1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serhud [2]
3 years ago
11

On January 1, 2017, Boston Enterprises issues bonds that have a $1,850,000 par value, mature in 20 years, and pay 7% interest se

miannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months
Business
1 answer:
ANTONII [103]3 years ago
6 0

Answer:

Interest per six months =$64,750 .

Explanation:

B<em>onds are instruments used by companies, governments and other entries to borrow from the public. </em>

<em>They represent a contractual agreement where  the borrower commits to pay a percentage of the principal amount borrowed plus the principal amount to the lender or investor.</em>

The proportion of the amount borrowed which is paid as interest is called coupon. The interest payment is computed as the the coupon rate in percentage multiplied by the amount borrowed.

Interest payment = Coupon rate (%) × Nominal Value

 Annual interest payment    = 7%  × 1,850,000 =$129,500

Semi-annual interest payment = Annual interest payment/2

Semi-annual interest payment =129,500 /2 =64,750 .

Interest per six months =$64,750 .

Note we had to divide by 2 because they are two six months in a year.

You might be interested in
Mars inc., a manufacturer of cat food in texas, places an ad in a publication aimed at veterinarians. the ad explains why they s
ioda
The correct option from the given options is "<span>a promotional push strategy".

In the above situation, Mars Inc. utilized a promotional push strategy. Projects intended to influence the exchange to stock, merchandise, and advance a maker's items are a piece of a limited time push procedure. The objective of this technique is to push the item through the channels of appropriation by forcefully offering and elevating the thing to the affiliates, or exchange.
</span>
7 0
3 years ago
rabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the​
pantera1 [17]

Answer:

$40.875

Explanation:

Given that,

Selling Expenses = $ 9,600

Merchandise Inventory on December 31 = 33,000

Merchandise Inventory on January 1 = 47,000

Purchases of merchandise = 83,500

Rent for store = 12,100

Sales commissions = 7,300

Sales revenue = 168,500

Cost of goods sold:

= Beginning merchandise inventory + Merchandise purchase - Ending merchandise inventory

= $47,000 + $83,500 + $33,000

= $163,500

If Crabapples sold 4,000 boxes of dry fruit during the​ year, then the cost per box of dry fruits is:

= Cost of goods sold ÷ Number of boxes sold

= $163,500 ÷ 4,000

= $40.875

3 0
3 years ago
After working as a manager of a small business for several years, Connie has been offered a management position with a local cha
vesna_86 [32]

Answer:

The principles of management are same.

Explanation:

Whatever industry the company is operating in, the way the company is managed is the same regardless the size, industry and motive of the company.

6 0
3 years ago
When revenues equal spending, a budget is considered
Dominik [7]
<span>c. balanced.</span><span>

Upward urban growth will increase pollution as the number of people will increase. The increase in population and obstruction of free movement of air because of upward urban growth will result in a "heat island". Since the number of inhabitants is going to increase with upward urban growth, waste management will also become an issue.</span>
8 0
3 years ago
On August 1, Ernie wrote to Elsie offering to sell Elsie his car for $7,600, and he promised to hold the offer open for ten days
Daniel [21]

Answer:

Yes, the contract is still valid.

Explanation:

Let us first clarify some terms first.

A contract is referred to as a legally binding agreement that is recognized, known and governs the rights and duties of the parties involved in an agreement. A contract is legally enforceable because it meets the features and approval of the law. An agreement basically involves the exchange of goods, transactions, services, money, or promises. In the case of breach of contract, the law awards the injured party access to legal remedies which include damages and cancellation.

Letter of revocation is an act by which a person having authority, calls back or in other words annuls a power, gift, or benefit, which had been bestowed upon another.

Yes, the contract still holds. This is due to the reason that the letter had a date mentioned on it which is August 4, a day before the contract was accepted even though the revocation letter arrived late.

Therefore, as regards to the date on the letter, the contract is still valid.

3 0
3 years ago
Other questions:
  • Match the financial institutions with the features.
    8·1 answer
  • Bobby is speaking to his friend and says, "this musical is going to cost me $60 when I buy the ticket." His friend corrects him
    5·1 answer
  • A member of the park service believes the average number of cacti per square km in tucson, az in the year 2001 is less than the
    14·1 answer
  • As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receiva
    8·1 answer
  • Two months ago, Air-tite Corporation purchased 5,500 pounds of Hydrol, paying $18,700. The demand for this product has been very
    14·1 answer
  • During an economic​ recession, A. the bond demand and supply curves both shift to the left and the equilibrium interest rate usu
    13·1 answer
  • How do you plan to become a responsible consumer? ​
    10·1 answer
  • Uncertainties in the supply chain can lead to: _____________
    6·1 answer
  • Pam and Ralph work at a factory with a labor union. Pam and Ralph may have to
    14·2 answers
  • For each of the following accounts indicate the effect of a debit or a credit on the account and the normal balance.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!