Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
$1,000 per year for 14 years at 4%.
$
$500 per year for 7 years at 2%.
$
$700 per year for 7 years at 0%.
$
Rework previous parts assuming they are annuities due.
Present value of $1,000 per year for 14 years at 4%: $
Present value of $500 per year for 7 years at 2%: $
Present value of $700 per year for 7 years at 0%: $
In: Finance
Suppose that a two-year bond with a principal of $100 provides coupons at the rate of 6% per annum semiannually. Suppose that the zero-rates are
| Maturity (years) | Zero Rate (%) |
| 0.5 | 5.0 |
| 1.0 | 5.8 |
| 1.5 | 6.4 |
| 2.0 | 6.8 |
What is the bond's yield to maturity expressed with the continuous compounding?
- please use the formulas and explain step by step
In: Finance
Suppose that a two-year bond with a principal of $100 provides coupons at the rate of 6% per annum semiannually. Suppose that the zero-rates are
| Maturity (years) | Zero Rate (%) |
| 0.5 | 5.0 |
| 1.0 | 5.8 |
| 1.5 | 6.4 |
| 2.0 | 6.8 |
What is the current theoretical price of the bond?
- please use formulas and explain step by step
In: Finance
1.The current price of a stock is $21. In 1 year, the price will be either $27 or $15. The annual risk-free rate is 6%. Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. Do not round your intermediate calculations.
2.The current price of a stock is $15. In 6 months, the price will be either $20 or $12. The annual risk-free rate is 3%. Find the price of a call option on the stock that has a strike price of $13 and that expires in 6 months. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume a 365-day year. Do not round your intermediate calculations.
In: Finance
As an Optional Challenge problem: create a balance sheet at end of year 8 on the accrual basis of accounting. Remember that for each event above, asset entries must equal entries for liabilities and stockholders’ equity (A = L + E).
In: Finance
An investor buys some shares of ABC for $20 at the beginning of the year. During the year he receives $0.50 in dividends, and then sells the shares for $21 at the end of the year. What is the total return on this investment?
In: Finance
You purchased shares in Home Depot at the beginning of the year for $55 a share. Home Depot paid a $3 dividend throughout the year, and its share price ended the year at $50. If inflation that year was 3%, what was the real holding-period return for the year?
Multiple Choice
-6.44%
-6.36%
-11.74%
-3.64%
In: Finance
By the end of this year you would be 35 years old and you want to plan for your retirement. You wish to retire at the age of 65 and you expect to live 20 years after retirement. Upon retirement you wish to have an annual sum of $50,000 to supplement your social security benefits. Therefore, you opened now your retirement account with 7% annual interest rate. At retirement you liquidate your account and use the funds to buy an investment grade bond which makes $50,000 annual coupon payments based on a 6 % coupon rate, throughout your retirement years.
Please calculate the monthly payment in your retirement account in order to be able to achieve the plan mentioned above?
In: Finance
Following are the transactions and adjustments that occurred
during the first year of operations at Kissick Co.
Required:
a. Prepare an income statement (ignoring income
taxes) for Kissick Co.'s first year of operations and a balance
sheet as of the end of the year. (Hint: You may find it
helpful to prepare a T-account for the Cash account since it is
affected by most of the transactions.)
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In: Accounting
The cost data for Evencoat Paint for the year 2019 is as follows:
| Month | Gallons of Paint Produced |
Equipment Maintenance Expenses |
|||||
| January | 110,000 | $70,700 | |||||
| February | 68,000 | 66,800 | |||||
| March | 71,000 | 67,000 | |||||
| April | 77,000 | 68,100 | |||||
| May | 95,000 | 69,200 | |||||
| June | 101,000 | 70,300 | |||||
| July | 125,000 | 70,400 | |||||
| August | 95,000 | 68,900 | |||||
| September | 95,000 | 69,500 | |||||
| October | 89,000 | 68,600 | |||||
| November | 128,000 | 72,800 | |||||
| December | 122,000 | 71,450 | |||||
A. Using the high-low method, express the company’s maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs.
Fixed cost $ 60,000
Variable cost $
Need help with variable cost.
In: Accounting