Lila Miller, who works for a large software firm, is four months pregnant and due for a promotion. However, her employer offers the promotion to Harry Oswald, a less-experienced candidate, as Lila will go on maternity leave soon and be unable to perform her duties. Which of the following statements is true of this scenario?
A) Lila's employer is liable for quid pro quo sex discrimination.
B) Lila's employer is liable for hostile work environment sex discrimination.
C) Lila's employer was lawful in denying her the promotion.
D) Lila's employer has violated Title VII of the Civil Rights Act of 1964.

Answers

Answer 1

Answer: D) Lila's employer has violated Title VII of the Civil Rights Act of 1964.

Explanation:

Based on the information given in the question, we can infer that Lila's employer has violated Title VII of the Civil Rights Act of 1964.

Title VII of the Civil Rights Act of 1964 simply protects employees against firm of discrimination that are based on sex, color, race, national origin, and religion.

Since Lila is pregnant and due for promotion but the promotion was given to Harry, she has been discriminated upon based on her sex.

Therefore, the correct option is D.


Related Questions

Explain how introducing an agile method will improve the outcomes of software development?

Answers

Answer:

In simple words, Agile architecture, in fact, speeds up the distribution of original market value and ensures that quality is maximized during the implementation system by a process of constant preparation and feedback.

Projects are finished in shorter iterations, rendering them more achievable, thanks to the incremental design of the agile process. It also makes it possible to roll out goods efficiently and make adjustments at any time throughout the phase

Tristen Company purchased a five-story office building on January 1, 2019, at a cost of $5,000,000. The building has a residual value of $200,000 and a 30-year life. The straight-line depreciation method is used. On June 30, 2021, construction of a sixth floor was completed at a cost of $1,650,000.

Required:
Calculate the depreciation on the building and building addition for 2018 and 2019 assuming that the addition did not change the life or residual value of the building.

Answers

Answer:

Depreciation expense on Building

Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life

= ($5,000,000 - $200,000) / 30

= $4,800,000 / 30

= $160,000

Depreciation expense for 2018 = $160,000

Depreciation expense for 2019 = $160,000

Depreciation expense on Building addition

Useful life = 30.00 years - 2.50 years = 27.50 years

Depreciation expense per annum under straight line method = (Cost - Residual value) / Useful life

= ($1,650,000 - $0) / 27.50

= $60,000

Depreciation expense for 2018 for 6 months = $60,000 * (6/12) = $30,000

Depreciation expense for 2019 = $60,000

Foreign Sub, for which the functional currency is the local currency, recognizes a receivable on 11/12/20X1. On December 31, 20X1, Foreign Sub's parent company determines that the exchange rate has changed since the receivable was recognized. In its consolidated financial statements, the parent company should report Foreign Sub's receivable using the exchange rate:_______

a. in effect on 12/31/20X1.
b. that results in the highest reported receivable.
c. in effect on 11/12/20X1.
d. that results in the lowest reported receivable.

Answers

Answer:

c. in effect on 11/12/20X1.

Explanation:

According to IAS 21 the exchange rate used to record financial transactions in consolidated statement is the exchange rate at which the transaction took place. There is allowance to used an average rate if the historic rate is not accurate. The receivable should be recorded at the exchange rate which was in effect on 11/12/20X1.

Jordan performs services for Ryan. Which, if any, of the following factors indicate that Jordan is an independent
contractor, rather than an employee?
a. Ryan sets the work schedule
b. Ryan provides the tools used.
c. Jordan follows a specific set of instructions from Ryan to complete tasks.
d. Jordan is paid based on tasks performed.

Answers

Answer:

d. Jordan is paid based on tasks performed.

Explanation:

In the given options, the option d seems to be an independent contractor instead of an employee as the independent contractor would be paid that depend upon the performance of the task. They are free to choose their time and resources in order to performing the task. In other way, they dont have to depend upon others

So, the option d is correct

Howell Company has the following selected accounts after posting adjusting entries:
Accounts Payable $45,000
Notes Payable, 3 - month 80,000
Accumulated Depreciation - Equipment 14,000
Payroll and Benefits Payable 27,000
Notes Payable, 5-year, 8% 30,000
Estimated Warranty Liability 34,000
Payroll Tax Expense 6,000
Interest Payable 3,000
Mortgage Payable 200,000
Sales Tax Payable 16,000
Instructions:
(a) Prepare the current liability section of Howell Company's balance sheet, assuming $25,000 of the mortgage is payable next year.
(b) Comment on Howell's liquidity, assuming total current assets are $450,000.

Answers

Answer and Explanation:

a. The preparation of the current liability section is presented below;

Notes payable - 3 months $80,000

Accounts payable $45,000

Estimated warranty liabilities $34,000

Payroll and benefit payable $27,000

Current portion of the Mortgage $25,000

Sales Tax payable $16,000

Interest payable $3,000

Total $230,000

b. We know that

Current ratio = current asset ÷ current liabilty

= $450,000 ÷ $230,000

= 1.95 times

This represent the company is in the good liquidity position to pay off the short term liability  

Distributions from corporations to the shareholders in a nonliquidating distribution will usually be classified as a dividend up to the amount of the corporation's retained earnings stock basis taxable income for the year earnings and profits.

a. True
b. False

Answers

Answer: Earnings and profits.

Explanation:

This is not a true or false question as the options are given first.

It is assumed that dividends comes from earnings and profits so when a company distributes dividends, the total amount of those dividends cannot exceed the total amount of accumulated earnings and profits that the company has.

If the dividends exceed this amount, then they are to be considered as a return on capital to the shareholder and this is beholden to a different tax regime.

Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and sales of Product A is 370 units and of Product B is 740 units. There are three activity cost pools, with total cost and activity as follows:
Total Activity
Activity Cost Pools Total Cost Product A Product B Total
Activity 1 $23,205 900 150 1,050
Activity 2 $38,850 1,950 1,550 3,500
Activity 3 $10,598 145 245 390
The activity rate for Activity 2 is closest to:______.
a. 43.17.
b. 25.06.
c. 19.92.
d. 11.10.

Answers

Answer:

Predetermined manufacturing overhead rate (A2)= $11.1

Explanation:

Giving the following information:

Total Activity

Activity Cost Pools Total Cost Total

Activity 2 $38,850 3,500

To calculate the activity rate, we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate (A2)= 38,850 / 3,500

Predetermined manufacturing overhead rate (A2)= $11.1

Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below:
TC GL NG
Selling price per unit $ 494.40 $ 449.43 $ 469.68
Variable cost per unit $ 395.20 $ 320.21 $ 373.92
Minutes on the constraint 8.00 7.10 7.60
Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?
a. $12.40 per minute
b. $18.20 per minute
c. $129.22 per unit
d. $95.76 per unit

Answers

Answer:

Bertucci Corporation

The amount the company should be willing to pay to acquire more of the constrained resource per minute is:

a. $12.40 per minute

Explanation:

a) Data and Calculations:

                                             TC             GL                NG

Selling price per unit       $ 494.40   $ 449.43     $ 469.68

Variable cost per unit     $ 395.20    $ 320.21     $ 373.92

Contribution per unit        $99.20      $129.22       $95.76

Minutes on the constraint     8.00             7.10            7.60

Contribution per minutes  $12.40        $18.20        $12.60

Answer:

M

Explanation:

You are an insurance salesman. If you make 12% on all insurance sales and sold an average $35,000 / month, how much money did you make at the end of 12 months?

Answers

Answer:

$50,400

Explanation:

To do this first start by multiplying .12 x 35,000. The answer should be $4,200. After this multiply 4,200 by 12 in order to get the amount of money earned over a 12 month period. This will give you $50,400.

Which portion of government does reapportionment significantly impact? A. Congress
B. Judicial branch, specifically federal judges
C. Senate
D. House of Representatoves

Answers

Answer:

judicial branch , specifically federal judges

You must choose between four pieces of comparable equipment based on the cash flows given below. All four pieces have a life of 8 years.
Parameter A B C D
First cost $25,000 $35,000 $20,000 $40,000
Annual costs $8,000 $6,000 $9,000 $5,000
Salvage value $2,500 $3,500 $2,000 $4,000
The discount rate is 12%. Ignore taxes. The most preferable top two projects and the difference between their present worth values are most nearly:_____.
A. A and C, $234.
B. B and D, $170.
C. A and C, $170.
D. B and D, $234.

Answers

Answer:

You must choose between four pieces of comparable equipment based on the cash flows.

Explanation:

Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?
A. 9
B. 12
C. 16
D. 19
E. 28

Answers

Answer
E.28
So yeah hope I’m not too late

Answer:

Post Test: Government

Economics

Question #5

Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25?

Answers:

A. 9

B. 12

C. 16

D. 19

E. 28

__________________________________________________________

The 100% correct answer is:

E. 28

Explanation:

I took the test and this is 100% it

Hope this helped

list three classified ways of getting into small business?​

Answers

Answer:

sole , partnership , team business

Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000
Simone's actual labor hours worked totaled:_______.
a. 49,100.
b. 49,900.
c. 48,100.
d. 50,900.
e. cannot be determined based on the information presented.

Answers

Answer:

c. 48,100.

Explanation:

The computation of the actual labor hours worked is shown below;

Actual Overhead $392,000.00

Less: Underapplied overhead $7,200.00

Applied Overhead ($392,000 - $,7200) $384,800.00

Predetermined overhead rate $8.00

Actual labor hours ($384,800 ÷ 8) $48,100

hence, the actual labor hours worked is $48,100

Therefore the option c is correct

Answer:

Farrina Manufacturing uses a predetermined overhead application rate of $8 per direct labor hour. A review of the company's accounting records for the year just ended discovered the following: Underapplied manufacturing overhead: $7,200 Actual manufacturing overhead: $392,000 Budgeted labor hours: 50,000

Simone's actual labor hours worked totaled:_______.

a. 49,100.

b. 49,900.

c. 48,100.

d. 50,900.

e. cannot be determined based on the information presented.

-KeonLee

I hope it help

#Carry on learning

On March 1, 2021, McHugh Enterprises issued 1000 of its 8%, $1,000 bonds dated January 1, 2021 at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. McHugh paid $50,000 in bond issue costs. McHugh uses straight-line amortization. The interest expense recognized on July 1, 2021 will be:__________

Answers

Answer: $82000

Explanation:

Interest will be calculated as:

= No of shares x Face value per Share x Interest rate

= 1000 × $1000 × 8%

= 1000 × $1000 × 0.08

= $80000

Total face value of shares issued = 1000 × $1000 = $1,000,000

Issue Amount will be:

= No of shares x Face value per Share x Issue rate

= 1,000 x 1,000 x 98 %

= $980,000

Discount on issue will be:

= $1,000,000 - $980,000

= $20,000

Amortization of Discount on issue per annum will be:

= $20,000/10

= $2000

Therefore, interest expense will be:

= $80000 + $2000

= $82000

The accountant for Christiane Company forgot to make an adjusting entry for Depreciation expense for the current year. Which of the following is one of the effects of this error in the current year?
A. Revenues are overstated.
B. Net income is understated.
C. Total assets are overstated.
D. Total assets are understated.

Answers

Answer:

B. Net income is understated.

Explanation:

While computing the bills for an organization, if one makes an error while valuation of the of the goods or an inventory or a depreciation expenses, on the balance sheet, then it causes a corresponding error in the balance sheet for the company, which is represented on the income statement.

Thus in the context, when the accountant of Christiane company did not make an entry of the depreciation cost in the balance sheet for the current year, it produces an error for the current year in the form of the net income that is being understated.

7. How can you use nonverbal communication to express an idea to someone?

Answers

Ask them questions!! For example when you’re trying to teach someone a math problem don’t give them the answer instead help them figure out the answer.
Give them time to figure it out by answering verbally

successfulness of the competition policy in South Africa

Answers

- Here are five examples of South Africa's successful competition policy: 1) Consumers were given a variety of product options as well as affordable pricing. 2) In 1984, horizontal collusion and resale price maintenance were ruled illegal.

Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that the year in which this security is purchased is not a leap year.
(a) How many days are in the accrued interest period?
(b) If the coupon rate for this Treasury security is 7% and the par value of the issue purchased is $1 million, what is the accrued interest?

Answers

Answer:

A. 52 days

B. $1.00

Explanation:

A. Calculation to determine How many days are in the accrued interest period

February 15 to February 28 14 days

March (31 days in March) 31 days

April 1 to April 8 7 days

Actual number of days 52 days

(14 days+ 31 days+7 days)

Therefore The number of days that are in the accrued interest period is 52 days

B. Calculation to determine the accrued interest

Using this formula

Accrued interest=(Annual Dollar Coupon/2)x (Days in Accrued interest /Days in Coupon)

Let plug in the formula

Accrued interest=($7/2)x (52 days /182 days)

Accrued interest= $1.00

Note that February 15 through August 15 will give us 182 days in a coupon period

Therefore The Accrued interest is $1.00

Which of the following statements is correct?

a. The current cash flow from existing assets is highly relevant to investors. However, since the value of the firm depends primarily upon its growth opportunities, accounting net income projections from those opportunities are the only relevant future flows with which investors are concerned.
b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.
c. To estimate the net cash provided by operations, depreciation must be subtracted from net income because it is a non-cash charge that has been added to revenue.
d. Interest paid by a corporation is a tax deduction for the paying corporation, but dividends paid are not deductible. This treatment, other things held constant, tends to discourage the use of debt financing by corporations.
e. If Congress changed depreciation allowances so that companies had to report higher depreciation levels for tax purposes in 2013, this would lower their free cash flows for 2013.

Answers

Answer:

The correct statement is:

b. Two metrics that are used to measure a company's financial performance are net income and free cash flow. Accountants tend to emphasize net income as calculated in accordance with generally accepted accounting principles. Finance people generally put at least as much weight on free cash flows as they do on net income.

Explanation:

Net income and free cash flow are profitability measures.  While net income measures profitability by including all expenses: cash and non-cash, free cash flow measures profitability by excluding the non-cash expenses but instead includes spending on assets and working capital periodic changes.

Sabrina Company borrowed $225,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal payments of $24,704, including principal and interest at the end of every year for 15 years. Rounded to the nearest dollar, determine the balance in the Instalment Note Payable account on January 1, 2021, after making the first two annual payments.
a. $189,613.
b. $206,466.
c. $199.194.
d. $216,046.

Answers

Answer:

The correct option is b. $206,466.

Explanation:

Interest expense on December 31, 2019 = Note payable on January 1, 2019 * Interest rate = $225,000 * 7% = $15,750

Principal paid on December 31, 2019 = Annual fixed installment - Interest expense on December 31, 2019 = $24,704 - $15,750 = $8,954

Note Payable balance on January 1, 2020 = Note payable on January 1, 2019 - Principal paid on December 31, 2019 = $225,000 - $8,954 = $216,046

Interest expense on December 31, 2020 = Note payable on January 1, 2020 * Interest rate =$216,046 * 7% = $15,123

Principal paid on December 31, 2020 = Annual fixed installment - Interest expense on December 31, 2020 = $24,704 - $15,123 = $9,581

Note Payable balance on January 1, 2021 = Note payable balance on January 1, 2020 - Principal paid on December 31, 2020 = $216,046 - $9,581 = 206,465

From the options in the question, the closest one to the Note Payable balance on January 1, 2021 calculated above is b. $206,466. Therefore, the correct option is b. $206,466.

ABC has not ordered linen in some time, but when it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax is most likely to have an RFM score:________

Answers

Answer: 511

Explanation:

The RFM model enables a company to group its customers by their buying habits such that they can be treated accordingly to ensure repeated sales.

The three categories are:

Date of last purchaseFrequency of purchaseMonetary value of purchases

The range is 0 - 5 with a higher number representing higher scores.

This particular customer will get a 5 for date of last purchase to indicate that it has been a while since they last purchased.

They will get a 1 for frequency because they haven't purchased in high frequency in a while but because they used to buy a lot, we give it a 1 instead of 0.

They will also get a 1 for the monetary value for the same reason as above.

On January 1, Marigold Corp. issued $6600000, 9% bonds for $7029000. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Marigold uses the effective-interest method of amortizing bond premium. At the end of the first year, Marigold should report unamortized bond premium of:________
a) $397320
b) $398580
c) $375320
d) $297000

Answers

Answer:

a) $397320

Explanation:

Total premium of bond = Issue price - Par value

Total premium of bond = $7,029,000 - $6,600,000

Total premium of bond = $429,000

Total Annual payment to be made by firm = Coupon rate* par value of bond

= 0.09*$6,600,000

= $594,000

Interest part of the total annual payment made by firm = Market rate*Issue price of bond

= 0.08*$7,029,000

= $562,320

Premium of bond to be amortized at the end of year 1 = Total Annual payment to be made by firm - Interest part of the total annual payment made by firm

= $594,000 - $562,320

= $31,680

Unamortized premium at the end of year 1 = total premium of bond - amortized premium at the end of year 1

= $429,000 - $31,680

= $397,320

Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from the equipment is $3,000, after deducting $28,000 for depreciation. The revenue is to be received at the end of each year. The machine has a useful life of 3 years and no salvage value. Butler requires a 9% return on its investments. The present value of an annuity of $1 for different periods follows:
Periods 11 Percent
1 0.9009
2 1.7125
3 2.4437
4 3.1024
What is the net present value of the machine?
a. $(4,502).
b. $48,000.
c. $5,400.
d. $43,498.
e. $39,099.

Answers

Answer:

($16,2470.30)

Explanation:

After-tax cash flow = After-tax net income + Depreciation

After-tax cash flow = $3,000 + $28,000

After-tax cash flow = $31,000

Net present value = Purchase cost + After-tax cash flow*PVIFA(%, n)

Net present value = -$84,000 + $31,000*PVIFA(9%, 3)

Net present value = -$84,000 + $31,000*2.5313

Net present value = -$84,000 + $78,470.30

Net present value = -$16,2470.30

what does it mean to be an economically responsible citizen?

Answers

It’s the first one lol

Answer: Hope This Helps!

Explanation:

A responsible citizen has knowledge about his/her role in community, state and the world. A responsible citizen has a role in making the world a better place to live (for every components in biosphere). A responsible citizen is change agent that acts out against injustice in social, economic, and environmental sectors.

Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay.

a. True
b. False

Answers

true because they made a deal

Jim promises to marry Martha if Martha agrees to pay him a $10,000/month allowance as long as they are wedding. If this contract was not written, then once they are married Jim can still enforce the contract if Martha refuses to pay. This statement is True.

What is Contract?

A contract is an agreement between parties that establishes legal duties for both parties. The fundamental components necessary for the agreement to be a valid offer and acceptance, adequate consideration, capacity, and legality are: mutual assent, expressed through a contract-compliant offer.

Contracts are legal obligations that contain promises. State common law primarily governs contract law, and while broad contract law is prevalent nationwide, different state courts may have different interpretations of particular contract clauses.

Contracts are created when one party's promise results in the creation of a duty between the parties. A promise must be given in exchange for sufficient consideration in order for it to be regarded as a contract. There are two various theories or definitions to take into account: Benefit-Detriment theory of consideration and the bargain theory of consideration

To know more about Contract follow the link.

https://brainly.com/question/24191862

#SPJ2

he following labor standards have been established for a particular product: Standard labor-hours per unit of output 10.1 hours Standard labor rate $ 13.90 per hour The following data pertain to operations concerning the product for the last month: Actual hours worked 7,900 hours Actual total labor cost $ 106,650 Actual output 1,100 units
What is the labor efficiency variance for the month?
a. $47,779 F
b. $47,779 U
c. $43,335 F
d. $44,619 F

Answers

Answer:

d. $44,619 Favorable

Explanation:

Given the above information, labor efficiency variance is computed as;

= (Standard quantity - Actual quantity) × Standard rate

Standard quantity = 10.1 × 1,100 = 11110

Actual quantity = 7,900

Standard rate = $13.9

Then,

Labor efficiency variance =

(11,110 - 7,900) × $13.90

= (3,210) × $13.90

= $44,619 favorable

In a query, if you want to summarize the data and use a sum to apply addition to the summarized data, use the _____ tool.

SUM
Add
Summarize
Totals

Answers

I think the answer is sum. Sorry if wrong

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Evaluation of how profit will change based on an alternative course of action
Possible result of using an inappropriate overhead allocation method
Revenue forgone from an alternative use of an asset
Strategy that focuses on reducing the influence of bottlenecks
Not relevant to future decisions
Product cost distortion
Opportunity cost
Differential analysis
Sunk cost
Theory of constraints
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each phrase that follows with the term it describes.
Clear All
Recognizes that a dollar today is worth more than a dollar tomorrow
Often referred to as the discounted cash flow method
Also referred to as capital budgeting
Average income as a percentage of average investment
Can be determined by initial cost divided by annual net cash inflow of an investment
Cash payback period
Capital investment analysis
Average rate of return
Net present value method
Time value of money concept
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match the following descriptions and examples with the four performance perspectives in the balanced scorecard.
Clear All
Focuses on operational efficiencies and issues like improving manufacturing performance
Focuses on obtaining and retaining customers and customer base
Focuses on traditional accounting measures of performance, such as net income and cash flow
Focuses on research and development initiatives and employee training, retention, and satisfaction efforts
Customer
Learning and growth
Internal processes
Financial

Answers

Answer:

1. Match each phrase that follows with the term it describes:

a. Evaluation of how profit will change based on an alternative course of action

Correct term: Differential analysis

b. Possible result of using an inappropriate overhead allocation metho

Correct term: Product cost distortion

c. Revenue forgone from an alternative use of an asset

Correct term: Opportunity cost

d. Strategy that focuses on reducing the influence of bottlenecks

Correct term: Theory of constraints

e. Not relevant to future decisions

Correct term: Sunk cost

2. Match each phrase that follows with the term it describes:

a. Recognizes that a dollar today is worth more than a dollar tomorrow

Correct term: Time value of money concept

b. Often referred to as the discounted cash flow method

Correct term: Net present value method

c. Also referred to as capital budgeting

Correct term: Capital investment analysis

d. Average income as a percentage of average investment

Correct term: Average rate of return

e. Can be determined by initial cost divided by annual net cash inflow of an investment

Correct term: Cash payback period

3. Match the following descriptions and examples with the four performance perspectives in the balanced scorecard:

a. Focuses on operational efficiencies and issues like improving manufacturing performance

Correct option: Internal processes

b. Focuses on obtaining and retaining customers and customer base

Correct option: Customer

c. Focuses on traditional accounting measures of performance, such as net income and cash flow

Correct option: Financial

d. Focuses on research and development initiatives and employee training, retention, and satisfaction efforts

Correct option: Learning and growth

The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $30,000 and matures in 20 years. The bond makes no payments for the first six years, then pays $800 every six months over the subsequent eight years, and finally pays $1,000 every six months over the last six years. Bond N also has a face value of $30,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the required return on both these bonds is 8 percent compounded semiannually, what is the current price of Bond M? of Bond N?

Answers

Answer:

a. Current value of Bond M = $5,066.47

b. Current value of Bond N = $1,380.93

Explanation:

a. Calculation of current price of Bond M

Note: See the attached excel file for the calculation of the total present of value of the coupon payment of Bond M.

From the attached excel file, we have:

Total present of value of the coupon payment of Bond M = $3,685.54

Present value of the face value of Bond M = Face value / (100% + Required return)^(Number of years to maturity * Number of years in a year) = $30,000 / (100% + 8%)^(20 * 2) = $1,380.93

Current value of Bond M = Total present of value of the coupon payment of Bond M + Present value of the face value of Bond M = $3,685.54 + $1,380.93 = $5,066.47

b. Calculation of current price of Bond N

Since no coupon payments is made over the life of Bond N, we have:

Current value of Bond N = Present value of the face value of Bond N = Face value / (100% + Required return)^(Number of years to maturity * Number of years in a year) = $30,000 / (100% + 8%)^(20 * 2) = $1,380.93

Other Questions
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