.
a. Calculate the interest deductions for the loan for the first year.
b. How much, if any, interest must be deferred until the second year?
c. How much interest will be deducted in the second year?

Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 9.92 percent. The initial outlay for the project is $368,538. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $155,548

Year 2: $144,874

Year 3: $15,293

Year 4: $374,481

Round the answer to two decimal places.

How do I do this in excel?

A firm has generated $150 million in earnings before interest and taxes last year and expects these earnings to grow 10% a year for the next 3 years. The firm is expected to generate a return on capital of 20% on new investments for the next 3 years, and there is no efficiency growth. After year 3, the firm will be in stable growth, growing 3% a year in perpetuity, with a return on capital of 12% and a cost of capital of 10%. The corporate tax rate is 30%. Estimate the terminal value of the company at the end of year 3

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is 5.4 %, what are the NPVs of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

Robert purchased a new copy machine for his business. The copy machine was purchased for $10,000 and is expected to generate the following cash flows for the next four years: Year 1:$3000, Year 2:5000, Year 3: 3600, Year 4: 1500. Assume the copy machine can be sold for $1800 at the end of year 4. Robert’s required rate of return is 5%. What is the net present value and should the machine be purchased? What is the internal rate of return?

Question 4 25 Marks Jimmy Reynolds is considering investing R12,000 in a project with the following cash revenues and expenses: Revenues Expenses Year 1 R20,000 R18,000 Year 2 R22,000 R19,000 Year 3 R22,000 R20,000 Year 4 R22,000 R17,000 Year 5 R25,000 R17,000 Jimmy requires a minimum rate of return of 8%. A. Calculate the net cash inflows in each of the 5 years. B. What is the payback period? C. What is the net present value of the investment?