Question: Explain the attached questions below. Homework for Chapter 10: Problem # 1 in the text (Chapter 10) NOTE: PLEASE USE THE ATTACHED EXCEL FILE TITLED



Explain the attached questions below.



Homework for Chapter 10: Problem # 1 in the text (Chapter 10) NOTE: PLEASE USE THE ATTACHED EXCEL FILE TITLED "Homework for Chapter 10_Excel" TO SOLVE THE FOLLOWING PROBLEM. You are considering the following bonds to include in your portfolio: Bond 1 Bond 2 Bond 3 Price $900.00 $1,100.00 $1,000.00 Face Value $1,000.00 $1,000.00 $1,000.00 Coupon Rate 7.00% 10.00% 9.00% Frequency 2 4 Maturity (Years) 15 20 30 Required Return 9.00% 8.00% 9.00% a) Determine the highest price you would be willing to pay for each of these bonds using the PV function. Also find whether the bond is undervalued, overvalued, or fairly valued (25 points). b) Determine the yield to maturity on these bonds using the RATE function assuming that you purchase them at the given price. Also calculate the current yield of each bond (25 points). c) Determine the yield to call of each bond using the RATE function if the time to first call and the call premium are the following (25 points): Bond A Bond B Bond C Call Premium % 3.00% 4.00% 5.00% Years to first call 5 4 3 d) Assume the following settlement dates for each bond: Bond 1 Bond 2 Bond 3 Settlement Date 1/1/2018 6/1/2018 9/1/2018 Use the PRICE and YIELD functions to recalculate your answers on parts (a), (b), and (c) (25 points).2. A transportation service provider wants to select a telematics device to track the movement of its fleet of trucks. The device is attached to a truck and transmits location and speed of the truck for operational planning purposes. The characteristics of the device that are relevant for selection are location accuracy, speed accuracy, device battery life and cost of device. The transportation company will select a device from three options A, B and C. The following matrix provides the estimation of relative importance of the criteria. Location Accuracy Speed Accuracy Battery Life Cost of Device Location Accuracy 1.00 4.00 2.00 3.00 Speed Accuracy 0.25 1.00 0.50 0.75 Battery Life 0.50 2.00 1.00 1.50 Cost of Device 0.33 1.33 0.67 1.00 The following matrices provide the relative favorability of the devices with respect to the criteria. Location Accuracy: Device A Device B Device C Device A 1.00 1.50 2.00 Device B 0.67 1.00 1.25 Device C 0.50 0.80 1.00 Speed Accuracy: Device A Device B Device C Device A 1.00 0.67 2.00 HW1 ISE 105 Spring 2019 Device B 1.50 1.00 2.00 Device C 0.50 0.50 1.00 Battery Life: Device A Device B Device C Device A 1.00 1.50 0.50 Device B 0.67 1.00 0.33 Device C 2.00 3.00 1.00 Cost of Device: Device A Device B Device C Device A 1.00 1.80 2.00 Device B 0.55 1.00 1.25 Device C 0.50 0.80 1.00 Select the best device using the Analytic Hierarchy Process. [50 points]Topic 6 The following is an accounts receivable aging schedule for Caulfield Lid on 30 June 2019. Customer Total Number of days past due 1-30 31-60 61-90 Over 90 Bela 18,000 11,000 7,000 Tom 22,000 22,000 Jason 35,000 15,000 12,000 8,000 Lee 41,000 41,000 Estimated percentage uncollectable 5% 10% 25% 50% At 30 June 2019, the unadjusted balance in allowance for doubtful debts is a credit of $8,000. At 31 March 2020, a debtor named Alan declared bankrupt and unable to pay $500 owing to Caulfield Lid. At 15 May 2020, a cheque for $500 is received from Alan whose account was written-off as uncollectable on 31 March. At 30 June 2020, the unadjusted balance in allowance for doubtful debts is a debit of $500 and the ageing schedule indicates that total estimated bad debts will be $25,000. Required: a) Show the general journal entry to record the adjusting entry at balance day 30 June 2019. b) Show the general journal entry record the events and transactions related to Alan in 2020. c) Show the general journal entry to record the adjusting entry at balance day 30 June 2020
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