How would you convince somebody your mature? Describe in complete sentences

Bond X and bond Y both are issued by the same company. Each of the bonds has a maturity value of $100,000 and each matures in 10

Alex17521 [72]

Answer:

d. Bond Y sells for more than bond X

Here is the question in proper order:

Bond X and bond Y both are issued by the same company. Each of the bonds has a maturity value of $100,000 and each matures in 10 years. Bond X pays 8% interest while bond Y pays 9% interest. The current market rate of interest is 8%. Which of the following is correct?

a. Bond X sells for more than bond Y.

b. Both bonds sell at a discount.

c. Both bonds sell for the same amount.

d. Bond Y sells for more than bond X

Explanation:

Bond price is calculated using the relation

$Bond Price = C * \frac{[1 - \frac{1}{(1 + r)^{2} } ]}{[r + \frac{M}{(1+r)^{2} } ]}$

where

C = coupon amount

r = current market rate of interest

n = no of years

M = face value (amount)

Now for bond X

C = $100,000 x 8% = $8,000

r = 8% or 0.08

n = 10 years

M = face value

substituting in the equation

$Bond price = 8000 * \frac{[1 - \frac{1}{(1+0.08)^{10} } ]}{[0.08 + \frac{100000}{(1+0.08)^{10} } ]}$

=8,000 x [1-{1/(1.08)10/0.08 +100,000/(1.08)10

=8,000 x [1-{1/2.158925]0.08 +100,000/2.158925

=8,000 x [1-0.463193]0.08 + 46,319.35

=8,000 x [0.5368065]0.08 +46,319.35

=8,000 x 6.7100814 +46,319.35

= 53,680.65 +46,319.35

=$100,000

Bond price = $100,000

For bond Y

only C is different and C = $9000

$Bond price = 9000 * \frac{[1 - \frac{1}{(1+0.08)^{10} } ]}{[0.08 + \frac{100000}{(1+0.08)^{10} } ]}$

= 9,000 x [1-{1/(1+0.08)10}]/0.08 + 100,000/(1+0.08)10

=9,000 x [1-{1/(1.08)10/0.08 +100,000/(1.08)10

=9,000 x [1-{1/2.158925]0.08 +100,000/2.158925

=9,000 x [1-0.463193]0.08 + 46,319.35

=9,000 x [0.5368065]0.08 +46,319.35

=9,000 x 6.7100814 +46,319.35

= 60,390.73 +46,319.35

=$ 106,710.08

3 0

3 years ago

True or False: Japan generally runs a significant trade surplus because of low Japanese demand for foreign goods.

mihalych1998 [28]

Answer:

False

Explanation:

Among the various reasons, Japan is a high country saving rate relative to investment that cause a significant trade surplus. A higher saving rate generally corresponds to trade surplus. Japan socio-political and economical conditions reveals that people have a high propensity to save. Many reason like high life expectancy rate, underdeveloped social security and tax incentives for income from capital and frequent environmental hazards attributed to the high rate of saving in Japan.

With the high rate of savings relative to domestic investment, Japan invest more funds in other countries(net capital outflow increases). This is matched with high net exports leading to a trade surplus.

4 0

3 years ago

Type the correct answer in the box. Spell all words correctly. Who plans, codes, and creates web pages? plan, code, and create w

Yuliya22 [10]

Answer:

Web Developer

Explanation:

Usually, it is a team of experienced individuals that come together to come up with a web page design and make it a reality. This includes designing, planning, coding, and implementing. Usually, these individuals have a general job title of Web Developer. Within this job title, the individuals are usually split up into different subcategories that focus on specific aspects such as Front-End Web designer, Back-End developer, Web Server Management, etc. Each of these focuses on a specific aspect of the webpage, usually due to having more experience with that part of the development process.

3 0

3 years ago

Refer to Exhibit 9.7, which shows the cost and revenue curves for a monopolist. If the monopolist does not price discriminate am

Andrew [12]

Answer:

$11000

Explanation:

8 0

3 years ago

July 1 Purchased merchandise from Boden Company for $6, 800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated

Elena L [17]

Answer:

July 1 Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.

Dr Merchandise inventory 6,800

Cr Accounts payable 6,800

July 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost S567.

Dr Accounts receivable 1,000

Cr Sales revenue 1,000

Dr Cost of goods sold 567

Cr Merchandise inventory 567

July 3 Paid $115 cash for freight charges on the purchase of July 1.

Dr Merchandise inventory 115

Cr Cash 115

July 8 Sold merchandise that had cost $2,100 for $2,500 cash.

Dr Cash 2,500

Cr Sales revenue 2,500

Dr Cost of goods sold 2,100

Cr Merchandise inventory 2,100

July 9 Purchased merchandise from Light Co. for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

Dr Merchandise inventory 2,700

Cr Accounts payable 2,700

July 11 Received a $700 credit memorandum from Light Co. for the return of part of the merchandise purchased on July 9.

Dr Accounts payable 700

Cr Merchandise inventory 700

July 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.

Dr Cash 980

Dr Sales discounts 20

Cr Accounts receivable 1,000

July 16 Paid the balance due to Boden Company within the discount period.

Dr Accounts payable 6,800

Cr Cash 6,664

Cr Purchase discounts 136

July 19 Sold merchandise that cost $1,000 to Art Co. for $1, 500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

Dr Accounts receivable 1,500

Cr Sales revenue 1,500

Dr Cost of goods sold 1,000

Cr Merchandise inventory 1,000

July 21 Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.

Dr Sales returns and allowances 250

Cr Accounts receivable 250

July 24 Paid Leight Co. the balance due after deducting the discount.

Dr Accounts payable 2,000

Cr Cash 1,960

Cr Purchase discounts 40

July 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.

Dr Cash 1,225

Dr Sales discounts 25

Cr Accounts receivable 1,250

July 31 Sold merchandise that cost $5, 600 to Creek Co. for $7, 500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Dr Accounts receivable 7,500

Cr Sales revenue 7,500

Dr Cost of goods sold 5,600

Cr Merchandise inventory 5,6000

7 0

4 years ago