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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

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Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances
Mila [183]

Answer:

Explanation:

We solve by taken into consideration the transaction on a,b,c and d. This will allow us to get the unadjusted ending balance of each account we then compare it to be the adjusted balance on december 31 to find the adjustments made.

a) For supplies account:

supplies, November 30                                                           $2,000

purchase of additional supply doing December                      4,500

                                                                                                   -----------

supplies, December 31(unadjusted)                                       $6,500

Adjustment squeeze                                                                  3,000

                                                                                                  -------------

supllies december 31                                                                 3,500

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to supplies,expense and credit to supplies for $3,000                    

b) For supplies account:

Prepaid, Insurance November 30                                           $8,000

Additional insurance payment doing December                             0

                                                                                                   -----------

Prepaid insurance , December 31 (unadjusted)                      $8,000                

Adjustment squeeze                                                                   2,000

                                                                                                  -------------

Prepaid insurance december 31 (adjusted )                              6,000

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to insurance expense and credit to prepaid insurance for $2,000          

c) For supplies account:

salary payable November 30                                                  $11,000

salary paid doing December                                                      11,000

                                                                                                   -----------

Salary payable , December 31 (unadjusted)                                      0                

Adjustment squeeze                                                                  16,000

                                                                                                  -------------

Prepaid insurance december 31 (adjusted )                             $16,000

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to salary which represent unpaidupaid salary payable $16,000                              

d) For supplies account:

Deffered revenue November 30                                                          $3,000

Additiona Advances from customer in december                                         0                                    

                                                                                                                -----------

Refered revenue , December 31 (unadjusted)                                      3,000                

Adjustment squeeze                                                                               1,500

                                                                                                              -------------

refered revenue december 31 (adjusted )                                            $1,500

The adjustment is squeeze meaning it was used as force balancing. Adjustmnet include a debit to defred revenue and a credit to service revenue for $1,500 .                              

5 0
3 years ago
Matching Exercise: Match the type of bond to its definition. a)The Catastrophe Bond: b)A Warrant Bond: c)An Income bond: d)A Con
RUDIKE [14]

Answer:

Match the type of bond to its definition.

a)The Catastrophe Bond:

This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity.

b)A Warrant Bond:

This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution.

c)An Income bond:

This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt,

d)A Convertible bond:

This type of security provides a stable payment for the holder as payment for the lending of a certain amount of money. However, it has a special right to be converted in stock if the holder wants it.

e)A Put bond:

This type of security compromises the issuer to buy a certain stock from the holder at a certain price with a certain duration.

Explanation:

The reasons to back this answer are:

a)The Catastrophe Bond:

This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity. This is a very effective bond to issue debt in any unexpected event.

b)A Warrant Bond:

This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution. This is a very good bond to reward management for good results.

c)An Income bond:

This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt, This is a very good bond to not compromise to use a payment of a debt, and keeping it outside a bad scenario for the company.

d)A Convertible bond:

This type of security provides a stable payment for the holder as payment for the lending of a certain amount of money. However, it has a special right to be converted into stock if the holder wants it. This bond is very good to increase the stocks in the market and reduce the sare price to pump it.

e)A Put bond:

This type of security compromises the issuer to buy a certain stock from the holder at a certain price with a certain duration. This type of bond is very good to sell short the position of a company with bad performance.

3 0
3 years ago
Sales mix is the relative percentage in which a company sells its multiple products. the trend of sales over recent periods. a m
marusya05 [52]

Answer:

is relative percentage in which a company sells its multiple products.

Explanation:

Sales mix is method use in calculating thee each unit/proportion of goods that are sale in the company relatively to the total sales. Whenever there is a change in the sales mix of a firm, then the profit change, sales mix helps to know which particular product sells more than the other one in the company.it should be noted that sales mix is relative percentage in which a company sells its multiple products.

6 0
2 years ago
What would likely be covered under homeowners insurance but not by renters insurance?
kozerog [31]
If this is a multiple choice the answer is the option about the tree branch breaking your bedroom window...hope this helps:)
4 0
3 years ago
Jeff and Rhonda are married and have two children, Max and Jen. Max is 20, attends college in the Los Angeles area full-time, an
Rufina [12.5K]

The nuclear family .

Explanation:

This is because every extended family has a link with their relation. They need to build their home.

6 0
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