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Mila [183]
3 years ago
12

On January 1 of this year, Ikuta Company issued a bond with a face value of $115,000 and a coupon rate of 4 percent. The bond ma

tures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 5 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your answers to whole dollars.)
Prepare a bond amortization schedule for all three years of the bond's life.
Business
1 answer:
gulaghasi [49]3 years ago
4 0

Answer:

The carrying value at year three end is $115,000.

Explanation:

The bond amortization schedule shows the how the interest expense is calculated as well as the coupon payment at each year end.

The carrying value at each year end is the opening carrying value in that year plus interest expense(as % of opening carrying value) minus the coupon payment(as % of face value).

In the beginning carrying value is the price the bond was issued,which could be computed using the pv formula in excel.

=-pv(rate,nper,pmt,fv)

the rate is yield to maturity of 5%

nper is the number of coupon payments to be made by the bond,which is 3

pmt is the yearly coupon payment which is:$115,000*4%=$4,600

fv is the face value of $115,000

=-pv(5%,3,4600,115000)=$111,868.26

Find attached amortization schedule.

Download xlsx
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Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively. In
Ymorist [56]

Answer:

D) Shift of the demand curve for Z to the left

Since both the equilibrium quantity and price decreased.

Explanation:

A rightward shift of the demand curve should increase both the equilibrium price and quantity.

A rightward shift of the supply curve should increase the equilibrium quantity and decrease the equilibrium price.

A leftward shift of the supply curve should increase the equilibrium price and decrease the equilibrium quantity.

4 0
3 years ago
What factors are used in the rule-of-thumb methods to determine the communication budget?.
kvv77 [185]

The factors that are used in the rule-of-thumb methods to determine the communication budget is "Prior sales and communication activities".

<h3>What is rule-of-thumb method?</h3>

The rule of thumb would be a cognitive guideline that offers basic guidelines or guidance that is distilled for a certain topic or course of action.

Some characteristics of rule-of-thumb are-

  • A general rule of thumb an unofficial practical guidance that offers streamlined rules that generally apply.
  • Numerous financial rules of thumb provide advice on how much should be saved, how much should be paid for a home, where and how to invest, and other topics.
  • Rules of thumb may not apply to your specific scenario because they not scientific and don't take into consideration the unique circumstances and demands of each individual.
  • It is a fundamental principle that provides step-by-step guidelines for carrying out or handling a specific task.
  • In contrast to scientific study or a theoretical underpinning, rules of thumb typically emerge through experience and practice.

To know more about rule-of-thumb method, here

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3 0
2 years ago
A firm has redesigned its production process so that it now takes 10 hours for a unit to be made. Using the old process, it took
Citrus2011 [14]

Answer:

Reduction in work in progress = $7500

Explanation:

given data

time = 10 hours

time = 15 hours

worth  = $1,500

to find out

reduction in work in process value

solution

we find work in progress   by this formula

work in progress  = Flow rate  × Cycle Time     .......................1

so Initial work in progress is

Initial work in progress   = (1 per hour)  × 10 hours = 10

and Final work in progress is here

Final work in progress   = (1 per hour) × 15 hours = 15

so

Initial work in progress   value = 10  × 1500

Initial work in progress   value= $15000

and

Final work in progress    value =15  × 1500

Final work in progress    value = $22500

so

Reduction in work in progress = $22500 - $15000

Reduction in work in progress = $7500

4 0
3 years ago
________________ mortgage is two or more mortgages consolidated into one payment, and is usually designed to allow the buyer to
azamat

Answer:

wrap around mortgage

Explanation:

A wrap-around mortgage is can be used in deals of owner-financing.

Wrap around mortgage refers to two or more mortgages consolidated into one payment. Such type of mortgage allow the buyer to purchase with a smaller down payment. A buyer also gets an added benefit of a below market interest rate first mortgage. A wrap-around mortgage can only be used to homes with an existing FHA or VA loans.

8 0
3 years ago
Find the average variable cost for producing 18 sneakers. Round your answer to the nearest hundredth.
murzikaleks [220]

Answer: $2.78

Explanation:

Average variable cost is calculated by dividing the total variable cost of producing a certain number of units of a good by that same number of units.

Average variable cost = Variable cost of producing 18 sneakers / 18

= 50 / 18

= 2.7778

= $2.78

7 0
3 years ago
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