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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.

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Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What
Anarel [89]

Answer:

Total $1,091.0030

Explanation:

The market value of the bond will be the sum of the present value of the cuopon payment and the maturity date:

present alue of cuopon payment will be calculate as present value of an ordinary annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 42.25   (1,000 face value x 8.45% /2 payment per year)

time 21 (10 years at 2 payment per year+ 1 payment)

rate 0.036   (here we use the YTM rate /2 because there are 2 payment per year)

42.25 \times \frac{1-(1+0.036)^{-21} }{0.036} = PV\\

PV $615.1803

<u>Then, for the present value at maturity, we calculate the present value of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   21.00

rate  0.036

\frac{1000}{(1 + 0.036)^{21} } = PV  

PV   475.82

<u>Finally, we add them both together</u>

PV c $615.1803

PV m  $475.8227

Total $1,091.0030

8 0
4 years ago
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Stand
Olin [163]

Answer:

$18,000 F

Explanation:

Actual overhead– Overhead Budgeted=

Overhead Controllable Variance

Actual overhead=$194,000

Overhead Budgeted=$212,000

$194,000–$212,000

=$18,000 F

(40,000 ×$3.80) + $60,000

=$152,000+$60,000

= $212,000

Therefore the manufacturing overhead controllable variance is $18,000 F

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According to the U.S. Department of Labor Statistics, _____ is the industry earning the highest average annual wage in 2009.
Alchen [17]

Answer:

B. federal government

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In the second half of 2019, automobile sales in the United States were lower than they were in the second half of 2018. The decrease in auto sales impacts GDP because new automobiles are counted as <u>consumption </u>when purchased by households and <u>investment</u> when purchased by businesses.

Gross domestic product (GDP) is the overall monetary or market value of all of the goods and services produced within a country's borders in a particular time period.

GDP can be calculated by adding up all of the money spent by consumers, businesses, and the government in a given period. It may also be calculated by adding up all of the money received by all the participants in the economy.

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3 0
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Which of the following questions would be permissible to ask during an interview with a candidate who is in a wheelchair?
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A

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