## Solution Library

#### Calculate Yield To Maturity And Forward Rate

Question Suppose the prices of zero-coupon bonds are as given in the table below, and each bond has a face value of \$1,000. Bond Price Maturity (years) A \$955.94 1 B \$870.22 2 C \$790.50 3 D \$715.28 4 ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Proof Of Bondâ€™s Duration Is Higher When Coupon Rate Is Lower

Question Prove Rule 2 for Duration: Holding maturity constant, a bond’s duration is higher when the coupon rate is lower. You may complete the proof using either mathematical notation or numerical examples.   Total Word Count 134 ... Read More

 Price: Original Price: \$3.00 Now at: \$1.50

#### Calculation Of Duration And Convexity Of Bonds

Question Given the two bonds in the table below, calculate duration and convexity for each of them, and decide which bond an investor should purchase if the investor is allowed to hold only one of them. Explain why.   Face Value Coupon Rate Maturity Yield to Matur ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Show Whether Law Of One Price Holds True

Question Given the information in the table below, does the Law of One Price hold? If not, what action should an investor take? Bond Price Cash Flow in Year 1 Cash Flow in Year 2 A \$970 \$100 \$1100 B \$936 \$80 \$1080 C ... Read More

 Price: Original Price: \$3.00 Now at: \$1.50

#### Calculation of COGS, Gross Profit and Ending Inventory

Question Boston Galleries uses the specific identification method for inventory valuation. Inventory information for several oil paintings follows.                        &nbs ... Read More

 Price: Original Price: \$1.00 Now at: \$0.50

#### Prepare Inventory With FIFO, LIFO and Weighted Average Methods

Question The January beginning inven­tory of the White Company consisted of 300 units costing \$40 each. During the first quarter, the company purchased two batches of goods: 700 Units at \$44 on February 21 and 800 units at \$50 on March 28. Sales during the first quarter were 1,400 units at \$75 ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Prepare Journal Entries With FIFO And LIFO Method

Question At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The first transactions that occurred during 20X3 follow: 1/2/20X3 Purchases on account: 500 units @ \$4 = \$2,000 1/15/20X3 Sales on account: 300 units @ \$8.50 = \$2,550 1/20/20X3 Purchases o ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Calculate COGS Ending Inventory Gross Profit With FIFO LIFO And WAM

Question Wave Riders Surfboard Company began business on January 1 of the current year. Purchases of surfboards were as follows: 1/3: 100 boards   @ \$125 3/17: 50 boards @ \$130 5/9: 246 boards @ \$140 7/3: 400 boards @ \$150 10/23: ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Calculation of Depreciation Using Straight Line And Double Declining Balance Methods

Question Betsy Ross Enterprises purchased a delivery van for \$30,000 in January 20X7. The van was estimated to have a service life of 5 years and a resid­ual value of \$6,000. The company is planning to drive the van 20,000 miles annually. Compute depreciation expense for 20X8 by using each of t ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Calculate Depreciation For A Washing Machine At College

Question Alpha Alpha Alpha, a college fraternity, purchased a new heavy-duty washing machine on January 1, 20X3. The machine, which cost \$1,000, had an estimated residual value of \$100 and an estimated service life of 4 years (1,800 washing cycles). Calculate the following: a. The machine’s ... Read More

 Price: Original Price: \$2.00 Now at: \$1.00

#### Calculate Machine Depreciation With Straight Line And Double Declining Balance Methods

Question Aussie Imports purchased a specialized piece of machinery for \$50,000 on January 1, 20X3. At the time of acquisition, the machine was estimated to have a service life of 5 years (25,000 operating hours) and a residual value of \$5,000. During the 5 years of operations (20X3 - 20X7), the mac ... Read More