Answer:
Dr. Cash $98,000
Dr. Discount on Bond $2,000
Cr. Bond payable $100,000
Explanation:
If the bonds are issued at a price below the face value then the bonds are issued on a discounted value. The difference between face value and issuance value is known as discount. This discount is recorded separately and amortized over bond's life.
As per given data
Face value = $100,000
Issuance value = $98,000
Discount = $100,000 - $98,000 = $2,000
Answer:
$5.76
Explanation:
Calculation to determine the price of a put option with the same exercise price
We would be Using put-call parity and solving for the put price
$67 + P = $70e^–(.026)(3/12)+ $3.21
$67 + P = $70e^–(.026)(.25)+ $3.21
$67 + P =190.2797^–(0.0065)+ $3.21
$67 + P =$69.5465+ $3.21
$67 + P =$72.7565
P=$72.7565-$67
P=$5.7565
P=$5.76 (Approximately)
Therefore the price of a put option with the same exercise price will be $5.76
I believe that it will take Marcus 8 months to save 2,500 since he already has 1,300 if you subtract that from 2,500 you get 1,200 and 150 x 8 = 1,200
