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konstantin123 [22]
3 years ago
8

Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year

maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments. Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 7%. At what price would the bonds sell? Round your answer to the nearest cent. $
Business
1 answer:
g100num [7]3 years ago
6 0

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

<u>The coupon payment will be calcualte as the PV of ordinary annuity</u>

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time    16 (8 years x 2 payment per year)

rate     0.035 (7% rate / 2 payment per year)

50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\

PV $604.7058

<u>The maturity will be calculate as the PV of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  1,000.00

time         8 years

rate  0.07

\frac{1000}{(1 + 0.07)^{8} } = PV  

PV   582.01

<u>The market price will be the sum of both:</u>

PV cuopon $604.7058

PV maturity  $582.0091

Total $1,186.7149

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Vinny is unmarried and provides more than half the support for his cousin Gambini, who lives in Vinny's home for the entire year
anzhelika [568]

Answer:

a. True

Explanation:

Since Vinny is unmarried also it provides more than the half of the support for his cousin whose name is Gambini and she is doing part time job and made three thousand dollars in a year

So vinny would qualify the household head for flining the status

Therefore the given statement is true

hence, it is not false

4 0
3 years ago
Automation has improved the quality and efficiency of repetitive tasks. True or False
denis-greek [22]

Answer:True

Explanation:

8 0
3 years ago
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A change from straight-line depreciation to double-declining-balance depreciation would be reported as__________.
sertanlavr [38]

A change from straight-line depreciation to double-declining-balance depreciation would be reported as a restatement of the prior period statements only.

The term depreciation refers to an accounting technique used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of an asset's value has been used. It allows companies to generate income from the assets they own by making payments over a period of time.

Depreciation expense is apportioned to charge a reasonable portion of the depreciation amount for each accounting period over the expected useful life of the asset. Depreciation includes the depreciation of assets with a predetermined useful life.

Learn more about depreciation here:brainly.com/question/1203926

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8 0
2 years ago
Identify the financial statement​ (or statements) that each account would appear on. Use I for Income​ Statement, RE for Stateme
Katen [24]

Answer:

a. Accounts Payable: B

b. Cash: B

c. Common stock: B.

d. Account Receivables: B

e. Rent expenses: I

f. Service revenue: I

g. Office supplies: B

h. Dividends: RE

i. Land: B

j. Salaries Expenses: I

Explanation:

a. Accounts Payable: I

It is recorded in the Liability part to showed amount owed to suppliers.

b. Cash: B

It is recorded in the Current Asset part to show amount of cash on hand and in bank.

c. Common stock: B

It is recorded in the Owner Equity part to show Owner's capital contribution

d. Account Receivables: B

It is recorded in the Asset part to show amount owed from customers.

e. Rent expenses: I

It is recorded in the expenses part of income statement.

f. Service revenue: I

It is recorded in the revenue part of income statement.

g. Office supplies: B

It is recorded in the current asset part of the Balance Sheet statement to show how much office supplies is not consumed/ fully consumed.

h. Dividends: RE

It is recorded in the Statement of Retained Earnings to show dividend paid out in the reporting period.

i. Land: B

It is recorded in the Non-current Asset part of the balance sheet to show Book value of land possession.

j. Salaries Expenses: I

It is recorded in the expenses part of income statement.

5 0
4 years ago
Influenza occurs on an annual basis in the United States, with case counts generally peaking during the colder months of the yea
astra-53 [7]

Answer:

Explanation:

Given information is ,

Total influenza case count in the US was 9000000.

Total Population of US is 300000000.

Total number of deaths in the US from all causes =D = 3000000

The number of deaths from as specific virus = The number of death by influenza virus = A =45000.

We have to find the proportional mortality ratio for influenza in 2011.

Formula :

Proportional Mortality Ratio = (Number of deaths from Influenza virus) * 100 / ( Total number of deaths in the Population )

That is ,

Proportional Mortality Ratio =  A/D×100

Now plugging the values = ( 45000 ) × 100 / 3000000

=4500000 / 3000000

= 1.5 %

Out of 100 people death from all causes there is 15 people who died from the influenza virus.

3 0
3 years ago
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