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Bas_tet [7]
3 years ago
11

Mark Crane purchased a $1,000 corporate bond five years ago for $1,055. The bond paid 7.0 percent annual interest. Five years la

ter, he sold the bond for $980. Calculate the total return for Mr. Crane’s bond investment. (Do not round intermediate calculations.)
Business
1 answer:
lys-0071 [83]3 years ago
6 0

Answer:

Mr Crane's total return on the bond investment was 5.35%

Explanation:

The return on a bond is also known as it yield to maturity (YTM). In order to find a bonds YTM we need to know its present value, future value, coupon payments and number of years. In this case the bond's present value is 1,055 because it was bought at this price, it's future value is 980 because it was sold for 980, its number of years was 5 as it was held for 5 years and its coupon payment was  (0.07*1000)=70. Now in order to compute return or ytm we need to put all these values in a financial calculator and compute I

PV= -1055

FV= 980

PMT= 70

N=5

Compute I=5.35

The return on the bond investment was 5.35%

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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
2 years ago
Alex sees that his neighbors' lawns all need mowing. He offers to provide the service in exchange for a wage of $20 per hour. So
soldier1979 [14.2K]

Answer:

The answer is A) Rational self-interest because he is attempting to increase his own income by identifying and satisfying someone else's wants.

Explanation:

Traditional economic theory is based on three fundamentals, the first one being we are all rational consumers or suppliers.

Alex is trying to earn some money, completely rational and intelligent. He is able to do it by satisfying his neighbors´ need for lawn mowing.

Is he greedy? Probably yes, but he is still rational. No one is forced to pay his fee, so his also rational neighbors will decide if the price is correct or not. Those who believe the price is correct will hire him. If someone believes his is charging too much and that they can offer the same service for a lesser price,  should show up and offer their cheaper services.

Can people who buy a 25 million dollar car be considered irrational? No they can´t, because for them is probably an investment or they simply have  tons of money and like extremely expensive cars. What one person considers expensive may be considered cheap by someone else.

7 0
2 years ago
A decrease in demand for cameras would likely be caused by
nignag [31]
A decrease in demand for cameras would likely be caused by increased abilities in cell phones for filming
3 0
3 years ago
Making a complaint to the FTC about a business is a long, complex process.
Blababa [14]

Answer:

B false

Explanation:

4 0
3 years ago
Read 2 more answers
Brent is a full-time exempt employee in Clark County, Indiana. He earns an annual salary of $39,360 and is paid semimonthly. He
serious [3.7K]

Answer:

  • Federal Income tax ⇒ $80
  • FICA ⇒ $125.46
  • State income tax ⇒ $52.97
  • Local deduction - Clark County Income tax ⇒ $29.52

Explanation:

Brent gets paid semi-monthly so his pay per period is:

= 39,360 / (12 months *2)

= $1,640

Based on the table therefore, his federal tax is:

= $80

This figure is based on the intersection between income of $1,640 and 3 withholding allowances.

FICA tax rate is 7.65% so his FICA tax is:

= 1,640 * 7.65%

= $125.46

State income tax = $52.97

Local deduction - Clark County Income tax = $29.52

Total deductions:

= Federal tax + FICA + State income tax + Clark County income tax

= 80 + 125.46 + 52.97 + 29.52

= $287.95

3 0
3 years ago
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