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Ket [755]
3 years ago
9

"New York City is issuing $500,000,000 of general obligation bonds paying interest on January 1st and July 1st of each year unti

l maturity. The dated date of the issue is May 1, 2020. The first payment will be made on January 1st, 2021. A bondholder purchases the issue at the offering. How many months of interest will the first and second payments cover?"
Business
1 answer:
poizon [28]3 years ago
8 0

Answer:

  • 8 months for the first interest
  • 6 months for the second

Explanation:

The interest is to be paid semi-annually which means that it accrues for 6 months. However, the bond was issued on May 1, 2020 which is 8 months before the first interest payment on January 1, 2021 so the January payment will have to cover for those months as interest starts to build immediately the bond is purchased.

The second payment on July 1, 2021 will cover the period of 6 months between January 1 and July 1, 2021.

You might be interested in
The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 454 pounds of cheese per day (355 days pe
timurjin [86]

Answer:

$245,277

Explanation:

The dairy makes 454 pounds per day of which only 62 pounds is sold, thus the extra pounds of cheese per day are (454-62) = 392.

Now, the dairy operated 355 days a year, hence the annual cost of storage is,

(355 * 392) * $1.01 => $140,552.

Now the setup cost is $295 a day, so the annual would be,

(295 * 355) => $104,725.

Hence the minimum total annual costs will be = 140552+104725 = $245,277.

Hope I made myself clear.

Thanks

8 0
3 years ago
Although the Fed has very strong influence over the money supply, it does not have complete control a.Because the Fed has no ide
lorasvet [3.4K]

Answer: b. Because of unpredictable changes in the public's desire to hold cash or borrow and banks' desires to hold reserves or lend.

Explanation:

The Fed is able to embark on monetary policy that influences the entire country - and the world to some extent - because they have very strong influence over the money supply of the US$.

This influence is not absolute however because as the old adage goes, "you can lead a horse to water but you can't make him drink". In other words, the Fed can relax(impose) restrictions to make money more(less) available but they cannot force people to borrow(hold) that money.

They can't force banks either to either hold reserves or lend money out because banks are free to impose their own reserve limits on top of those of the Fed.

7 0
3 years ago
On January 2, 2017, Jones Company purchases a call option for $300 on Merchant common stock. The call option gives Jones the opt
Vikentia [17]

Answer and Explanation:

The journal entries and the impact on the net income is as follows:

1  Call option   $300  

           To Cash  $300

(To record the purchase of the call option

2 Unrealized gain or loss -income $100  ($300 - $100)

           To Call option $100

Call option $3000 ( ($53 - $50) × 1000) $3,000

       To Unrealized gain or loss- income $3000

(Being the change in fair value is recorded)  

3. The impact would be

Unrealized holding gain is

= $3,000 - $100

=$2,900  

5 0
3 years ago
How does information provided by the government influence consumer decisions? consumers prevent companies from selling products
shtirl [24]
<span>Government can definitely influence the consumer decisions by giving out certain information. So the consumers do not buy the products that are revealed to be dangerous. Sometimes this government involvement in the company business may affect the consumers like if the government takes some of the company's profit, the companies will charge higher for the consumers.</span>
8 0
3 years ago
Read 2 more answers
Define liquidity economics.​
Delvig [45]

Explanation:

means how quickly you can get your hands on your cash. In simpler terms, liquidity is to get your money whenever you need it.

7 0
3 years ago
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