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zhannawk [14.2K]
3 years ago
9

A 10-year German government bond (bund) has a face value of €100 and a coupon rate of 5% paid annually. Assume that the interest

rate (in euros) is equal to 6% per year. What is the bond’s PV?

Business
1 answer:
cestrela7 [59]3 years ago
8 0

Answer:

€92.64

Explanation:

The present value i.e PV formula is used that is shown in the attached spreadsheet  

The NPER reflects the time period.

Given that,  

Future value = €100

Rate of interest = 6%

NPER = 10 years

PMT = €100 × 5% = €5

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be €92.64

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Pharoah Company reported net income of $184,850 for 2017. Pharoah Company also reported depreciation expense of $33,700 and a lo
Dominik [7]

Answer:

$219,700

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $184,850

Adjustment made:

Add : Depreciation expense $33,700

Add: Loss on the  disposal of plant assets $4,690

Less: Increase in accounts receivable -$15,150

Add: Increase in accounts payable $15,640

Less: Increase in prepaid expenses -$4,030

Total of Adjustments $34,850

Net Cash flow from Operating activities                $219,700

4 0
3 years ago
A company had a beginning balance in retained earnings of $44,800. It had net income of $7,800 and declared and paid cash divide
Olenka [21]

Answer:

$46,525

Explanation:

Formula for ending retained earnings is as follows;

<em>Ending retained earnings = Beginning retained earnings + Net income -  cash dividend</em>

Beg. RE = 44,800

Net income = 7,800

Cash dividends = 6,075

Plug in the values to the above formula;

Ending retained earnings = 44,800 + 7,800 - 6.075

Ending RE  balance would be = $46,525

7 0
3 years ago
What is the name of the legal documents that specify arrangements between partners?
mash [69]

Answer:

C. Partnership Agreement

Explanation:

It's the legal document that dictates the way a business is run and details the relationship between each partner.

3 0
2 years ago
Prepaid expenses are
sergiy2304 [10]

Answer:

The correct answer is letter "A": paid and recorded in an asset account before they are used or consumed.

Explanation:

A Prepaid Expense is an asset on the Balance Sheet. These expenses are paid in advance in full for goods that have not been received yet or services that have not been rendered still. For accounting purposes, the amount reported as a current asset decreases every month until the total amount of the prepaid expense is used up.

3 0
3 years ago
Value consists of: a. a product's performance characteristics and attributes for which customers are willing to pay. b. a produc
RUDIKE [14]

Answer:

A) a product's performance characteristics and attributes for which customers are willing to pay.

Explanation:

Only customers can assign value to a product. A manufacturer can set a product's price, but if the customers do not accept that price and assign a lower value to the product, then they will not purchase it. This applies to every single market situation (except for command economies) including monopolies, free markets, monopolistic competition, etc. Customers value a product depending on its performance characteristics and attributes, e.g. sports cars are value for being fast, Volvos for being safe, compared to other similar products. Customers do not value unique one of a kind characteristics, they value relative characteristics, i.e. the best product has a higher value.

3 0
2 years ago
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