Consider a zero-coupon bond with $100 face value and 15 years to maturity. If the YTM is 7%, this bond will trade at a price of ________. A Company has a bond outstanding with a face value of $10000 that reaches maturity in 10 years. The bond certifi..
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Sami, 34, and Ronald, 31, want to buy their first home. Their current combined net income is $65,000 and they have two auto loans totalling $32,000. They have saved approximately $12,00 for the purchase of their home and have total assets worth $55,0..
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Hickock Mining is evaluating when to open a gold mine. The mine has 34,000 ounces of gold left that can be mined, and mining operations will produce 6,800 ounces per year. The required return on the gold mine is 10 percent, and it will cost $34.8 mil..
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A good friend comes to you and says they have just learned that something called a credit rating on corporate bonds they own has just been lowered to a D rating. They are not sure what that means, but it does not sound good. Explain the credit rating..
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You can find this information in the following sources: "Wall Street Journal," "New York Times," Yahoo Finance, Bloomberg, and company web sites. The company web site will often provide you with the latest fiscal reports in the "investor relations" s..
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Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 10,400 $ 11,400 Accounts receivable 5,400 5,700 Accounts payable 7,600 8,000 Credit sales $ 84,000 Cost of goods sold 64,000 Calculate..
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Suppose you have a semi-annual coupon paying bond that has 10 years of maturity left, has a par value of $65,100, has a coupon rate of 7.23%, and has just paid its most recent coupon payment 10 days ago. What is this bond's annual yield based on a Ti..
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Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one year and investors typically roll over the matured Treasury bill and purchase another Treasury bill the same day. Treasury ..
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You must evaluate a proposal to buy a new milling machine. The base price is $183,000, and shipping and installation costs would add another $17,000. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $128,100. What..
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Jane Davis went to the hospital for a total hip implant. Her insurance has a contract with the hospital to pay them on a Per Diem basis. The per diem rate is $1,500 per day. If Jane stayed in the hospital 5 days, what would the payment be and what wo..
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You are considering a new product launch. The project will cost $1,800,000, have a four-year life, and have no salvage value; depreciation is straight-line to zero. Accounting break-even-What is the degree of operating leverage at the accounting brea..
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Fijisawa, Inc., is considering a major expansion of its product line and has estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $2,010,000, and the project would genera..
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