The Quoted Ask Yield on a 30-Year $1000 Par T-Bond

question 30

Multiple Choice

The quoted ask yield on a 30-year $1000 par T-Bond with a 6.25% coupon and a price quote of 106:16 is ___________ (use semiannual compounding) .

• A) 2.94%
• B) 2.90%
• C) 5.79%
• D) 5.87%
• E) 4.95% $1,065.00 = $31.25  PVIFA (r%, 60) + $1,000  PVIF (r%, 60 yrs); trial and error or financial calculator for r

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to each unit of production, based on estimated or budgeted overhead costs and activity.

Machine-Hours

A measure of production output or activity level based on the total hours machines are operating.

Total Manufacturing Cost

The cumulative expense of producing goods, including labor, materials, and overhead costs.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead to products or job orders, calculated before the production period begins.