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Norma-Jean [14]
1 year ago
15

rick's pawn shop issued 11% bonds, dated january 1, with a face amount of $400,000 on january 1, 2022. the bonds sold for $370,0

00. for bonds of similar risk and maturity the market yield was 12%. interest is paid semiannually on june 30 and december 31. rick's determines interest at the effective rate and elected the option to report these bonds at their fair value. on december 31, 2022, the fair value of the bonds was $365,000, with $2,000 of the change due to a change in general interest rates. rick's statement of comprehensive income will include:
Business
1 answer:
geniusboy [140]1 year ago
6 0

An unrealized gain of $5,412 from the change in the fair value of the debt.

<h3>How does general interest rate risk work?</h3>

Interest-rate risk (IRR) is the exposure of a financial institution to unfavorable changes in interest rates. Accepting this risk is common practice in the banking industry and can be a key driver of profitability and shareholder value.

Explanation:

Given that the bond's face value is $400 000

Bond selling price: $370,000

yield until maturity equals 12%

Bond has a fair value of $365,000.

Value shifted = $2,000

Net income and OCI are both included in comprehensive income.

To learn more about Interest-rate risk (IRR) refer to:

brainly.com/question/20715710

#SPJ4

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A 1,500 square foot office space is leased at $12.00 square foot. The space is vacant one month out of the year. Office expenses
Ymorist [56]

Answer:

$7500

Explanation:

An expense stop is a tool used by landlords to limit their operating costs and maintain predictable operating costs over the terms of the lease. Hence, even though the operating expense is $6.50, the landlord is only accountable for $6.

The operating costs annually would be: 1500 x 6 = 9000

(Even though the office space is vacant for one month of the year, maintenance costs will still be incurred throughout the year, whether leased or vacant)

Annual income :

1500 x 12 = $18000 (12 months)

It should be noted though that the office space is vacant for one month. Hence, landlord only receives 11 months worth of leased rent. Actual income : (18000/12) x 11 = $16500

Net operating income annually : Total income - Total expenses = $16500 - $9000 = $7500

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3 years ago
According to the chart, the initial monthly payment Demarco and Tanya should anticipate paying on principal and interest is ____
NeX [460]

Answer:

1. B. $811

2. C. $1,211

Explanation:

7 0
3 years ago
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The sources of economic growth are​ _______. A. work hours growth and labor productivity growth B. democracy and labor productiv
Luden [163]

Answer:

A. work hours growth and labor productivity growth

Explanation:

An economy is a function of how money, means of production and resources (raw materials) are carefully used to facilitate the demands and supply of goods and services to meet the unending needs or requirements of the consumers.

Hence, a region's or country's economy is largely dependent on how resources are being allocated and utilized, how many goods and services are to be produced, what should be produced, for whom they are to be produced for and how much money are to be spent by the consumers to acquire these goods and services.

Basically, there are four (4) main types of economy and these are;

I. Mixed economy.

II. Free market economy.

III. Traditional economy.

IV. Command economy.

Generally, the sources of economic growth of a country are​ work hours growth and labor productivity growth.

Labor (working) is simply the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

7 0
3 years ago
Why might you want to use an encoder to convert a WAV file to an MP3 file ?
Alona [7]
Mp3 files are more easily assessed and used by the public, making it a more viable option for files which you intend to share. 
8 0
3 years ago
Keys industries has assets of $2,100, sales of $2,960, operating costs of $2,675, and $250 of total current liabilities consisti
GalinKa [24]

<u>Calculation of Return on Total Assets:</u>

Return on Total assets can be calculated using the following formula:

Return on Total Assets = Net Income / Total Assets

We can calculate Net income as follows:

Sales $2960

Less: Operating Costs $2675

Less: Interest charges $125

Income before tax = 160

Less: Tax (160*40%)  = 64

Net Income = $96


Hence , Return on Total Assets = 96/2100 = 0.0457 =<u>4.57%</u>




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3 years ago
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