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allsm [11]
3 years ago
14

On January 1, Year 1, Weller Company issued bonds with a $260,000 face value, a stated rate of interest of 10.00%, and a 10-year

term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.00%. Interest is paid annually on December 31. Assuming Weller issued the bonds for $280,640, what is the carrying value of the bonds on the December 31, Year 3?
Business
1 answer:
Luden [163]3 years ago
3 0

Answer:

The carrying value of the loan in year 3 is $269,119.18

Explanation:

The carrying of the bond in year 3 comprises the loan opening book value in year 3 plus interest calculated on the opening balance using the yield to maturity less the  coupon payment calculated as a percentage of face value as computed in the attached excel file.

You would notice that the carrying values in years 1, 2 and 3 are $277,091.20,$273,258.50  and $269,119.18

Kindly find attached.

Download xlsx
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Anna35 [415]

Answer:

correct answer is   b) $2.00

Explanation:

we know here

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so EUP material for 100 % = 18000

and

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so EUP material for 100 % = 3000

so total EUP material = 18000 + 3000 = 21000

and

Unit cost is here = \frac{42000}{21000}

Unit cost =  2 per unit

so correct answer is   b) $2.00

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sergeinik [125]
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6 0
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Answer:

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All workings are made in an MS Excel File, which is attached with this answer Please find it.

Download xlsx
5 0
3 years ago
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storchak [24]

David's decision on the electronics to purchase represents opportunity cost.

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Ana's decision on how to use her time involves opportunity cost.

<h3>What is opportunity cost?</h3>

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To learn more about opportunity cost, please check: brainly.com/question/26315727

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