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Llana [10]
2 years ago
9

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These b

onds will sell at a price that is:
Business
1 answer:
sasho [114]2 years ago
7 0

As a result of the interest rate being 8% and the coupon being 7%, these bonds will sell at a price less than $500,000.

<h3>Why would the bonds sell less than $500,000?</h3>

When a bond's coupon rate is less than the market rate of interest, it is referred to as a discount bond.

This means that the bond will be sold at a price that is less than its face value amount. In this case the market rate is higher than the coupon rate so the bond will sell for less than $500,000.

Find out more on discount bonds at brainly.com/question/23265123.

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Using the same scenario as in number 2, your interviewer tells you that the game costs $1 to play and it has an expected value o
Anastaziya [24]

Roll sum of 19 sum of 17 sum of 15 sum of 13 doubles other winnings $5 $3 $2 $1 $.5 $0.

<h3>What is Roll sum?</h3>

The 12-month rolling sum is the total of the previous 12 months. As the 12-month period "rolls" forward each month, the amount from the most recent month is added and the amount from the previous year is deducted. As a result, a 12-month total has been carried forward to the new month.

Cumulative sums, often known as running totals, are used to show the total sum of data as it grows over time (or any other series or progression). This allows you to see the entire contribution of a specific measure across time.

The total number of possible outcomes is 36, which is equal to the total number of the first die (6) multiplied by the total number of the second die (6).

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7 0
2 years ago
Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $2.25 at the end of the year. Its div
nalin [4]

Answer:

The expected rate of return is 17.75%

Explanation:

In order to calculate the expected rate of return we would have to calculate the following formula according to the given data:

expected rate of return= (expected dividend/price)+growth

expected rate of return= ($2.25/$20)+6.50%

expected rate of return=0.1125+0.0650

expected rate of return=0.1775

expected rate of return=17.75%

The expected rate of return is 17.75%

8 0
4 years ago
A building with an appraisal value of $154,000 is made available at an offer price of $172,000. The purchaser acquires the prope
swat32

Answer:

Option (C) 160,000

Explanation:

Data provided in the question:

Appraisal value = $154,000

Offer price = $172,000

Cash = $40,000

Note payable = $45,000

Mortgage amount = $75,000

Now,

Cost basis recorded in the buyer's accounting records to recognize this purchase will be

=  Cash + Note payable + Mortgage amount

= $40,000 + $45,000 + $75,000

= $160,000

Hence,

Option (C) 160,000

5 0
4 years ago
Based on the following data, what is the inventory turnover? Sales on account during year $400,000 Cost of goods sold during yea
goblinko [34]

Answer:

3 times

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.

Given:

Cost of goods sold = $255,000

Beginning inventory = $90,000

Ending inventory = $80,000

Inventory turnover is the ratio of cost of goods sold to inventory receivable.

It can be calculated as:

Average inventory = \frac{Beginning inventory + Ending inventory}{2}

Average inventory = \frac{90,000 + 80,000}{2}

Average inventory = \frac{170,000}{2}

Average inventory = $85,000

Inventory turnover ratio = \frac{Net credit sales}{Average inventory}

Inventory turnover ratio = \frac{255,000}{85,000}

Inventory turnover ratio = 3 times

8 0
3 years ago
Cash of $12,000 will be received in year 6. Assuming an opportunity cost of capital of 7.2%, which of the following is true? The
ozzi

Answer:

The present value is $7,907

Explanation:

12000(1+0.072)^-6=7907 (round up)

4 0
3 years ago
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