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Strike441 [17]
3 years ago
7

You bought a bond 8 years ago for​ $1,000. It has a​ $1,200 face value and a nominal annual bond rate of​ 10%, paid semiannually

​ (so it pays​ 5% of the face value every 6​ months). You'd like to sell it now and get a nominal annual yield of​ 18%. How much should you sell the bond​ for?

Business
1 answer:
Llana [10]3 years ago
7 0

Answer:

The correct answer is $1990.10.

Explanation:

According to the scenario, the given data are as follows:

Present value = $1,000

Time period = 8 years

Time period (Nper) ( semiannual) = 16

Bond rate semiannual = 5%

So, Semiannual Payment (pmt) = $1,200 × 5% = $60

Annual yield = 18%

So, Semiannual yield ( rate ) = 9%

So, by putting all this in financial calculator, we get the following result.

Attachment is attached below.

The future value is $1,990.10.

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Suppose that the market for computers is dominated by a single firm, like Dell, that is able to exert influence over prices and
Salsk061 [2.6K]

Answer:

many buyers and sellers

Explanation:

Based on the information provided within the question it can be said that this situation violates the perfect competition assumption of many buyers and sellers. This is a model that many buyers and sellers in a competitive market agree on a single market price, and that no individual has influence over the price. Therefore if a single company, like Dell in this scenario, is able to influence the price then it is violating this assumption.

8 0
3 years ago
Presented below are selected account balances for Homer Winslow Co as of December 31, 2014.
Ronch [10]

Answer:

Sales Revenue 410,000 debit

        Income Summary    410,000 credit

--to close revenues accounts--

Income Summary               95,000 debit

      Administrative Expenses          38,000  credit

      Income Tax Expense                30,000  credit

      Sales Returns and Allowances 12,000  credit

      Sales Discounts                         15,000 credit

--to close expenses and other--

Income Summary     18,000 debit

Dividends                                   18,000 credit

--to close dividends--

Income summary    297,000 debit

   Retained Earnings      297,000 credit

--to close the income summary against RE--

Explanation:

We have to close against income summary he temporary accounts:

To close this accounts we need to post them in their opposite side of the normal balance. Revenues will be debited while expenses credited.

At last, we solve for the income summary balance and close it against retained earnings

410,000 - 95,000 - 18,000 = 297,000

4 0
3 years ago
E21A­1. (Lessee Entries; Finance Lease with No Residual Value) (LO 1, 4) DU Journeys enters into an agreement with Traveler Inc.
Nadusha1986 [10]

Answer:

<u>(a) Prepare DU Journeys' journal entries for 2016, 2017, and 2018.</u>

Date            Account Title and Explanation    Debit($)     Credit($)

31/12/2016  Right of Use asset                          15,000

                   Lease Liability                                                    15,000

(to record lease of asset)

31/12/2017  Interest Expense                             1,200

                  Lease Liability                                 4,352.82

                  Cash                                                                    5,552.82

(to record interest expense and lease payment)

31/12/2017  Amortization Expense                     5,000

                  Right of use Asset                                               5,000

(to record amortization expense for right of use asset)

31/12/2018 Interest Expense                               851.77

                 Lease Liability                                   4,978.69

                 Cash                                                                      5,830.46

(to record interest expense and lease payment)

31/12/2018 Amortization Expense                      5,000

                 Right of use Asset                                                 5,000

(to record amortization expense for right of use asset)

Date: 31/12/2016

Annual Payment: -

Interest Expense: -

Reduction of Lease Liability: -

Lease Liability: $15,000

Depreciation Expense: -

Date: 31/12/2017

Annual Payment: $5,552.82

Interest Expense: $1,200

Reduction of Lease Liability: 4352.82

Lease Liability: 10647.18

Depreciation Expense: $5,000

Date: 31/12/2018

Annual Payment: $5,830.46

Interest Expense: 851.7744

Reduction of Lease Liability: 4978.6856

Lease Liability: -44331.5056

Depreciation Expense: $5,000

Date: 31/12/2019

Annual Payment: $6,121.98

Interest Expense: -3546.520448

Reduction of Lease Liability: - 44331.5056

Lease Liability: 0

Depreciation Expense: $5,000

(b) Consumer Price index means: book the same amount year to year for payment. The increase in CPI may be booked as an expense when incurred.

5 0
3 years ago
The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
sergey [27]

How many shares were authorized?

Number of shares authorized are 4,000,000

--------

How many shares were issued?

Number of shares issued are 2,080,000

--------

How many shares are outstanding?

Number of shares outstanding = Number of shares issued - Numberof shares repurchased

Number of shares outstanding = 2,080,000 - 80,000

Number of shares outstanding = 2,000,000

--------

What is the balance of the Common Stock account?

Balance of common stock = Number of shares issued * Parvalue

Balance of common stock = 2,080,000 * $1

Balance of common stock = $2,080,000

--------

What is the balance of the Treasury Stock account?

Balance of treasury stock = Number of shares repurchased * Priceper share

Balance of treasury stock = 80,000 * $25

Balance of treasury stock = $2,000,000

--------

2)

June 12:  Issued 50,000 shares of $3 stated value common stock for cash of $250,000.

Cash; 250,000

Paid-In Capital in Excess of Par--Common Stock 50,000 x 3 = 150,000

Common Stock: 100,000

July 11:  Issued 2,000 shares of $100 par value preferred stock for cash at $108 per share.

cash: 2000 x 108 = 216,000

preffered stock : 2,000 x 100 = 200,000

Paid-In Capital in Excess of Par--Preferred Stock : 16,000

Nov. 28: Purchased 2,000 shares of treasury stock for $10,000.

Treasury Stock 10,000

Cash 10,000

6 0
3 years ago
Which characteristic describes the privatization of Social Security?
aalyn [17]
<span>The characteristic that describes privatization of Social Security is option C) enables Americans to invest their Social Security Contributions in the stock market. This is the most accurate option but still not wholly accurate. There are different proposals for privatizing. Most would have the existing funds used to buy into the market and then the individual person would have different options for how their own funds were then handled within the market. For instance they could take over control of their fund and buy/sell their various shares. Or they could move their shares to be handled by an investment company, or even just leave them in the original shares that were bought by the government during the transition to privatization. Bottom line, the individuals would have some control of there shares in the stock market.</span>
7 0
3 years ago
Read 2 more answers
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