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Hogar Banco de preguntas Ciencias económicas Archive 2025 February 23

Economics Questions from Feb 23,2025

Browse the Economics Q&A Archive for Feb 23,2025, featuring a collection of homework questions and answers from this day. Find detailed solutions to enhance your understanding.

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Question 2 The carrying value (book value) of a machinery of an entity at the end of the \( 3^{\text {rd }} \) year of usage is be GHS180,000. If the machinery is depreciated at \( 20 \% \) per annum on the straight line basis, the cost of this machinery is GHS... \( \begin{array}{llll}\text { (A) } 450,000 & \text { (B) } 72,000 & \text { (C) } 300,000 & \text { (D) } 270,000\end{array} \) Suppose your company needs to raise \( \$ 41.2 \) million and you want to issue 30 -year bonds for this purpose. Assume the required return on your bond issue will be 6.2 percent, and you're evaluating two issue alternatives: a semiannual coupon bond with a coupon rate of 6.2 percent and a zero coupon bond. The tax rate is 22 percent. Both bonds will have a par value of \( \$ 1,000 \). a. How many of the coupon bonds would you need to issue to raise the \( \$ 41.2 \) million? How many of the zeroes would you need to issue? Note: Do not round intermediate calculations. Round your coupon bond answer to the nearest whole number, e.g., 32 and your zero coupon bond answer to 2 decimals, e.g., \( \mathbf{3 2 . 1 6} \). b. In 30 years, what will your company's repayment be if you issue the coupon bonds? What if you issue the zeroes? Note: Do not round intermediate calculations and enter your answers in dollars, not millions, rounded to the nearest whole number, e.g., \( 1,234,567 \). c. Assume that the IRS amortization rules apply for the zero coupon bonds. Calculate the firm's aftertax cash outflows for the first year under the two different scenarios. Note: Intut a cash outfow as negative value and a cash inflow as a positive value. Do not round intermediate calculations and enter your answers in dollars, not millions, rounded to 2 decimal places, e.g., \( \mathbf{1 , 2 3 4 , 5 6 7 . 8 9 \text { . }} \) Yan Yan Corporation has a \( \$ 2,000 \) par value bond outstanding with a coupon rate of 4.4 percent paid semiannually and 18 years maturity. The yield to maturity on this bond is 4.7 percent. What is the dollar price of the bond? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Genova Corporation has a four year \( 10 \% \) annual coupon bond. The price of the bond is \( \$ 956.12 \). The Yield to Maturity is \( 11.43 \% \). What is the current yield on this bond? Warren Corporation is interested in a three-year, \( 11 \% \) annual coupon bond. A broker quotes a price of \( \$ 930.35 \). What is the yield to Maturity? Lochmere Corporation is evaluating a taxable bond at \( 7 \% \) and a municipal bond at \( 5.75 \% \). What is the break-even tax rate? Multiple Choice Franklin Corporation has an opportunity to purchase bonds at a rate of \( 11 \% \). They are in the \( 34 \% \) tax bracket. What is the after tax yield on these bonds? Municipal bonds are taxable for federal, state and local taxes. True or False QUESTION 8 How many days do you have to resolve your delinquency before your loan officially defaults? (The Basics of Loan Repayment PDF) a. 200 days b. 30 days 360 days QUESTION 100 days During forbearance, interest will still accrue on your loans. (The Basics of Loan Repayment PDF) True False QUESTION 10 When comparing a 10-year bond versus a 1 -year bond, the 10 -year bond has a much greater interest rate risk. erences True or False
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