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AnnyKZ [126]
1 year ago
14

Determine whether the following would be reported in the financing activities section of the statement of cash flows and, if so,

specify whether it is a cash inflow or outflow.
(a) Sale of bonds at a discount.
Business
1 answer:
Marat540 [252]1 year ago
7 0

While you buy a bond, you're loaning cash to both a government and a corporation. whilst these entities first difficulty the bonds, they're bought at "par", which means you lend, say, $a hundred, and at the adulthood of the bond, you'll acquire $100 lower back. at the time of the difficulty, the coupon charge is also set, primarily based on modern-day interest quotes and the entity's credit score. This determines the yearly or semiannual quantity you will acquire when buying the bond.

A bond can be bought on the secondary market before adulthood. however, the price of this bond will promote greater than par (i.e. a premium) if present-day interest quotes decrease than what they had been while the bond was issued and less than par if interest fees have gone up (i.e. a reduction).

An example, a bond is issued these days, maturing in 10 years with an annual coupon of five%. In 5 years, hobby fees have risen to 7%, so someone shopping for the bond with a five% coupon would demand a discount at the face price (in any other case, they could just buy the 7% bond at par).

Learn more about bond here: brainly.com/question/25965295

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What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from tod
Pepsi [2]

Answer:

Present Value = $290.20

Explanation:

The present value of a future payment can be calculated with the following formula:

PV = FV / (1 + i)N

Where i is the annual interest rate or discount rate, and t is the number of years until the payment will be received.

PV = Present Value = ?

FV = Payment = $4,400

i = 8.3% = 0.083

N = 20 - 6 = 14

PV = $4400 / (1 + 0.083)(20 - 6)

PV = $4400 / (1.083 * 14)

PV = $4400 / 15.162

PV = $290.1992

Present Value = $290.20 (Approximated)

4 0
3 years ago
Which transitional word or phrase would most efficiently increase the cohesiveness of the following sentences?
Yanka [14]

Answer:

however

Explanation:

The best of the transitional word or phrase would most efficiently increase the cohesiveness of the following sentences is ''however''

"The company recorded a 11 percent increase in domestic profits, however the company has not been able to establish much demand in foreign countries."

It shows that although the company is doing well domestically by growing its profits, it has not been able to do so internationally.

4 0
2 years ago
According to federal law, an insurance company under the provisions of the Investment Company Act of 1940 must allow a variable
torisob [31]

Answer: 24 months

Explanation:

The law of the state allows for periods more than 24 months, a 2 years of conversion privilege is required by federal law.

7 0
2 years ago
Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between co
White raven [17]

Answer:

Disposible income.

Marginal propensity to consume.

Disposible income, marginal propensity to consume.

The consumption will increase by  $800

Explanation:

The consumption function shows the relationship between consumption spending and disposible income.

The slope of the consumption function is the marginal propensity to consume.

Changes in consumption can be predicted by multiplying the change in disposible income by the marginal propensity to consume.

Given:  MPC = 0.80

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consumption increase =  0.80*$1000

                                     = $800

Therefore, The consumption will increase by  $800.

7 0
2 years ago
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scoundrel [369]

Yes. Collective bargaining is negotiation of wages working conditions by an organized group of employees (often called a union). The union representatives meet with the employer/employer's representatives to negotiate terms.

6 0
3 years ago
Read 2 more answers
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