1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lera25 [3.4K]
3 years ago
5

Suppose a $1,000 bond pays $40 per year in interest. Instructions: In part a, round your response to one decimal place. In part

b, round your response to two decimal places. a. What is the contractual interest rate ("coupon rate") on the bond? 4 % b. If market interest rates rise to 5 percent, what price will the bond sell for? $
Business
1 answer:
Lubov Fominskaja [6]3 years ago
5 0

Answer:

The correct answer for option (a) is 4% and for option (b) is $800.

Explanation:

According to the scenario, the computation for the given data are as follows:

Face value = $1,000

Annual interest = $40

Interest rate = 5%

(a). We can calculate the contractual interest rate by using following formula:

Contractual interest rate = Annual interest ÷ Face value

= $40 ÷ $1000

= 0.04 or 4.0%

(b). we can calculate the price of bonds by using following formula:

Price of bonds = Annual interest ÷ Market interest rate

= $40 ÷ 5%

= $800.00

You might be interested in
Progressivism dbq where will you put your million dollars answers
lyudmila [28]

The correct answer to this open question is the following.

Unfortunately, it seems that something is missing here. "Progressivism, where will you put your million dollars answers?" is the section of the examination, but it is not a specif question.

So what is what you want to know?

However, trying to offer some help, we can comment on the following.

Progressivism was the period in the history of the United States during the end of the 1800s and the beginning of the 1900s, in which many social leaders demanded changes to the consequences of the industrial era and exposed the ways fabrics and industries exploited workers and children. It also was a time when "muckraker" journalists exposed the corruption of the federal government. It was a true time of changes in America.

Those progressive leaders and their ideas made the government to create the kind of legislation to change things for the better in the country.

6 0
3 years ago
How does context influence your communication? Consider the language and culture people grew up with, and the role these play in
Lelu [443]

Answer and explanation:

<em>Language </em>and <em>culture </em>affect directly in people's communication. Somebody who grew up in the jungle surrounded by its people is likely to have an open way of communicating with others since that individual has grown up within a society that is in great part his or her family. On the other hand, someone who is raised in a metropolis is likely to be more careful while communicating with others since that person is more exposed to different people with different cultures that react differently to situations.

5 0
3 years ago
The cost object in a job order system is the ______ and the cost object in a process costing system is the ______.
nordsb [41]

Answer:

The correct word for the blank space is: specific job; process.

Explanation:

The cost object represents the cost of an object or department for which that cost is assigned. For instance, the repairs department of a dealership is a cost object of the repairs employees and the repair supplies. Cost objects are usually traceable thus are treated as direct costs for accounting purposes.

Then, <em>the cost object of a job order is the specific job assigned</em>; <em>while the cost object of a process costing system is the process </em>itself.

6 0
3 years ago
For Flynn Company, variable costs are 70% of sales, and fixed costs are $195,000. Management’s net income goal is $75,000. Compu
Nookie1986 [14]

Answer:

i would 75,345 is your answer

Explanation:

3 0
2 years ago
Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a
jonny [76]

Answer:

Cash flows from investing activities is $653,200.

Explanation:

XYZ Company

Statement of cash flows (extract)

Proceed from sale of equipment ($80,000 - $34,000)               $46,000

Purchase of vehicle                                                                       $103,000

Proceed from sale of land                                                            $410,000

Proceed from sale of long-term investments in stock                 $94,200

Cash flows from investing activities                                        $653,200

8 0
2 years ago
Other questions:
  • Dali Company has 15,000 shares of stock authorized on January 1. Dali issues 4,500 shares to the stockholders during the year an
    14·1 answer
  • Which is not something you should look for in a saving account?
    9·1 answer
  • Which of the following is true?Select one:a. Overhead costs are often affected by many issues and are frequently too complex to
    9·1 answer
  • As a company grows, it may become necessary for it to create a(n) ______, which is a visual display of the organizational struct
    11·1 answer
  • If beginning work in process is 3,900 units, ending work in process is 3,700 units, and the units accounted for equals 11,200 un
    12·1 answer
  • Once a company has located several vendors, the next step in the purchasing process is to
    8·2 answers
  • Why is compound interest preferable to simple interest when investing?
    12·1 answer
  • Merchandise sold FOB destination indicates that: Multiple Choice The seller transfers title to the buyer once the merchandise is
    6·1 answer
  • Briefly explain how the government uses taxation as a redistribution method
    15·1 answer
  • Mark is facing a crucial deadline. The work is more than he can handle in the amount of time, but he has not told his manager. H
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!