Labor power is a special commodity right or wrong?

Answers

Answer 1
Right my mom taught me not to be afraid
Answer 2

Answer:

Right.

Explanation:

The labor market is as much a commodity as the materials are to be processed.

Labor power is a unique commodity in that it is a characteristic of living people who own it in their own bodies. They cannot permanently sell it to someone else because they own it within themselves; otherwise, they would be a slave, and a slave does not own himself.


Related Questions

The typical goal used when developing a process-oriented layout strategy is to: minimize the distance between adjacent departments. minimize the material handling costs. maximize the number of different tasks that can be performed by an individual machine. minimize the level of operator skill necessary. maximize job specialization.

Answers

Answer:

minimize the material handling costs.

Explanation:

A process-oriented layout is a strategic method or technique used by manufacturing companies to organize and develop their work areas (factories) based on the processes and activities being performed at each factory rather than on the product being manufactured.

Hence, the typical goal used when developing a process-oriented layout strategy is to minimize the material handling costs for each factory.

Process costing can be defined as a cost accounting method used for assigning manufacturing or production costs to the units of goods produced by a business firm over a specific period of time. It is mostly used by firms that produce a large quantity of homogeneous or similar products on a continuous basis. Process costing typically uses more than one Work in Process Inventory account because costing at each stage of production or manufacturing process.

Victoria received $500 from customers in partial payment for accounting services performed
previously. The recording of this transaction would
A) increase Cash and increase Accounts Receivable $500.
B) decrease Accounts Receivable and increase Victoria's Capital $500.
C) increase Cash and decrease Accounts Receivable $500.
D) increase Cash and Victoria's Capital $500

Answers

Answer:

C) increase Cash and decrease Accounts Receivable $500

Victoria received $500 from customers in partial payment for accounting services performed previously, then he increases Cash and decrease Accounts Receivable $500.

What is Accounts Receivable?

Accounts receivable, is often known as AR or A/R, are legally enforceable claims for payment held by a company for products or services provided but not paid for by consumers.

The amount of account receivables increases as the payment is due from some debtors, and it decreases as the payment is received from the debtors.

In the given case, Victoria received $500 from customers in partial payment for accounting services performed previously, then the amount of cash in hand increases and the account receivables decreases as the amount is received from the past debtors.

Therefore, option C is correct.

Learn more about the accounts receivable refer to:

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Types of Financial Assets Match the description of the security to the type of financial asset. A security that provides a payoff that depends on the values of other assets. Multiple Choice equity security debt security derivative security None of these

Answers

Answer: Derivative security

Explanation:

Derivative security is referred to as the security that provides a payoff which depends on the values of other assets.

A derivative security is referred to as the financial instrument whereby the value depends on the value of another asset. There are different types of derivatives such as options, swaps, futures, and forwards. Example of derivative security is convertible bond.

3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.

Answers

Answer:

The amount of the impairment loss to be recorded is $6,800.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

On January 1, 2020, Starn Tool & Manufacturing Company purchased a copyright for $31,000 cash. It is estimated that the copyrighted item will have no value by the end of 10 years.

Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,100. The fair value of the copyright was determined to be $21,100. Compute the amount, if any, of the impairment loss to be recorded.

The explanation of the answer is now provided as follows:

Amortization expenses for 2020 = Annual amortization expense = Copyright cost / Estimated useful life of the copyright = $31,000 / 10 = $3,100

Book value of copyright on January 2, 2022 = Copyright cost - Amortization expenses for 2020 = $31,000 - $3,100 = $27,900

Copyright fair value = $21,100

Impairment loss = Book value of copyright on January 2, 2022 - Copyright fair value = $27,900 - $21,100 = $6,800

Therefore, the amount of the impairment loss to be recorded is $6,800.

Ace Industries manufactures high quality auto parts. Recently Ace found that auto repair shop owners were talking customers into buying lower quality goods. Ace invited the shop owners to a meeting in Florida and showed them how to make more money selling high quality auto parts. This is a good example of expert channel power.

Answers

Answer:

True

Explanation:

The capacity of a channel member to influence or affect the judgement and behavior of yet another distribution channel, or one network member's capacity for affect with another distribution channel, is referred to as channel power.

The idea that a business in a political relationship possesses important expertise, knowledge, or abilities in a relevant field to its distribution network partner is referred to as expert authority in marketing channel writing.

Thus, from the above we can conclude that the given statement is true.

The dividend yield is: multiple choice annual cash dividends per share divided by market value per share. annual cash dividends per share multiplied by market value per share. market value per share divided by annual cash dividends per share. market value per share multiplied by annual cash dividends per share.

Answers

Answer:

Annual Cash divided by the Price per share

Explanation:

Dividends are paid out by a company's earnings (cash) and is distributed annually to shareholders price per share.

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 200,000 Fixed manufacturing overhead cost $ 2,800,000 Variable manufacturing overhead cost per machine-hour $ 2.00 Required: 1. Compute the plantwide predetermined overhead rate. 2. During the year, Job P90 was started, completed, and sold to the customer for $3,200. The following information was available with respect to this job: Direct materials $ 1,472 Direct labor cost $ 1,056 Machine-hours used 79 Compute the total manufacturing cost assigned to Job P90.

Answers

Answer:

the  total manufacturing cost assigned to Job P90 is $3,792

Explanation:

The computation of the  total manufacturing cost assigned to Job P90 is given below:

But before that the predetermined overhead rate should be calculated

So,

= ($2,800,000 ÷ 200,000) + $2

= $16

Now the total manufacturing cost is

= $1,472 + $1,056 + 79 × $16

= $3,792

hence, the  total manufacturing cost assigned to Job P90 is $3,792

a business receives 5000 for rent and deposits this amount into its bank account. how will this transaction be recorded?​

Answers

Answer:

Dr bank 5,000

Cr rent revenue 5,000

Deposit

Explanation:

It is noteworthy that the rent received is rent revenue not rent expense , going by the fact that the giving account should be credited while the receiving account is debited, the bank account being the receiving account since cash was received from the rent account would be debited while the rent revenue account would be credited as the giving account.

In another way, rent account is a revenue account, an increase in revenue should be credited while the bank account being an asset account an increase in the asset should be debited.

In its income statement for the year ended December 31, 2022, Sheffield Corp. reported the following condensed data.

Operating expenses $725,000
Interest revenue $38,000
Cost of goods sold 1,261,000
Loss on disposal of plant assets 22,000
Interest expense 76,000
Net sales 2,204,000
Income tax expense 50,000
Other comprehensive income (net of $1,200 tax) 8,800

Required:
Prepare a multiple-step income statement.

Answers

Answer:

Sheffield Corp.

Multiple-step income statement for the year ended December 31, 2022

Net sales                                                                            $2,204,000

Less Cost of goods sold                                                   ($1,261,000)

Gross Profit                                                                           $943,000

Less Operating Expenses :

Operating expenses                  $725,000                       ($725,000)

Operating Profit                                                                    $218,000

Less Non Operating Expenses :

Interest revenue                         ($38,000)

Loss on disposal of plant assets $22,000

Interest expense                          $76,000

Income tax expense                    $50,000                        ($110,000)

Net Profit                                                                              $108,000

Other Comprehensive Income

Other comprehensive income (net of $1,200 tax)                $8,800

Total Profit and loss and comprehensive income              $116,800

Explanation:

A multiple-step income statement shows separately profit derived from primary activities and that derived from secondary activities as shown above.

Vaughn Corporation had 303,000 shares of common stock outstanding on January 1, 2017. On May 1, Vaughn issued 31,200 shares.

Required:
a. Compute the weighted-average number of shares outstanding if the 31,200 shares were issued for cash.
b. Compute the weighted-average number of shares outstanding if the 29,700 shares were issued in a stock dividend.

Answers

Answer and Explanation:

The computation of the  weighted-average number of shares outstanding  in each cases is as follows:

a. At the time when the shares are issued at cash

= (303,000 × 12 ÷ 12) + (31,200 × 8 ÷ 12)

= 303,000 + 20,800

= 323,800 shares

b. At the time when the shares are issued in the stock dividend

= (303,000 × 12 ÷ 12) + (29,700 × 12 ÷ 12)

= 303,000 + 29,700

= 332,700 shares

Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance, Accounts Payable, and Utilities Expense were each understated $100. 2. Transposition errors were made in Accounts Receivable and Service Revenue. Based on postings made, the correct balances were $2,570 and $8,960, respectively. 3. A debit posting to Salaries and Wages Expense of $200 was omitted. 4. A $1,600 cash dividend was debited to Common Stock for $1,600 and credited to Cash for $1,600. 5. A $450 purchase of supplies on account was debited to Equipment for $450 and credited to Cash for $450. 6. A cash payment of $530 for advertising was debited to Advertising Expense for $53 and credited to Cash for $53. 7. A collection from a customer for $540 was debited to Cash for $540 and credited to Accounts Payable for $540. Prepare a correct trial balance. (Hint: It helps to prepare the correct journal entry for the transaction described and compare it to the mistake made.)

Answers

Answer:

Debit side $29,660

Credit side $29,660

Explanation:

Preparation of a correct trial balance

DOMINIC COMPANY

Corrected Trial Balance May 31, 2015

DEBIT SIDE

Cash $5,023

($5,050 +$450 - $477)

($530-$53=$477)

Accounts Receivable $2,030

($2,570 - $540)

Prepaid Insurance $930

($830 + $100)

Supplies $450

Equipment $12,750

($13,200 - $450)

Salaries and Wages Expense $4,530

($4,330 + $200)

Advertising Expense $1,447

($970 + $477)

($530-$53=$477)

Utilities Expense $900

($800 + $100)

Dividends $1,600

TOTAL $29,660

CREDIT SIDE

Accounts Payable $5,510

($5,700 - $100 + $450 - $540)

Unearned Service Revenue $690

Common Stock $14,500

($12,900 + $1,600)

Service Revenue $8,960

TOTAL $29,660

Therefore the CORRECTED TRIAL BALANCE will be:

Debit side $29,660

Credit side $29,660

Wine and Roses, Inc. offers a 5.5 percent coupon bond with semiannual payments and a yield to maturity of 6.32 percent. The bonds mature in 11 years. What is the market price of a $1,000 face value bond?a. $1,008.79b. $1,431.32c. $1,504.37d. $935.69e. $1,367.02

Answers

Answer:

d. $935.69

Explanation:

The computation of the market price of the bond is shown below:

Given that

Future value be $1,000

RATE = 6.32% ÷ 2 = 3.16%

NPER = 11 × 2 = 22

PMT = $1,000 × 5.5% ÷ 2 = $27.50

The formula is shown below:

=-PV(RATE,NPER,PMT,FV,TYPE)

After applying the above formula, the market price of the bond is $935.69

Jolene Kendrick borrowed $24,000 for new computers for her software production company. Her bank granted her a single-payment loan of $24,000 for 144 days. Determine the maturity value to the nearest cent of the loan if the rate is 9% exact interest. Do not use comma in your answer.

Answers

Answer:

248521.6

Explanation:

Given:

Amount borrowed, P = 240,000

Interest rate, R = 9% = 0.09

period, n = 144 days

The maturity value :

Since it is an exact interest, number of days, T in a years is 365

Using the formula :

A =

P(1 + RT)

A = 240000(1 + 0.09*(144/365))

A = 240000(1 + 0.0355068)

A = 240000(1.0355068)

A = 248521.64

A = 248521.6

Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 100,000 $ 200,000 $ 200,000 Variable costs 40,000 140,000 80,000 Fixed costs total $200,000. What is Eastwick's break-even sales volume

Answers

Answer:

$416,667

Explanation:

Calculation to determine Eastwick's break-even sales volume

First step is to calculate the Contribution margin (CM)

CM = ($100,000 – $40,000) + ($200,000 – $140,000) + ($200,000 – $80,000)

CM=$60,000+$60,000+$120,000

CM = $240,000

Second step is to calculate CM%

CM% = $240,000/$500,000

CM% = 48%

Now let calculate the Break-even sales volume

Break-even sales volume = $200,000/.48

Break-even sales volume = $416,667

Therefore Break-even sales volume is $416,667

Data have been collected from College of Business graduates on their monthly starting salaries. The graduates include students majoring in management, finance, accounting, information systems, and marketing. Create a PivotTable in Excel to display the number of graduates in each major and the average monthly starting salary for students in each major.


Major Monthy Salary
Management 3330
Management 2700
Finance 3155
Accounting 3855
Info Systems 4220
Accounting 3110
Accounting 3880

a. Which major has the greatest number of graduates?
b. Which major has the highest average starting monthly salary?
c. Use the PivotTable to determine the major of the student with the highest overall starting monthly salary. What is the major of the student with the lowest overall starting monthly salary?

Answers

Answer:

Data from College of Business Graduates

a. The major that has the greatest number of graduates is Accounting.

b. The major that has the highest average starting monthly salary is Info Systems

c. The major with the lowest overall starting monthly salary is Management.

Explanation:

a) Data and Calculations:

Major                  Monthly Salary

Management         3330

Management        2700

Finance                  3155  

Info Systems        4220

Accounting          3855

Accounting           3110

Accounting         3880

Consider your current uses of tap water. Think about some of the ways that you use water that are beyond what is necessary to sustain life.
a. If the price of tap water triples, what are some likely changes that you will make to your consumption of tap water?
A. decrease the length of your showers
B. turn water off while brushing your teeth
C. leave water running while brushing your teeth
D. increase the length of your showers
b. In general, the consumption of tap water _______obey the law of demand.

Answers

Answer:

a). A. decrease the length of your showers

    B. turn water off while brushing your teeth

b). does

Explanation:

When the cost of the tap water increases and it gets triple, following some of the practices can help reduce the cost of the tape water used and it will also reduce the consumption of water. Some of the changes that I can include are:

-- I can lower the length of the shower so that less amount of water is used and more water is saved.

-- It is a good habit to turn off the water while we are brushing and only turn on the tape or open the tape whenever it is necessary. In this way we can prevent wasting water and reduce our water consumption.

Thus we can say that the consumption of the tape water does obey the law of demand.

If the price of tap water triples, we would most likely:

A. decrease the length of your showersB. turn water off while brushing your teeth

This means that consumption of tap water does obey the law of demand.

Law of Demand Governs demand in relation to price. Posits that when prices rise for normal goods, their demand drops. The reverse is true.

By turning off water when brushing or using less water to shower, we are demanding less water as a result of an increase in price. Water therefore abides by the Law of Demand.

Find out more on the law of demand at https://brainly.com/question/4803223.

Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $402,000 and each with an eight-year life and expected total net cash flows of $536,000. Location 1 is expected to provide equal annual net cash flows of $67,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $145,000 Year 2 105,000 Year 3 68,000 Year 4 52,000 Year 5 32,000 Year 6 64,000 Year 7 44,000 Year 8 26,000 Determine the cash payback period for both location proposals. Location 1 years Location 2 years

Answers

Answer and Explanation:

The computation of the payback period for both the locations is shown below;

For location 1

= $402,000 ÷ $67,000

= 6 years

And, for location 2

Year       Cash flows    Cumulative cash flows

1         $145,000              $145,000

2        $105,000              $250,000

3          $68,000             $318,000

4          $52,000              $370,000

5          $32,000             $402,000

So, the payback period for location 2 is 5 years

Supply chain links are managed rather than the entire chain; therefore, a company can manage all the links in its chain.

a. Trueb. False

Answers

Answer:

True

Explanation:

Problems and Applications Q11 You are the curator of a museum. The museum is running short of funds, so you decide to increase revenue. When should you raise the admission price in order to increase revenue

Answers

Answer: Only when demand is inelastic

Explanation:

For a product that has an inelastic demand, the demand of a buyer with regards to a product has minimal changes when when there is a change in price. In such case, an increase in the price will lead to an increase in revenue.

On the other hand, for a product that has an elastic demand, there will be a greater change in the demand of the buyer when when there is a change in price. In such case, an inrease in the price will lead to an reduction in revenue as buyers will go for other products.

Therefore, the admission price should be increased when demand is inelastic in order to increase revenue.

Sam and Sally Green have a standard homeowners policy with no endorsements. The dwelling is insured for its full value. Indicate whether or not each of the following losses is covered and under what coverage. Specify why each loss is covered or not covered.

a. The Green's valuable dog is stolen from their back yard.
b. Sally takes off her wedding ring in a public restroom to wash her hands. She accidentally leaves the ring behind.
c. While the Green's are vacationing in Europe, their hotel room is robbed. The thief gets away with jewels and cash.
d. While practicing his chip shot in the yard, Sam accidentally sends a golf ball crashing through the dining room window.

Answers

Answer:

a. Not covered

b. Not covered

c. Covered

d. Covered

Explanation:

Sam and Sally have standard homeowner policy. There are no endorsements to the policy. The standard policy will cover the house damage due to accident or some other reasons unintentionally. When dog is stolen this is not covered in the policy as there is no endorsement for the dog security insurance in the policy. Sally has left her ring due to her carelessness and thus this is also not covered in the policy. When Sam accidentally breaks dining room window this will be covered in the basic policy.

Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to

Answers

Answer:

C. decrease

Explanation:

In the case when the money demand and the money supply model is used so the open market purchase would result the interest rate of equilibrium to decrease as if there is an open market purchase so it rise the money supply due to which the supply curve of the money move shiftward

Therefore the rate of interest should be decreased

Required information Skip to question [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Pretax income $ 108,000 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

Fixed costs= $324,000

Unitary variable cost= $180

Selling price= $225

To calculate the break-even point in units and dollars, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 324,000 / (225 - 180)

Break-even point in units= 7,200

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 324,000 / (45/225)

Break-even point (dollars)= $1,620,000

Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is 14.3 percent. The company can borrow at 9.1 percent and the corporate tax rate is 25 percent. a. What is the current value of the company

Answers

Answer:

Missing "b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value?  b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"

a. Current value of the company = EBIT*(1-t) / Ke

Current value of the company = $23,300*(1-0.25) / 0.143

Current value of the company = $23,300*0.75 / 0.143

Current value of the company = $17,475 / 0.143

Current value of the company = $122202.7972027972

Current value of the company = $122,202.80

So, the current value of the company is $122,202.80.

bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)

Value of the company = $122,202.80 + $15,275.35

Value of the company = $137,478.15

bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)

Value of the company = $122,202.80 + $30,550.7

Value of the company = $152,753.5

Suppose that 45% of all babies born in a particular hospital are girls. If 7 babies born in the hospital are randomly selected, what is the probability that at most of them are girls?

Answers

Answer:

0.10

Explanation:

Using the binomial probability formula: P(X = x) = (nCx) * p^x * (1 - p)^(n-x)

P(X≤1) = P(X = 0) + P(X = 1)

P(X≤1) = (7C0) * 0.45^0 * (0.55)^7 + (7C1) * 0.45^1 * (0.55)^6

P(X≤1) = 0.1024

P(X≤1) = 0.10

So, the Probability that at most one of them are girls 0.10.

The five new production assistants at Hollywood Studios will attend an orientation meeting on their first day. During orientation, they will learn what is expected of them and how they fit into the ___ culture.

Answers

Answer: Corporate

Explanation:

Corporate culture simply refers to the standards, shared values, attitudes, and beliefs by which the members of an organization are characterized.

The corporate culture is important in guiding how the employees of an organization think and act as it symbolizes the personality of the company shows its core beliefs. New employees are expected to know the corporate culture of an organization.

In the market for reserves, a decline in the reserve requirement ________ the ________ curve of reserves and causes the federal funds interest rate to fall, everything else held constant.

Answers

Answer:

Shortens,

vertical section of the supply

Explanation:

In the market for reserves a decline in the reserve requirement shortens the vertical section of the supply curve of reserves and this will also cause the federal funds interest rate to fall,

Given that every other thing is kept constant

The federal funds interest is an interest rate charged by banks when lending or borrowing excess reserves from each other overnight

Explanation:

Shortens, Vertical Section Of The Supply

A firm that purchases electricity from the local utility for $300,000 per year is considering installing a steam generator at a cost of $260,000. The cost of operating this generator would be $210,000 per year, and the generator will last for five years. If the firm buys the generator, it does not need to purchase any electricity from the local utility. The cost of capital is 11%. For the local utility option, consider five years of electricity purchases. For the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year (i.e., immediate, one year from now,..., four years from now). What is the net present value of the more attractive choice?

Answers

Answer:

The net present value of the more attractive choice is:

= $1,108,800 (paying for local utility)

Explanation:

a) Data and Calculations:

Project period = 5 years

Cost of capital = 11%

                                             Local Utility   Steam Generator

Operating cost per year        $300,000           $210,000

Cost of steam generator                                  $260,000

PV (annuity factor

at 11% for 5 years)                      3.696

PV (annuity factor

at 11% for 4 years)                                                 3.102

Present value                       $1,108,800 ($300,000 * 3.696)

Present value of steam generator/

operating cost for the 1st year                        $470,000

Present value of operating cost for 4 years      651,420 ($210,000 * 3.102)

Net present value               $1,108,800           $1,121,420

Paying for the local utility is more attractive with a net present value savings of $12,620 ($1,121,420 - $1,108,800)

who has given general principle of management?​

Answers

Answer:

I think it's " Henri Fayol's "

Answer:

14 management principle of Henri Fayol

Explanation:

1.  Division of work or division labor.

2. Balancing Authority and responsibility.

3. Discipline.

4. Unity of command.

5. Unity of Direction.

6. Subordination of individual interest to the general interest.

7. Remuneration.

8. Centralization.

9. Scalar chain.

10. Order.

11. Equity.

12. Stability of tenure of personal.

13. Initiative.

14. Esprit de corps.

How would you explain to a skeptical bank manager why the socially optimal number of bank robberies is not zero

Answers

Answer:

The socially optimal number of bank robberies is not equal zero because due to the presence or the possibility of robberies in Banks, some industries will be sustained and such industries are ; Security agencies and their personnel , Insurance companies, Vault designing and manufacturing firms.

Explanation:

A socially optimal quantity of a good or service is the quantity of a good or service that is beneficial to the society ( i.e. to other industries related directly or indirectly to the good or service )

The socially optimal number of bank robberies is not equal zero because due to the presence or the possibility of robberies in Banks, some industries will be sustained and such industries are ; Security agencies and their personnel , Insurance companies, Vault designing and manufacturing firms.

Hence if the socially optimal number of bank robberies equals zero the aforementioned industries will be out of business

SWH Corporation issued bonds on January 1, 2004. The bonds had a coupon rate of 5.5%, with interest paid semiannually. The face value of the bonds is $1,000 and the bonds mature on January 1, 2019. What is the yield to maturity for an SWH Corporation bond on January 1, 2010 if the market price of the bond on that date is $950

Answers

Answer:

6.23%

Explanation:

From Jan 2019 to Jan 2010 = 9 years

N = 9 years*2 = 18

PV = $950

Coupon payment = $27.5 (1000*5.5%/2)

FV = $1000

We need to solve for YTM using the MsExcel function

Yield to maturity = YTM(n, pv, pmt, fv) * 2

Yield to maturity = YTM(18, 950, 27.5, 1000) * 2

Yield to maturity = 0.03117 * 2

Yield to maturity = 0.06234

Yield to maturity = 6.23%

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