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tigry1 [53]
3 years ago
8

You decide to invest in a bond with a 10% coupon paid semi-annually every February 1st and August 1st. The bond is currently sel

ling at an asking price of 101.25. What price should you pay for this bond today (if today's date is May 1st)? $1,012 $1,037.50 $1,012.50 $1,037
Business
1 answer:
Ksenya-84 [330]3 years ago
3 0

The question is missing an important information. 'The bond is currently selling at an asking price of 101.25' In this part there should have been a date at which date the bond was selling at 101.25.

Nevertheless, I will provide with the calculation, if you find out the date, just plug in the value in it and you will get the answer.

The bond price mentioned is $ 101.25 percent of par, which would be $ 1012.5. Since, it is asking for price at May 1st then you know that it has been 89 days since the last semi-annual coupon was paid ( February 1st (28) + March (31) + April (30)  = 89 days.

The missing date (from the question) will be divided by 89 days. The answer will be added to $1012.5.

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I guess the correct answer is the color of the decorations in the room

A group of researchers wanted to determine if people will eat more food in a room with red paint and red decorations than in a room that is decorated blue. Half the participants in this study ate in a red room and half ate in a blue room. The researchers then measured how much food was consumed in each of the two rooms. In this study, the independent variable was  the color of the decorations in the room.

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3 years ago
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8 0
3 years ago
You sold ten put contracts on Cross Town Bank stock at an option price per share of $0.85. The options have an exercise price of
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Answer:

-$4,150

Explanation:

Calculation to determine your net profit or loss on this investment

Using this formula

Net profit/Loss=(Option price per share-Exercise price+Stock price)×100×10

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Net loss = ($0.85 - $39 + $34) × 100 × 10

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8 0
3 years ago
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iren [92.7K]

Answer:

a) Assets will be overstated

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Annual repairs costs are operating expenses that should be debited to the repair and maintenance account. The amount should increase the repair and maintenance account and, consequently, expenses for that period.

If the repair expenses are debited to the asset account, assets increase in value. Since the repair costs are wrongfully posted,  the assets will be overstated. On the other hand, expenses will be understated

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4 0
2 years ago
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