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mina [271]
3 years ago
14

On January 1, 2017, Whitefeather Industries issued 300, $1,000 face value bonds. The bonds have a five-year life and pay interes

t at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%. Calculate the amount of interest that occured on December 31, 2017.
Business
1 answer:
Ludmilka [50]3 years ago
4 0

Answer:

$15000

Explanation:

All types of bonds have some common characteristics which include;

- A face/par value

- A coupon rate (interest rate).

- Either redeemable/irredeemable or convertible.

The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).

The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.

In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).

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A newspaper report states the following: "On March 2, Bastiaan Vanacker was arrested for indecent exposure"; However, what reall
musickatia [10]

Answer:

a. Bastiaan Vanacker wins a libel suit , Sebastian Van Akker loses.

Explanation:

Libel is where a defamatory statement has been published and that statement is false, this will result in the person able to claim libel charges.

This means that if information about someone is publicised (specially a private figure) for any criminal act and which could lead to damage that person's reputation seriously without any proper evidence or even false evidence then this would become ground for a libel case.

Such as in this case where a journalist reported that Bastiaan Vanacker was arrested for indecent exposure even though this was not really the case. As confirmed through the police report which the journalist had misread. This libel suit filed by Bastiaan Vanacker would be won, as his reputation has been damaged to the falsely alleged report published in the newspaper.

However, in the case of Sebastian Van Akker, who had actually committed the crime and no information was mentioned about him in the newspaper, will lose the libel suit filed. This is due to the fact that he was not defamed for any act which he himself had not conducted.

5 0
3 years ago
Investors require an 8% rate of return on Mather Company’s stock (i.e., rs 5 8%). a. What is its value if the previous dividend
frutty [35]

Answer:

1. 12.25

2. 15.625

3. 25.75

4. 43.75

Explanation:

Po = Do (1 + g) /( Ke - g)

(1) Po = Do (1 + g) /(Ke - g)

Where = Ke = 8% , g= -2%

Po = 1.25(1 - 2%) / ( 8% + 2%)

= 1.225 / 10%

= $12.25

(2). Po =  Do (1 + g) /( Ke - g)

Where = Ke = 8% , g= 0%

Po = 1.25(1 + 0) / ( 8% - 0)

= 1.25 / 8%

= $15.625

(3). Po =  Do (1 + g) /( Ke - g)

Where = Ke = 8% , g= 3%

Po = 1.25 (1 + 3%) / (8% - 3%)

= 1.2875 / 5%

= $25.75

(4) Po =  Do (1 + g) /( Ke - g)

Where = Ke = 8% , g= 5%

Po = 1.25 ( 1 + 5%) / (8% - 5%)

= 1.3125 / 3%

= $43.75

3 0
3 years ago
A neighborhood recreation program serves a total of 280 children who are either 11 years old or 12 years old. the sum of the chi
Morgarella [4.7K]
<span>The total number of students = 280
  Sum of ages of children = 3238
   Let the number of children of ages 11 year old = x
   and the number of children of ages 12 year old = y
   Equation 1. x+y=280
   Equation 2. 11x + 12y = 3238
   From Equation1. y= 280-x
 Now, put the value of Y in equation 2 which gives 11x+12(280-x) = 3238
from this, 11x + 3360-12x = 3238
 x = 3360-3238
 x = 122 = children of age 11 years.
   putting value of x in equation 1,
 122+y = 280
 y = 280-122
 y =158 = children of age 12 years
   Answer. children of age 11 years =122</span>
3 0
3 years ago
Read 2 more answers
Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850. Global Company
kherson [118]

Answer:

C. credit to Customer Refunds Payable, $900  

Explanation:

Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850.

Global Company refunded Montana Industries $900 for returned merchandise. The cost of merchandise sold was $600.

The entry that will be recorded by Global Company in the journal entry for the refund from the sale a credit to Customer Refunds Payable, $900  

<u>This amount of $900 will eventually be netted off against the accounts receivable amount for the total sales of $3,450, reducing the amount payable by the customer to $2550</u>

3 0
3 years ago
The greatest amount of foreign exchange trading takes place in the following three cities:
irina1246 [14]

Answer:

The correct answer is letter "A": New York, London, and Tokyo.

Explanation:

New York City is still considered the world center for <em>foreign exchange</em> (forex) trading only followed by London and Tokyo. The main currencies being traded are the <em>U.S. dollar (USD), Euro (EUR) </em>and <em>the Japanese yen (JPY)</em>. Some analysts believe soon the <em>Chinese renminbi (CNY)</em> will take an important place among the previously mentioned three currencies.

8 0
3 years ago
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