Ask question

Ask question

All categories

2 years ago

14

Abc company is in the process of issuing bonds. The bonds have a stated interest rate of 6%, which is 2% above the current marke

t rate. What effect will the two interest rates have on the bond issue price?.

1 answer:

lyudmila [28]2 years ago

6 0

Answer:

The issue price will be above the bond's face value.

Explanation:

You might be interested in

Unlike a general partnership, in a limited partnership

Trava [24]

In a limited partnership:

The inactive partner has limited liability for the business's debts

Explanation:

In a general partnership all partners share equal financial responsibility for the firm's decisions.

This means that all partners are supposed to have equal liabilities but hat is not the case for limited ones.

In limited partnerships there is a general partner who owns most of the business and has most of the availability and the limited partner has pooled resources for the business but has very little personal responsibility to it.

This model is usually there when the firm needs some investors and the person running business is usually the owner only.

7 0

3 years ago

The bonds issued by United Corp. bear a coupon of 6 percent, payable semiannually. The bond matures in 20 years and has a $1,000

pishuonlain [190]

Answer: 6.40%

Explanation:

Use Excel to calculate this by the formula;

= RATE(Nper,Pmt,-Pv,Fv)

Nper is number of periods = 20 * 2 = 40 semi annual periods

Pmt is the payment = $6%/2 * 1,000 = $30

Pv is the present value = $955

Fv is future value or face value = $1,000

= RATE (40,60,-955,1000)

= 3.20% * 2 (because this is a semi annual rate)

= 6.40%

8 0

3 years ago

If you visited a doctor and the total cost of the visit was $50, but you had a $15

Vinvika [58]

Answer: $15

Explanation:

A copayment or copay simply refers to a fixed amount that is paid by a patient for a covered service, before the patient will receive service. It is an insurance policy which someone who's insured will pay whenever he or she access a medical service.

In this case, since the patient has a copay of $15, then the patient will have to pay $15.

7 0

3 years ago

The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% co

irinina [24]

Answer:

Equivalent units

Materials = 12,700 units

Conversion cost = 11,940 units

Explanation:

<em>Equivalent Units E.U) are notional whole units which represent incomplete work and are used to apportion costs between between work in progress and completed work.</em>

<em>Equivalent Units = Degree of completion (%) × units</em>

<em>We will use the weighted average method</em>

<em>Weighted average method</em>

<em>The weighted average method of valuation of work in progress does not separate opening work-in progress from the newly introduced.</em>

<em>Using the weighted average method</em>

<em />

<em>Equivalent unit for material cost</em>

Since direct materials are added at the the beginning of the production process the equivalent unit of direct material

EU = (100% × 10,800) + (100% ×1900) = 12700

<em>Note that 100% represent the degree of completion.</em>

<em />

Equivalent unit for conversion cost

<em>Item Equivalent unit</em>

Transferred out 100%× 10,800 = 10,800

Closing inventory 60% ×1900 = <u> 1140</u>

Total equivalent unit = <u>11,940</u>

5 0

3 years ago

Quality control charts usually have a central line and upper and lower control limit lines. Which of the following is not a reas

In-s [12.5K]

Answer:

A) A single plot falls above or below the control limits

Explanation:

The whole idea behind quality control is to identify events that need corrective action in the production process. Quality control requires that all units are tested to determine if they meet the standard.

Any unit that falls below or above the control limits must be investigated and retested in order to determine why it occurred and how you can prevent it from occurring again.

4 0

3 years ago