1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Anettt [7]
2 years ago
11

Sykora Corp. sells $540,000 of bonds to private investors. The bonds are due in 5 years, have a 6% coupon rate and interest is p

aid semiannually. Sykora received $490,222 for the bonds at issuance. The effective rate on these bonds is:
Business
1 answer:
Katen [24]2 years ago
7 0

The effective rate on these bonds is 7.17%

<h3>What is the effective rate?</h3>

The effective interest rate of a bond is the rate that equates the present value of the bond's future interest payments and the bond's maturity value to the bond's current market value.

The effective interest rate can be determined using a financial calculator:

  • Cash flow in year 0 = -490,222
  • Cash flow from period 1 - 12 = 6% x 540,000 = 32,400
  • Cash flow in year 6 or period 12 = $540,000

effective interest rate = 7.17%

To learn more about effective interest rate, please check: brainly.com/question/13735414

#SPJ1

You might be interested in
Laubitz Company begins operations on Apr.1. Information from job cost sheets shows the following:
Inessa [10]

Answer:

1. 2. April 30 $11600

31-May $20100

2. April 30 $3,200

31-May $11,90

3. Profit April 0

May$800

June $2975

Explanation:

1) Calculation for Work in Process Inventory at

April 30 and 31-May

Work in Process Inventory at

April 30=7500+4100

Work in Process Inventory at

April 30=$11600

Work in Process Inventory at31-May =4100+6900+4700+4400

Work in Process Inventory at31-May= $20100

2) Calculation for Finished Goods Inventory at

April 30 and 31-May

Finished Goods Inventory at

April 30: $3,200

Finished Goods Inventory at 31-May =7500+4400

Finished Goods Inventory at 31-May= $11,900

3) Calculation for Gross Profit

Gross Profit April : 0

Gross Profit May =3200*25%

Gross Profit May=800

Gross ProfitJune :- Job 10 =(7500+4400)*25% Gross Profit June 2975

6 0
3 years ago
Brandon grew up working on a farm but went to school to become an accountant. He decides to put all of his knowledge to work.
Angelina_Jolie [31]

Answer:B. Running his own small farm.

Explanation:

Having got the exprience in running a farm, couple with his financial and managerial knowledge from Accounting will help him to be successful.

8 0
4 years ago
Which of these statements about life insurance benefits is false?
Zigmanuir [339]
<span>Employers normally require employees to pay a large portion of thecost of the life insurance benefit.</span>
3 0
3 years ago
Discuss the relationship between bond prices and interest rates. What impact do changing interest rates have on the price of lon
Doss [256]

Interest rates and bond prices have an adverse correlation. Bond prices grow during periods of low-interest rates and decline during periods of high-interest rates.

<h3>What is the interest rate?</h3>

The cost of borrowing and the rewards for saving are both indicated by the interest rate. Since there is a premium if the coupon rate is higher than the market rate, the bond's price will be higher. Bond prices will decrease if the coupon rate is lower because there will be a discount.

The price of long-term bonds is more affected by interest rates than the price of short-term bonds. A bond's price varies depending on how long it is.

Learn more about bond prices, here:

brainly.com/question/15518377

#SPJ1

5 0
2 years ago
A quality control activity analysis indicated the following four activity costs of an administrative department:
Doss [256]

Answer:

total sales are the internal failure costs is 2%

Explanation:

given data

form to reduce errors =  $15,000

customer complaints = 75,000

Verifying = 30,000

Correcting errors = 60,000

Total = $180,000

sales = $3,000,000

to find out

total sales are the internal failure costs

solution

we know here that internal failture cost is express as

internal failture cost  = correcting error in form   ...........1

internal failture cost  =  $60000

and

internal failture cost as % of total cost is here as

internal failture cost to sale = \frac{internal\ failture\ cost}{sales}   .......2

internal failture cost to sale = \frac{60000}{3000000}

internal failture cost to sale = 2%

so total sales are the internal failure costs is 2%

3 0
4 years ago
Other questions:
  • Which is not a method of fiscal policy? government purchases of goods and services changing tax rates changes in the money suppl
    7·1 answer
  • Which of the following best describes business impact analysis?
    10·1 answer
  • Recently, the level of gdp has declined by $60 billion in an economy where the marginal propensity to consume is 0.75. aggregate
    15·1 answer
  • ​"We ought to do more for the education of our​ children." Statements using words like ought or should are A. normative statemen
    6·1 answer
  • Clear Call Corporation makes phones, which are sold to consumers by DefDeals stores. Erna files a product liability suit against
    6·1 answer
  • How much money should be deposited annually in a bank account for five years if you wish to withdraw ​$5 comma 500 each year for
    10·1 answer
  • Peppertree Company has two divisions, East and West. Division East manufactures a component that Division West uses. The variabl
    11·1 answer
  • Define direct advertising​
    10·1 answer
  • What are your thoughts about starting out too large to maintain stability, as opposed to
    5·2 answers
  • In what specific ways do you see yourself as being a part of a globalized world?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!