The formula of which of the following considers the percentage change in price? a. Total expected yield b. Yield to date c. Present value yield d. Yield to maturity

Q: An IOU agreement was made between two persons. For a face value of P100,000, it was agreed that the ...

A: A bond is an instrument that obligates the issuer to pay the buyer pre-determined interest. The bond...

Q: A remotely situated fuel cell has an installed cost of BD2,000 and will reduce the existing expen: B...

A: Salvage value is the book value of an asset (like an equipment or a machinery) after all depreciatio...

Q: Sara met with a financial planner and has determined that she will need $1,250,000 when she retires ...

A: Retirement amount needed (FV) = $1,250,000 n = 30 years = 360 months r = 5.65% per annum = 0.47083% ...

Q: /C ratio (modified) of a building that houses students during their classroom discussion. The accomm...

A: B/C is the ratio of  present value of annual benefits to present value of all cost. If it is more th...

Q: Halliford Corporation expects to have earnings this coming year of $3.325 per share. Halliford plans...

A: The Dividend Growth Model: The dividend growth model recognizes that dividends are the cash flows to...

Q: g. National Co. estimates that its capital budget for the upcoming year will be P800,000,000, and it...

A: The capital structure of the company consist of debt and equity. Some part is financed by debt and s...

Q: The new current ratio is O: (Round to one decimal place.)

A: The current ratio shows the paying capacity to meet short-term liabilities with the available amount...

Q: Njenge Bank has the following balance sheet (in millions) with the risk weights in parentheses.    ...

A: Basel Accords: The Basel Accords are a sequence of three chronological banking guideline agreements ...

Q: Dennis wants to buy a $370,000 house with a 20% down payment. He is looking at a 20-year mortgage at...

A: Net mortgage = Value of house * (1-% of downpayment) = 370000 * (1-.20) = 370000 * .80 =296000

Q: You are asked to evaluate the following project for a corporation with profitable ongoing operations...

A: Net present value is the value of cash inflows earned from a project after deducting the value of th...

Q: A five year P1,000 par value bond pays a 5% annual coupon. Given a YTM of 7%, what is the price of t...

A: The price of bond will be the present value of all coupon payment and present value of face value. B...

Q: NoGrowth Corporation currently pays a dividend of $1.72 per​ year, and it will continue to pay this ...

A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend. Whene...

Q: 10. Ruel Dayrit deposited P80,250 in a bank paying 5% simple interest for 4 years. How would he have...

A: Simple Interest: Interest on loan/investment is calculated using simple interest method and is  calc...

Q: ) skimming P) pretexting c) phishing d) fraud

A: There are many methods of doing crimes related to the money and finance and these are increasing day...

Q: 2. Based on the balance sheet, Are the earnings per share increasing or decreasing? Explain

A: The amount distributed to the shareholders from earnings available to shareholders is known as the d...

Q: mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. E...

A: The present worth of fund is the equivalent value of fund today considering time and interest rate t...

Q: You are an investor who is interested in purchasing AC shares which is currently trading at a price ...

A: We can use the dividend discount model here. The first step will be to find the fair value or the in...

Q: Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each year ...

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve ...

Q: There are 2 forms of personal bankruptcy. Describe what happens in each.

A: The term "bankruptcy" refers to a legal situation. A bankruptcy judgment indicates that a court has ...

Q: Company has the following historical pattern on its credit sales: 70% collected in the month of sale...

A: Cash budget is a forecast of a company's cash flows over a predetermined amount of time which might ...

Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Monthly deposi...

A: Monthly deposit = $220 Period = 9  Years Interest rate = 7% Number of periods per year = 12

Q: James Kinchen has a 1-year ARM for $100,000 over a 30-year term. The margin is 2% and the index rate...

A: Compounding of interest means, interest is received on principal as well as the earned interest amou...

Q: What single payment 6 months from now would be economically equivalent to payments of $1500 due (but...

A: The time value of money concept states that if the same amount of money is compared, the amount we h...

Q: Bulldogs Inc. has Dog bonds outstanding with P1,500 face value and 8 years is remaining before its m...

A: Callable bonds are those bonds which can be bought back by the issuer at a predetermined date before...

Q: Bulldogs Inc. wants to establish a bond portfolio consisting only of BDO bonds which has a maturity ...

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...

Q: 8. A store manager obtained a loan of $45,000, at  6 3 8%  interest, for 14 months to purchase supp...

A: The simple interest is simply calculated as product of principal rate and time

Q: National Co. recently completed a 3-for-1 stock split.  Prior to the split, the company had 10 milli...

A: A 3 for 1 stock split means that every share is converted into 3 shares. This increases the number o...

Q: What is the company’s after-tax weighted average cost of capital if Bulldogs Inc. pays taxes at the ...

A: Tax rate = 30% Particulars Weight Cost Long-term liabilities 40% 10% Preferred stock 30% 10% ...

Q: Consider a portfolio with a market value of $50 million and a modified duration of 7 years. Its mana...

A:   Modified duration is the change in duration of re-coverability of investment due to change in yiel...

Q: XYZ Inc. had the following figures in its Income Statement: (please show solution)   Sales Php 920...

A: Cash inflow consists of sales and other income, whereas cash outflow consists of COGS, salaries, adv...

Q: A bond with 5 years to maturity and a coupon rate of 6% and face value of $20,000. If the required r...

A: The market price of the bond is calculated as present value of cash flows of bond

Q: Dick Eckel recently set up a TDA to save for his retirement. He arranged to have $135 taken out of e...

A: Future value is compounding all intermediate cashflows to future point of time. It helps to ascertai...

Q: We have all heard of Return on Investment or (ROI). Please research and describe five other business...

A: To determine the success of a business plan and of the business that has been operational because of...

Q: The potential loss because of damage to the insured equipment is a function of the value of the equi...

A: Potential Loss means the loss suffered due to damages that are accidental in nature like earthquake,...

Q: How much must Melissa deposit at the beginning of every three months for 5 years into an account at ...

A: A quarterly deposit to accumulate a certain amount:  how much series of regular quarterly funds depo...

Q: Find the C.I of the following when P= $10,000, r =6% and n = 10 years

A: Note: This post has two distinct questions. The first has been answered below.

Q: Everything else equal, the annual compounding will always give the highest future value whether lump...

A: Effective interest rate is the interest rate after considering the effect of compounding and more is...

Q: What is the (annualized) mean return for each stock and the market i. Arithmetic ii. geometric

A: Given: Date YUM ZTS AAPL Market 31/01/18 84.59 76.73 87.3 1251.42 28/02/18 81.38 80.86 75.74 ...

Q: Your company wants to raise $7.0 million by issuing 20-year zero-coupon bonds. If the yield to matur...

A: Value of Zero Coupon Bond = Face Value / (1+YTM)^nyield to maturity (YTM) = 0.06n = 20 years= 1000 /...

Q: gage debt service ratio? O 70.27% O 62.51% O 90.25% O 56.41%

A: Mortgage debt services ratio is quite extensively used in granting the mortgage loans. That show pay...

Q: 2. For the net cash flow series shown, find the external rate of return using the ROIC method at an ...

A: For calculation external rate of return, first we need to discount the outflows at rate of investmen...

Q: If a company has a quick ratio of 1.0 and a current ratio of 2.0, it is more likely that A. the val...

A: Quick ratio = 1 Current ratio = 2 Let CA = Current assets CL = Current liabilities I = Inventory

Q: A firm produces 550 T.V. sets during its first year. The sum total of the imm's production at the en...

A: Given Output for first year is 550 Sum of output at the end of 5 years is 3000.

Q: With interest at 4% compounded quarterly, how much will be required 8 years hence to repay a Php 350...

A: Payment required to be made after 8 years is calculated as future value of loan amount

Q: You are in a managerial position with $50,000 available cash. You have the option of investing the m...

A: Future value of money includes the interest accumulated over the period and deposit made. More is co...

Q: You have an opportunity to invest in a FinTech start up. You will have to make two annual payments -...

A: Expected annual return or IRR indicates the anticipated compound annual rate of return earned on an ...

Q: 11. A debt of P29,000 bears simple interest at 7½% per annum. If it is repaid after 5 years, how muc...

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

Q: Unfavorable 0.2 -18% -17% -19% What is the coefficient of variation of the chosen stock? Use a numbe...

A: Coefficient of variation:                         It is the ratio used by the investors to determi...

Q: Luna Inc. bonds currently sell for P1,500 and the same bond was originally sold at P1,500. This inst...

A: Originally sold price = P1500 Annual coupon payment = P37.50 Current price = P1500

Q: 7. Find the amount of simple interest on a loan of $4,500 at  9 1 2%  interest for 13 years. $427.5...

A: Simple interest can be calculated by using this equation Simple interest =Principal*Rate*Time

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.