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velikii [3]
3 years ago
12

A $1,000 face value bond is currently quoted at 101.2. the bond pays semiannual payments of $28.50 each and matures in six years

. what is the coupon rate?
Business
1 answer:
goblinko [34]3 years ago
7 0
Coupon rate is the yearly interest earned by a loan and it can be calculated with

C = \frac{i}{p}

where i is the annual interest and p is the par value of the bond or the initial loan amount.

For this particular case, since the semiannual payment is $28.50, then the annual payment is 2 x 28.50 = $57.00.

Thus, we have 

C = \frac{57}{1000} = 0.057

From this, the coupon rate is 0.057 x 100% = 5.7%.
Answer: 5.7%

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kompoz [17]

Answer:

The authorized common stock shares remain 1,000,000 shares.

Explanation:

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The movements are accounted for in separate accounts called Issued Common Stock Account and Treasury Stock Account.  The treasury stock account is a contra account to the Common Stock.

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Provide a comprehensive discussion of information asymmetry in financial intermediation.
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<h3>What is information asymmetry?</h3>

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3 0
2 years ago
Budgets are normally more effective when all levels of management are involved in the budgeting process. True or False
oksano4ka [1.4K]

Answer:

The given statement is "True".

Explanation:

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  • So that the spending plan is generally more accurate unless all agencies and therefore all top executives are actively engaged.
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2 years ago
A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to
Lyrx [107]

Answer:

Performance.

Explanation:

A company wants to hire a model to appear in a television ad to promote its products. Prospective candidates have been asked to audition so that the company can choose the most suitable person. The candidates are being subjected to performance test. Prospective candidate's acting abilities, personality will be judged and analysed accordingly. They will given a written script which they have to read and acted as well. Their acting, voice quality, body movements and personalty will be looked upon and analysed whether he or she is the best fit for their television ad or not.

8 0
2 years ago
Cullumber Company uses the percentage-of-receivables basis to record bad debt expense. Accounts receivable (ending balance) $605
Lana71 [14]

Answer:

a. Journal entry

b. $18,150

c. $586,850

Explanation:

a. The adjusting journal entry is as follows

Bad debt expense A/c Dr

  To Allowance for doubtful debts

(Being bad debt expense is recorded)\

The computation of the bad debt expense is shown below:

= Account receivable × estimated percentage given  + debit balance of allowance for uncollectible accounts

= $605,000 × 3% + $4,700

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= $605,0000 - $18,150

= $586,850

8 0
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