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denpristay [2]
4 years ago
10

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of $107 million. The bonds mature

on December 31, 2048. Interest is payable annually on each December 31, beginning in 2019. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 7%. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.)
Business
1 answer:
lbvjy [14]4 years ago
8 0

Answer:

$93,725,580.00

Explanation:

The market price of the bond is the present value of annual coupon payment  plus the present value of face amount receivable at the end of the bond tenure.

Annual coupon interest=face amount*stated rate=$107,000,000*6%=$6,420,000.00  

Face amount=$107,000,000

The discount factor for annual coupon is the present of 30 years annuity(2048-2018) at 7% market rate, which is  12.4090  

The discount factor for the face value is  0.1314  

Price of the bond=($6,420,000.00*12.4090)+($107,000,000*0.1314)=$93,725,580.00  

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elena-s [515]

Answer:

The statement is: True.

Explanation:

A data custodian is responsible for storing and give proper use to specific types of information. This character appears at the governance level of safe-keeping data. Typically, the information the custodian guards is related to businesses and general IT (Information Technology).

6 0
4 years ago
Assume that we use a perpetual inventory system and that five identical units are purchased at the following dates and costs: Ap
quester [9]

Answer:

Cost of goods sold on April 25 is $13.80 and the inventory balance is $55.20

Explanation:

Data given:total unit

Cost of purchase with  data;

Date                  Amount

April 5                 $10

April 10                $12

April 15                $14

April 20                 $16

April 22                 $17

Total cost             69    

Average cost = total cost /total quantity

                       = 69/5

                       =13.8

The cost of the ending inventory is given on the balance sheet below

Date      Purchases              Cost of            Inventory Bal.   Avg Cost

                                            goods sold

April 5   $10* 1 unit= $10                -                        $10               10/1 = $10

April  10  $12* 1 unit=$12               -               10+ 12 = 22            22/2 = 11

April  15   $14* 1 unit=$14                  -           22+14 =36              36/3 = 12

April 20   $16* 1 unit= $16                  -          36 +16 =52            52/4 = 13

April 22    $17* 1 unit = $17                 -          52+17 =69            69/5 = 13.8

April 25             -           1 unit*13.8 = 13.80      69 - 13.8 = 55.20

5 0
4 years ago
why might a mutual fund be a better investment than individual stock and bonds a mutual fund guarantees dividends be stocks are
borishaifa [10]

Answer:

The correct answer would be option C, The risk is diversified with a mutual Fund.

Explanation:

Mutual funds is a pool of funds from different people. This pool of fund is invested in different securities. These securities can be stocks, bonds, treasury bills, etc. In this way the risk is diversified. When you invest money with the money of other people, the pool of money or funds will minimize the risk associated with investing a single person's money in any security. Secondly, the mutual funds are managed by professionals who are expert in the field of managing funds. They better know when and how much funds to liquidate and at what time.

7 0
3 years ago
A retirement account in which investments are not tax-deferred but can be
Nataly_w [17]

Answer:

I think it's B. Roth IRA.

8 0
3 years ago
Read 2 more answers
The balance in Santee Company's Cash account on May 31 was $3,492.50 before the bank re conciliation statement was prepared, Aft
NISA [10]

Answer:

$3,561.25

Explanation:

Statement showing computations  

Particulars                                           Amount

Cash balance per books              3,492.50

Service Charges                               (6.25)

Note Collected by Bank              450.00

NSF Check from Customer               (375.00)

Adjusted amount of Cash               3,561.25

Therefore, The adjusted amount of Cash that should be reported for May 31 is $3,561.25

8 0
4 years ago
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