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Kay [80]
3 years ago
11

Megan buys a bond that is redeemable for its par value of 20,000 after 5 years. The bond pays coupons of 800 annually. The bond

is bought to yield 8% annually. Calculate the accumulation of discount (principal) in the 4th coupon.
Business
1 answer:
vivado [14]3 years ago
3 0

Answer:

685.87.

Explanation:

Yield (Y) = 8%

Number of periods (n) = 5 years

Par value of the bonds (FV) = 20,000

Coupon Payment (PMT) = 800

Required: accumulation of discount in 4th coupon

The amount of discount in 4th coupon would be equal to the difference between value of bond at the end of 3rd coupon payment and value of bond at the end of 4th coupon payment.

Value of bond at the end of 3rd coupon payment can be calculated using financial calculator as below:

Input. Output

Y 0.08

n. 2

PMT -800

FV -20000

PV. 18573.39

Value of bond at the end of 4th coupon payment can be calculated using financial calculator as below:

Input Output

Y. 0.08

NPER. 1

PMT. -800

FV. -20000

PV. 19259.26

Thus, amount of discount accumulated in 4th coupon payment = 19,259.26 – 18,573.39 = 685.87.

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Answer:

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For each of the following​ accounts, identify whether that item is an​ asset, liability, or equity account. Account Classificati
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Answer:

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Explanation:

All the assets account is debit in nature, so the equipment, cash, account receivable and Inventory accounts are debit in nature and these are classified as asset.

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8 0
3 years ago
The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales J
Mice21 [21]

<u>TC</u> Units

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} $30,700 } 2000

$33,800( Low) 470

<u>VC</u><u> </u><u>per</u><u> </u><u>Unit</u><u> </u><u>=</u><u> </u><u> </u> 30 700 ÷ 2000 = $15.35

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4 0
3 years ago
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Answer:

A. Consider all indirect manufacturing costs

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A) Manufacturing overhead.

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B) Product costs.

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5 0
3 years ago
Read 2 more answers
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