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2 years ago

a bond that pays no annual interest (or coupons) and has a face value at maturity will fetch a price today that is equal to

1 answer:

4 0

A bond that pays no annual interest (or coupons) and has a face value at maturity will fetch a price today that is equal to the present value of its face value.

What is face value?

The nominal value of a security is referred to as Face Value in the stock market. When referring to stocks, the term "Face Value" is jargon for the stock's initial purchase price, which is indicated on the certificate. One of the core ideas of the stock market is the face value of stocks and bonds.

What is annual interest?

The interest rate that is applied throughout a year is referred to as the annual interest rate. Interest rates may be imposed monthly, quarterly, or biannually, among other time frames. However, interest rates are typically annualized.

Learn more about face value: brainly.com/question/14294215

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A company with 82,146 authorized shares of $5 par common stock issued 31,717 shares at $14 per share. Subsequently, the company

Kazeer [188]

Answer:

$16,492.84

Explanation:

Calculation to determine the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend

Amount transferred to Paid-in capital accounts=(Common stock*Stock dividend declared percentage)*Market price

Let plug in the formula

Amount transferred to Paid-in capital accounts=(31,717 shares*2%)*$26 per share

Amount transferred to Paid-in capital accounts=634.34*$26 per share

Amount transferred to Paid-in capital accounts=$16,492.84

Therefore the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend is $16,492.84

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3 years ago

Longview Manufacturing Company manufactures two products (I and II). The overhead costs ($60,500) have been divided into three c

Mila [183]

Answer:

a. $8,000.

Explanation:

The computation of the amount of overhead cost assigned to the product I is shown below:

= $40,000 ÷ 2,500 × $500

= $8,000

Hence, the amount of overhead cost assigned to the product I is $8,000

Therefore the correct option is a.

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3 years ago

A domestic manufacturer of watches purchases quartz crystals from a Swiss firm. The crystals are shipped in lots of . The accept

STatiana [176]

Answer:

The curve and calculation are attached below

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4 years ago

The intersection of a row and a column is referred to as a _____.

olga_2 [115]

The answer is Cell.

Hope this helps!

5 0

3 years ago

On January 1, 2014, Fishbone Corporation sold a building that cost $260,300 and that had accumulated depreciation of $105,700 on

Drupady [299]

Answer:

1. The amount of gain should be reported: $37,983

2. The answer is $291,131

Explanation:

The actual consideration's receipt is the present value of the cash flow from the note which is calculated as 249,400 / ( 1+9%)^3 = $192,582.5599

The Net book value of asset = Original cost - accumulated depreciation = 260,300 - 105,700 = $154,600

=> Gain on sales = $192,582.5599 - $154,600 = $37,983

To determine the amount needs to paid out for the purchase, determine the price per stock first.

The stock price will be determined as the present value of cash flows from bonds, discounted at yield to maturity.

We have: Annual coupon payment = 1,000 x 9% = $90

=> Stock price = (90/11%) x ( 1 - 1.11^-10) + 1,000/1.11^10 = 882.21536

=> Amount need to be paid for the purchase = stock price x bond purchased = 882.21536 x 330 = $291,131

6 0

3 years ago