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
Natali5045456 [20]
3 years ago
15

At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $30,000 with a yie

ld to maturity of 6 percent. Given that she will not actually receive any interest payments until the bond matures in 10 years, how much interest income will she report this year assuming semiannual compounding of interest?
Business
2 answers:
lisabon 2012 [21]3 years ago
4 0

Answer:

She will report an interest income of $1,827 for this year.

Explanation:

The yield to maturity is 6%. However, the interest on the bond is compounded semi-annually. Therefore, we need to calculate the interest income for either semi-annual period and then sum the two incomes.  

Interest income for first semi-annual period

= $30,000 x 0.06 x 6/12

= $900

Interest income for second semi-annual period

= ($30,000 + $900) x 0.06 x 6/12

= $30,900 x 0.06 x 6/12

= $927

Interest income for the year

= $900 + $927

= $ 1,827

Shtirlitz [24]3 years ago
3 0

Answer:

The interest that would be reported this year is $1827

Explanation:

The interest on loan for the first six months is calculated thus:

$30000*6%*6months/12months=$900

Thereafter, the next six month interest would be based on the initial investment and the interest earned in the first six months since the interest is compounded interest.In other words, interest is paid on initial investment and also on the interest earned by the initial investment

($30000+$900)*6%*6months/12months=$927

The total interest earned the investment in the first year is $900+$927=$1827

You might be interested in
True or false: a database transaction is recorded only when a change is written to a database.
Alina [70]
That statement is false
Some of the database transaction could be recorded as soon as the transaction happen. Some companies may adopt different financial recording policy for their operation. It's not rare to see a company that will acknowledge transaction as soon as it happen so they could create a more accurate view about their company's financial position.
4 0
3 years ago
Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. Wha
Mekhanik [1.2K]

Answer:

$345,103 Is the answer I'm not good at explaining things so I won't attempt it.

5 0
2 years ago
What is the moral hazard​ problem?a. The problem that managers of a financial firm will take on riskier investments because they
s344n2d4d5 [400]

Moral Hazard occurs when a person increases its exposure to risk because someone else bears the the cost of those risk(Insurance companies)

Explanation:

Moral Hazard usually occurs when their is information asymmetry,the risk taking party has more information than the risk incurring party.

The financial crisis of 2008 is the best example of the Moral Hazard Problem.

The Moral Hazard Problem arises because the managers of the financial firm took over riskier investments because they believed that  the federal government will save them from the bankruptcy.

3 0
3 years ago
The measurement of how efficiently and effectively a manager uses resources to satisfy customers and achieve organizational goal
Elodia [21]

Answer:

Effectiveness

Explanation:

Organizational effectiveness shows the extent to which resources have been efficiently managed to produce intended results.

Efficiency has to do with maximal uses of resources available (i.e  input versus output) while effectiveness show whether desirable outcomes have been achieved i.e whether organizational objectives are being achieved.

4 0
3 years ago
Valley markets has an inventory turnover of 3.2 and a capital intensity ratio of 1.9. what are the days in inventory for valley
Aleonysh [2.5K]

The days in inventory for valley markets is 114

<h3>How to calculate the days in inventory for valley markets ?</h3>

Valley markets has an inventory turnover of 3.2

The capital intensity ratio is 1.9

There are 365 days in a year, the days in inventory for valley markets can be calculated as follows

= 366/3.2

= 114

Hence the days in inventory for valley markets is 114

Read more on inventory here

brainly.com/question/13671307?referrer=searchResults

#SPJ1

6 0
1 year ago
Other questions:
  • When comparing and weighing alternatives during ethical decision-making in business, we should focus on the firm and its stakeho
    15·1 answer
  • Which of the following will not be a consequence of an import tariff?
    11·1 answer
  • Suppose a state passes a minimum wage law that increases the minimum wage from $5/hour to $20/hour. The equilibrium wage prior t
    10·1 answer
  • Iron Works International is considering a project that will produce annual cash flows of $38,200, $46,900, $57,600, and $23,100
    6·1 answer
  • A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i
    5·1 answer
  • Suppose an economy is initially in a steady state with capital per worker below the Golden Rule level.
    12·1 answer
  • Find the after-tax return to a corporation that buys a share of preferred stock at $40, sells it at year-end at $40, and receive
    8·1 answer
  • During the Asian financial crisis, the leading financial powers seemingly either declined to take part in the rescue operations,
    10·1 answer
  • Hi! I need help with this
    13·1 answer
  • You have a handyman services business. You have the following financial information for the month. Initial cash balance: $1,500
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!