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inn [45]
2 years ago
10

On January 1, $5,000,000, 10-year, 10% bonds were issued at $5,200,000. Interest is paid annually each January 1. The straight-l

ine method of amortization is used to amortize the premium. How much premium is amortized at the end of the first year?
Business
1 answer:
Mnenie [13.5K]2 years ago
3 0

Answer:

$20,000 premium is amortized at the end of the first year.

Explanation:

Straight line amortization:

premium amortized = Premium / number of years

                                 = ($5,200,000 - $5,000,000) / 10 years

                                 = $200,000 premium / 10 years

                                 = $20,000

Therefore, $20,000 premium is amortized at the end of the first year.

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an investor buys a 10000 par 4.25 percent annual coupon tips security with three years to maturity. if inflation every sic month
mr_godi [17]

Answer:

the  final payment that investor would received is $11,843.36

Explanation:

The computation of the final payment that investor would received is shown below:

Adjusted face value is

= 10,000 × (1 + 2.5%)^(3 × 2)

= 11,596.93

Final payment = Coupon + adjusted principal

= 11596.93 × 4.25% ÷ 2 + 11,596.93

= $11,843.36

hence, the  final payment that investor would received is $11,843.36

8 0
2 years ago
Cash outflows for McKinney Publishing in 2020 included:________. $347,000 in salaries to authors. $180,000 in fees to contracted
Marat540 [252]

Answer: $527,000

Explanation:

Salaries to authors = $347,000

Fees to contracted editors = $180,000

Copyrights obtained = $83,000

Purchase of a new printing warehouse = 1.3 million

Upgrade of current printing equipment = $560,000

McKinney Enterprises expense will be:

= Salaries to authors + Fees to contracted editors

= $347,000 + $180,000

= $527,000

4 0
2 years ago
Assume that the risk-free rate of interest is 5% and the expected rate of return on the market is 17%. A share of stock sells fo
Ugo [173]

Answer:

New price (P1) = $72.88

Explanation:

Given:

Risk-free rate of interest (Rf) = 5%

Expected rate of market return (Rm) = 17%

Old price (P0) = $64

Dividend (D) = $2

Beta (β) = 1.0

New price (P1) = ?

Computation of expected rate on return:

Expected rate on return (r) = Rf + β(Rm - Rf)

Expected rate on return (r) = 5% + 1.0(17% - 5%)

Expected rate on return (r) = 5% + 1.0(12%)

Expected rate on return (r) = 5% + 12%

Expected rate on return (r) = 17%

Computation:

Expected rate on return (r) = (D + P1 - P0) / P0

17% = ($2 + P1 - $64) / $64

0.17 = (2 + P1 - $64) / $64

10.88 = P1 - $62

New price (P1) = $72.88

7 0
3 years ago
Where a producer chooses the intensity level of its market coverage, which level is chosen to utilize the “shotgun” approach?
dsp73

Answer:

The level that utilizes the "shotgun" approach to market coverage is:

Intensive Distribution (mass coverage).

Explanation:

This marketing approach aims to reach many consumers through as many sales channels as possible.  In this situation, consumers have easy access to the goods or services.  The other approaches include Selective Distribution (where few outlets in specific locations are selected for the distribution of the goods and services) and Exclusive Distribution (where limited outlets are chosen because of the target market).

6 0
2 years ago
At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords
andrezito [222]

Answer: d. The FTC’s Red Flags Rule

Explanation:

The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.

This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.

3 0
3 years ago
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