production at south side assemblers last quarter was 178,500 units. if the company expects to produce 9.5% less units this quarter, how many units do they expect to produce this quarter?

Answers

Answer 1

The units I would expect to produce this quarter given the percentage decrease is  161,542.50 units.

What is the units expected this quarter?

Given the information provided in this question, the units produced this year would be 9.5% lesser than it was in the last quarter.

Percentage is the rate of an amount expressed as a number out of 100. The sign that represents percentage is %. In order to change a number to percentage format, multiply the number by 100.

Units produced this year = (1 - percentage change) x units produced last year

(1 - 0.095) x 178,500 units

0.905 x 178,500 units = 161,542.50 units

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Related Questions

which of the following are reasons that a monopolist is considered to have market power? select all that apply. multiple select question. the monopolist exerts some control over the price. the monopolist controls the quantity supplied. the monopolist controls demand. the monopolist controls marketing.

Answers

The monopolist exerts some control over the price .

Why a monopolist has market power?

A noncompetitive firm with market power, defined as the ability to set the price of a good. A monopolist is considered to be a price maker, and can set the price of the product that it sells.

How does a monopoly establish market power?

First, by denying inputs to its rivals, the excluding firm materially raises its rivals' costs. Second, by thus precluding the competitive check on its price and output decisions that those rivals provide, the excluding firm thereby gains the power to price in its output market above the competitive level.

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what is the present value of your trust fund if you have projected that it will provide you with $50,000 7 years from today and it earns 10% compounded annually? $29,411.76 $25,000.00 $28,223.70 $25,657.91

Answers

Since the interest is 10% compounded annually, the present value of your trust fund is  $25,657.91

The formula for the future value with compound interest:

FV = P (1 + r)ⁿ

Where:

P = present value

r = interest rate per period

n = number of periods.

Parameters given from the problem:

FV =  $50,000

n = 7 years

r = 10% = 0.1

Hence,

50,000 = PV (1 + 0.1)⁷

PV = 50,000/1.1⁷

     = 25,657.91

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biff deposited​ $9,000 in a bank​ account, and 10 years later he closes out the​ account, which is worth​ $18,000. what annual rate of interest has he earned over the 10​ years?

Answers

10% is the annual rate of interest has he earned over the 10​ years when he deposited​ $9,000 in a bank​ account, and 10 years later he closes out the​ account, which is worth​ $18,000.

What is interest?

Interest is the idea that one party should be compensated for taking a risk and giving up the chance to use funds, while another party should be punished for using someone else's money. The person who temporarily part with their money is entitled to compensation, and the person who temporarily uses those funds is frequently required to make this payment.

Interest is credited to your account when you keep money in your savings account. This is so that you can receive interest payments on the loans the bank makes with your funds to other customers.

Simple Interest Formula

A = P(1 + rt)

Here,

A = $18,000

P = $9,000

t = 10​ years

r = to find

Substituting the values we get

⇒ 18,000 = 9000(1 + 10r)

⇒ 9000(1+10r )= 18000

⇒ 9000+90000r = 18000

⇒ 90000r = 9000

⇒ r = 9000/90000

⇒ r = 1/10

​⇒ r = 10%

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assume the following information: milling department materials conversion total cost of beginning work in process inventory $ 10,000 $ 15,000 $ 25,000 costs added during the period 291,600 385,000 676,600 total cost $ 301,600 $ 400,000 $ 701,600 assume the equivalent units of production for materials and conversion are 5,200 units and 5,000 units, respectively, using the weighted-average method. if 4,620 units were completed and transferred to the next department, then what is the total cost of the ending work in process inventory in the milling department?

Answers

The total cost of the ending work in process inventory in the milling department is $39,200

Given,

Total cost of beginning work in process inventory = $10,000  $15,000 $25,000

Costs added during the period = $291,600  $385,000  $676,600

Total cost = $301,600  $400,000  $701,600

Thus, the computation of the total cost of ending work in process is shown below:

Equivalent cost per unit

Material = $301,600 ÷ 5,200 units  = $58 per unit

Conversion = $400,000 ÷ 5,000 units = $80 per unit

Now, ending work in process is calculated below-

= 400 units × $58 + 200 units × $80

= $23,200 + $16,000

= $39,200

Hence, the total cost of ending work in process is $39,200.

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adams, inc. has sales of $100,000 with a contribution margin of $60,000 and net income of $20,000. baron, inc. has sales of $110,000 with a contribution margin of $44,000 and net income of $22,000. thus, the degree of operating leverage is for adams, inc. and for baron, inc.

Answers

The degree of operating leverage is 3 for Adams, Inc. and 2 for Baron, Inc.

What is operating leverage?How well revenue growth translates into increased operational income is determined by operating leverage. It serves as a gauge for both leverage and how uncertain or unstable an organization's operating income is.The amount that a company's operating income varies in reaction to a change in sales is measured as operating leverage. The DOL ratio helps analysts assess how any change in sales will affect the company's profitability.You can increase operating leverage by reducing costs in a way that doesn't limit your potential to expand, in addition to establishing criteria for when to raise operating costs. Technology, particularly on the financial and accounting side, is one method Murray uses to accomplish this.

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Aree's marginal utility for eating summer rolls is 20 for the first one, 17 for the second, 14 for the third, and 8 for the fourth . Aree's total utility after eating three summer rolls is

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Aree's total utility, which is the total additional or marginal utility that arises from each additional unit of consumption, is 51 units after consuming three summer rolls.

How does marginal utility work?

The term "marginal utility" refers to the added pleasure a consumer receives from possessing one extra unit of a good or service. The concept of marginal utility is used by economists to predict how much of a good consumers would purchase. Utilizing the rule of diminishing marginal benefit, progressive taxation is frequently justified.

How are marginal utilities determined?

According to the general economics rule, marginal utility is equal to the total utility change divided by the change in the number of commodities. The equation appears as follows: Marginal utility is calculated by dividing the total utility difference by the difference in the cost of the goods.

The total utility formula is what?

Total utility is the total additional or marginal utility that results from each additional unit of consumption. Therefore, the following formula can be used to get the total utility: T U = ∑ M U. (OR) (OR) T U = M U 1 plus M U 2 plus M U 3 plus.

In the above question

Total utilitty=  ∑ M U or sum of all marginal utility

Marginal utility from first one= 20

Marginal utility from second one= 17

Marginal utility from third one= 14

Marginal utility from fourth one= 8

Total Utility= ∑ M U

= 20+ 17+ 14+ 8

=51 units

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on may 1, 2021, meta computer, inc., enters into a contract to sell 5,700 units of comfort office keyboard to one of its clients, bionics, inc., at a fixed price of $96,900, to be settled by a cash payment on may 1. delivery is scheduled for june 1, 2021. as part of the contract, the seller offers a 25% discount coupon to bionics for any purchases in the next six months. the seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. based on experience, meta computer estimates a 50% probability that bionics will redeem the 25% discount voucher, and that the coupon will be applied to $57,000 of purchases. the stand-alone selling price for the comfort office keyboard is $19.00 per unit.

Answers

Journal entries define how transactions influence accounts and balances and act as a simple record of all transactions that a business makes.

What is meant by Journal Entry?

The date, the amount to be credited and debited, a brief description of the transaction, and the accounts involved are all included in each journal entry along with other information pertinent to a single business transaction. Depending on the business, it could include a list of the impacted subsidiaries, tax information, and other details.

1. There are two obligations in this contract

a. keyboard

b. Customer option exists for future discount

2.Cash Dr,                          $69,700

   To Deferred revenue - keyboard        $66,215

   To Deferred revenue - discount coupon of $3,485

Keyboards = 4,100 × $19 = $77,900

Option = $41,000 × (0.25 - 0.05) × 0.50 = $4,100

Allocation

For keyboard = $77,900 ÷ ($77,900 + 4,100) = 0.95

Deferred revenue Keyboard = $69,700 × 0.95 = $66,215

Option = 4,100 ÷ ($77,900 + 4,100) = 0.05

Deferred revenue - discount coupon = $69,700 × 0.05 = $3,485

3. Cash Dr,                         $69,700

To Deferred revenue Keyboard       $69,700

(Being cash is recorded)

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rodrigo is a chemical engineer at blue ox chemicals. he is the only hispanic employee in his department. he is terminated after 10 months on the job based on poor performance. according to his supervisor, rodrigo continued to be the least productive employee in the department is spite of frequent feedback and training given to him. rodrigo believes he has a good claim for discrimination because he was the only hispanic in the department.

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hispanic employee in his department. he is terminated after 10 months on the job based on poor performance. according to his supervisor, rodrigo continued to be the least productive employee in the department is spite of frequent feedback and training given to him. rodrigo believes he has a good claim for discrimination because he was the only hispanic in the department.

in a given year, country a exported $12 million worth of goods to country b and $6 million worth of goods to country c; country b exported $4 million worth of goods to country a and $7 million worth of goods to country c; and country c exported $5 million worth of goods to country a and $2 million worth of goods to country b. according to scenario 4-1, country c has net exports of:

Answers

The value of net exports by Country C is $-8 million.

What is net exports?

Export would comprise of goods and services produced in one country that is being sold to foreign countries. Import would comprise of foreign produced goods and services that are produced in a foreign country and is been sold in a home country.

Net export is the difference between export and import.

Net export = export - import

Value of good imported to Country C = $6 million + $7 million = $13 million

Value of goods exported by Country C = $5 million

Net export = $5 million - $13 million = $-8 million

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How are Video Game Designers and Astronomers Alike and Different?

Answers

Answer:

While video game designers are involved in all the creative aspects of making a game, game developers or programmers are responsible for the actual coding and technical aspects of putting a game together.

Explanation:

if the interest charge for the current month for a standard home loan is $1,000.00, and the stated interest rate is 4.0 percent per year, what is the current balance on the loan?

Answers

The current balance on the loan is $300,000

This is the total interest charged on your credit card debt, split down into three categories: purchases, cash advances, and balance transfers. If you make a partial payment or make a payment beyond the due date, interest will be applied. If you don't make a monthly payment by the due date on your credit card balance, interest is charged. Interest accrues everyday when you hold a balance from month to month based on the so-called Daily Periodic Rate (DPR). DPR is only another term for your daily interest charge.

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explain the safety and ethics that are involved in being a martial-arts instructor

Answers

A high degree of socially conscious behavior that exemplifies the essence of martial arts is what is meant by ethics.

How a competent teacher can act ethically:Maintain a consistently professional and suitable demeanor.Make sure they have the necessary training, knowledge, and qualifications to teach their art.Observe the rights, attributes, and skills of every pupil.Teach approaches that are reliable and secure to use.understand their own and their students' limitsKeep all students away from needless physical contactBe sincere and fair whenever you interact with students.Verify that all services promoted and paid for are provided.Adopt ethical, just, and transparent business conductMaintain consistency with each pupil.

Three requirements for safety in martial arts instructionBody Consciousness-Pay attention to how your body is moving.Equipment- Wear appropriate protection gear when sparring.Conditioning- To prepare the body for the pressures of training, you must build stronger muscles and condition them.

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ford motor company announces that next month it will offer $3,000 rebates on new mustangs. as a result of this information, today's demand curve for mustangs

Answers

As a result of the announcement, the demand curve for mustangs will shift to the left.

What will be the effect of the announcement?

The demand curve is a graph that shows the relationship between the price of a good and the quantity demanded of a good. The demand curve slopes downward. This indicates that there is a negative relationship between the price of a good and the quantity demanded of the good.

When Ford announces the rebate, people would prefer to buy their cars next month instead of today  in order to take advantage of the rebate. As a result, the demand curve would shift to the left as a result of the decline in demand for Ford.

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Answer:

i have no clue what all of that is but i would just sick with ether ram 1500, ford mustang GT

Explanation:

the demand for massage therapists declined in the spring of​ 2016, but the starting wages paid to massage therapists was still the same at the end of 2016. this is an example of a

Answers

Supply and demand problem. The demand went down but the supply stayed the same because the wages stayed the same

Which term defines a company that is generally not a leader in its​ industry; is individually​ owned, managed, and​ maintained; and characteristically has fewer than 500​ employees?.

Answers

The term that defines a company that is generally not a leader in its​ industry; is individually​ owned, managed, and​ maintained; and characteristically has fewer than 500​ employees is a small business.

Small businesses are corporations, partnerships, or sole proprietorships that employ fewer people or have smaller yearly revenues than more established businesses or corporations.

According to the federal government, a small business is one that has fewer than 500 employees. In the private sector, around half of employees are employed by organizations that fit the criterion. They are eligible for a variety of government aid programs.

Small businesses often provide services or are retail shops like pharmacies, bakeries, tradespeople, and grocery stores. Small businesses are privately held companies with lower capital, labor, and resource requirements than larger corporations. Small businesses are important because they present opportunities for business owners and create more satisfying jobs that provide more job satisfaction than those in larger, more enduring enterprises. They stimulate local economies by keeping money close to home and supporting nearby communities and neighborhoods.

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luxury motors introduced a new car to its already popular sedan line. the new car sold very well in its first year, so the company was surprised to find that its overall sales volume remained about the same as did its market share. what is the likely reason for this? the company experienced cannibalization from the new car from its existing product line. the company needed to revamp a model rather than create a new model. the company failed to assess customer interest in luxury cars. the company’s new car was disruptive technology to its existing product line. the company didn’t differentiate the new car from its existing product line.

Answers

The likely reason for this is that the company experienced cannibalization from the new car from its existing product line.

Car's cannibalization refers to take out the salvageable parts from something, maybe from a broken machine in order to put something else together or fix it. Thus, to include a part taken from one thing into the repairing, repairing, or making of another object.

However, the new car's cannibalization of the company's existing product line occurred is the likely reason for this. Marketing cannibalization is often done unintentionally when the marketing  campaign for certain new products draw the customers away from an already established product.

Hence, option A is correct.

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in many product categories, 20 percent of the people (heavy users) consume 80 percent of the product. marketers who base their marketing efforts on reaching this 20 percent of heavy users are practicing segmentation.

Answers

In several product categories, 20% of consumers (high users) use 80% of the product. Volume segmentation is a technique used by marketers whose campaigns are based on attracting this 20% of frequent customers.

Volume segmentation refers to the split of a market into segments based on the volume of variable demand for the product by people, groups, or different categories of customers; often, the segments are rated to imply heavy, medium, or light consumption.

The term "segmentation" refers to the division of a market into distinct, actionable, profitable, and portions with room for expansion. To put it another way, due to limitations on time, money, and effort, a Volume segmentation corporation would not be able to target the entire market. It must have a "definable" segment—a large group of customers who can be located and targeted with a fair amount of effort, expense, and time.

With hundreds of products, a proliferation of media, ad fatigue, and general economic issues across the globe markets, Volume segmentation assumes significant importance in today's congested market. A company's ability to successfully segment the market might mean the difference between success and closure.

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The complete question is

In many product categories, 20% of the people consume 80% of the products. Marketers who base their marketing efforts on reaching this 20% are practicing ____ segmentation.

when travelocity consolidates multiple airline, hotel, and car rental options into a single website portal, what type of competitive advantage are they pursing?

Answers

When Travelocity consolidates multiple airline, hotel, and car rental options into a single website portal, they are pursuing the competitive advantage of the selection of products.

In the field of business, such factors or attributes that allow a particular business to function better and provide more, better services to the customers are referred to as the competitive advantage. The provision of multiple products under the same place or website is a competitive advantage for a business.

The provision of multiple airline services, multiple hotel services, and car rental services provides the competitive advantage of the selection of multiple products to the customers who use Travelocity. In this way, Travelocity has a competitive advantage over other businesses as it provides multiple product options.

Although a part of your question is missing, you might be referring to this question:

when Travelocity consolidates multiple airlines, hotel, and car rental options into a single website portal, what type of competitive advantage are they pursuing?

A. Delivery

B. Pick up

C. Selection of products

D. Strategic Vision

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Felicia believes strongly in buying from minority-owned businesses whenever possible. Which term best describes the motivation for her purchasing behavior?.

Answers

The terminology which best describes the motivation for Felicia's purchasing behavior is: customer loyalty.

What is a buying process?

A buying process can be defined as the sequence of steps that a consumer (customer) would take while making a purchasing decision, usually over the Internet such as the following:

Problem recognition.General need description.Product specification.Supplier search.Proposal solicitation.Supplier selection.Order-routine specification.Performance review.

What is customer loyalty?

Customer loyalty is also referred to as brand loyalty and it can be defined as a consumer's feeling of commitment to a particular business and its product, marketer, brand name, which typically results in a continuous repeat of purchases or visits in the future.

In conclusion, customer loyalty is a terminology which best describes Felicia's strong belief to buy from minority-owned businesses whenever possible.

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a department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. for the month of january, there were no units in the beginning work in process inventory; 89,300 units were started into production in january; and there were 19,400 units that were 45% complete in the ending work in process inventory at the end of january. what were the equivalent units of production for conversion costs for the month of january?

Answers

If there were no units in the beginning work in process inventory; 89,300 units were started into production in january; The equivalent units of production for conversion costs for the month of january is:  78630.

Equivalent units

Using this formula to determine the equivalent units for conversion costs

Equivalent units = [(Ending WIP units x percentage  complete) + ((Units started into production - Ending WIP units) x percentage complete)

Let plug in the formula

Equivalent units = (19,400 units x 45%) + ((89300 - 19400) x 100%)

Equivalent units = 8,730 + 69,900

Equivalent units = 78,630

Therefore we can conclude that  the company equivalent units is 78,630 units.

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How has creating an Income and Expense Statement helped Evan manage his money?​

Answers

Evan was able to match up his revenue and cash inflow to his expenses and cash outflow by creating an income and expense statement. However, not all cash inflows and outflows are related to income or expenses.

Define revenue.

Revenue is the money made from regular business operations and is calculated by multiplying the average sales price by the quantity of units sold. In order to calculate net income, costs must be deducted from the top line (or gross income) figure. On the income statement, revenue is also known as sales.

Even without income, receipts are conceivable. For instance, this activity results in a receipt but no revenue if the consumer paid in advance for a service or undelivered products.

Because it appears first on an income statement for a corporation, revenue is referred to as the top line. Revenues less expenses equals net income, sometimes referred to as the bottom line. When sales are more than costs, there is a profit.

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cost management, one of the ten pmbok guide knowledge areas, includes the processes involved in planning, estimating, budgeting, financing, funding, managing and controlling costs so that the project can be completed within the approved budget.

Answers

Project Cost Management, one of the ten PMBOK guide knowledge areas, includes the processes so that the project can be completed within the approved budget. The Statement is True.

The fourth of the PMBOK's ten project management knowledge areas is project cost management. It has four processes.  The final one involves managing project finances while a project is being carried out, and it takes place in the Monitoring and Controlling process group.

These three fall within the planning process category because they all include establishing project budgets.

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The question was incomplete. Check below the full question.

Whether the statement is True or False.

Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Dog food manufacturers, such as ralston purina, also have begun offering super-premium foods based on "life-stage nutrition. " the marketing strategy ralston purina is using is called?.

Answers

Dog food manufacturers, such as Ralston Purina, also have begun offering super-premium foods based on "life-stage nutrition." The marketing strategy Ralston Purina is using is called trading up strategy.

Trading up strategy is considered as the practice in order to improve an offering, which is done by adding new features and higher quality materials or adding products or services to increase the purchase price.

So, this strategy tends to add a higher-priced, higher-quality version of a product to the range. This practice is mainly done to increase sales of the lower-priced model through consumer association.

Hence, the strategy of trading up is used by Dog food manufacturers, such as Ralston Purina.

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ack works on the production line at an assembly plant. jack receives a base salary plus $1.25 per unit assembled. this is an example of a cost.

Answers

Jack works on the production line at an assembly plant. jack receives a base salary plus $1.25 per unit assembled. this is an example of a mixed cost.

What is mixed cost?

When you combine a variable cost with a fixed cost (one that stays the same), you get mixed costs, also known as semi-variable costs (vary in proportion to the level of activity). The amount of the mixed cost depends on the various production levels within a corporation.

What is the difference between variable cost and semi-variable cost?

Costs that are directly correlated with the volume of output are referred to as variable costs. Costs that behave like fixed costs up to a certain production threshold before changing to variable costs once the production threshold is exceeded are known as semi-variable costs.

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At the time of retirement a couple has $250,000 in account that pays 8. 4% compounded monthly. If the couple decides to withdraw from the account monthly for 10 years, how much should they withdraw every month if they don’t want any money in the account after those 10 years?.

Answers

The situation can be seen as a payout annuity problem and the couple should withdraw $3,086.29 each month

The formula of payout annuity is given by:

P = PMT. [1 - (1 + r)⁻ⁿ] / r

Where:

P = present value

PMT = payout annuity

r = interest rate per period

n = number of periods

Parameters given:

P = $250,000

The annual interest rate is 8.4%. Since the withdrawal is monthly, we need to divide it by 12.

r=  8.4%/12 = 0,007

The number of periods is:

n = 12 months x 10 years = 120

Plug the parameters into the formula:

250,000 = PMT × [1 - (1 + 0,007)⁻¹²⁰] / 0.007

PMT = 250,000 × 0.007 / 0.567

       = 3086.29

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suppose you need to have $58,477.00 in an account 16.00 years from today and that the account pays 14.00%. how much do you have to deposit into the account 6.00 years from today?

Answers

The amount deposit should be 24365

Total time = 16-6 = 10 years

Rate = 14%

Let the amount be x

58477-x = x*10*14/100

X = 24365

What is deposit?

Money kept in a bank is referred to in the financial lexicon as a deposit. A deposit is a transaction in which money is transferred to a different party for safekeeping. Yet another definition of a deposit is a sum of money used as security or collateral for the delivery of a good.

The money that is deposited into a savings account is an illustration. One such deposit is the gold that has been left in the stream's gravelly bed. Deposit is to put down, entrust, put down, lay down, or set down for storage or payment. A deposit is when someone places money in their bank account.

Because it is not the bank's money, the money placed into your checking account is a credit to them but a debit to you (an rise in your asset). On the bank's books, it is a liability because it is your money and you owe it money. A credit is an addition to the Liability account.

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question 5 imagine that an aerospace company builds a new line of passenger jets. increased raw material costs cause the company to spend more on aluminum than planned. which of the triple constraints does this change impact the most?

Answers

Despite the connection between the three limitations, the budget would be most affected by a price increase.

Describe your budget:

An income- and expense-based spending plan is referred to as a budget. In other words, it's an estimation of the amount of money you'll earn and spend over a specific time frame, like a month or a year.

How come it's called a budget?

A financial or fiscal year, that might or might not coincide with the calendar year, is the time span that budgets in national finance typically cover. The Old French term brunette, which means "small sack," is where the word budget originates.

What does accounting budget mean?

In order to estimate future revenue and expenses, a budget serves as a financial document. A budget, in its simplest form, is a plan that accounts for current expenditures, future savings, and anticipated income.

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ben is planning a ground-breaking ceremony for the company's new headquarters in charlotte, north carolina. he has a limited budget. if he rents air-conditioned tents, he will go over budget. he thinks he could ask one of the business units to cover the expense. if everyone is sweating through their suits while they eat at the reception, the day might be a failure, even if everything else runs smoothly. ben is at which step in rational decision making?

Answers

Ben is at Selecting the best alternative step in the rational decision-making process

Alternatives should offer meaningful options and choices to decision-makers and should reflect significantly diverse perspectives on the issue or priorities across objectives. Selecting the best alternative involves the ability to distinguish between tangible and intangible forces, between tangible and intangible forces, and between facts and assumptions.

The three common methods or instruments for deciding which option is best in a decision-making situation are experience, experimentation, and study and analysis. The difference between a successful manager and an unsuccessful one is their capacity to choose the optimal course of action from a variety of potential possibilities.

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consider a $2,500 deposit earning 7 percent interest per year for six years. what is the future value? (do not round intermediate calculations. round your answer to 2 decimal places.) how much total interest is earned on the original deposit? (do not round intermediate calculations. round your answer to 2 decimal places.) how much is interest earned on interest? (do not round intermediate calculations. round your answer to 2 decimal places.)

Answers

The future value is calculated to be $3751.83. The total interest earned on the original deposit of $2500 is equal to $1251.83 and the interest earned on the interest is equal to $201.83.

The following formula is used in order to determine the future value;

FV = PV (1 + r)^n

Here FV represents the future value, PV represents the present value, r represents the annual interest rate and n represents the number of periods interest held which is six years.

Substituting the values in the formula;

FV = 2500 (1 + 0.07)^6

FV = 2500 (1.07)^6

FV = $3751.83

The total interest earned can be calculated by subtraction of the present value from the future value;

Total interest earned = 3751.83 - 2500 = $1251.83

Now to calculate the interest earned on the interest, we first determine the interest earned on the original investment as follows;

2500 × 0.07 = $175 per year for 6 years = $1050

Now the interest earned on the interest can be calculated by subtracting this value from the total interest earned. Therefore;

interest earned on the interest = 1251.83 - 1050 = $201.83

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beauty inc. issued a 20-year bond ten years ago, with the coupon rate of 7%, paid semi-annually. if the current price of the bond is $1,125, what is the ytm of this bond? group of answer choices

Answers

The Yield to maturity (YTM) of this bond is 4.75%

Given,

The price of this bond is= $1,125

Bond = $2,000  

The coupon rate = 7%

Semi annual Coupon = $31,00

Principal Present Value  =  F /  (1 + r)^t

Coupon Present Value   =  C x [1 - 1/(1 +r)^t] / r

Semiannual Yield to maturity (YTM) rate = 4.75%

Years = 8

Periods = 16

So, a bond's yield to maturity (YTM) is the internal rate of return which is required for the present value of all the future cash flows of the bond to equal the current bond price.

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