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sveticcg [70]
3 years ago
14

Bronson Manufacturing is planning to issue $12 million in bonds. Based on a poll of potential investors, they have the highest c

hance of raising the funds they need with one of four sets of bond characteristics. Which option would cost them the MOST in total interest over the life of the bond? A.three-year bond with 9.5% annual interest rate B.four-year bond with 7.25% annual interest rate This is correct answer : C.eight-year bond with 5.5% annual interest rate D. six-year bond with 6.0% annual interest rate
Business
1 answer:
Ne4ueva [31]3 years ago
8 0

Answer:

Option A

Total interest = 9.5% x $1,000 x  3 years =  $285

Option  B      

total interest  =  7.25% x $1,000 x 4 years = $290

Option C

Total interest = 5.5% x $1,000 x 8 years = $440

Option D

Total interest = 6% x $1,000 x 6 years = $360

Option c will cost the company the most in total interest over the life of the bond

Explanation:

In this case. the total interest over the life of the bonds is calculated. The total interest is a function of interest rate, par value of the bonds and number of years to maturity. A par value of $1,000 is assumed in this respect.

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Answer:

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7 0
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The addition of acceptance criteria factors to the milestone schedule in a project charter helps the team understand who will ju
tester [92]

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4 0
3 years ago
Which of the following documents is not often used for inventory control?
podryga [215]
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5 0
2 years ago
In its first year of operations, Wildhorse Co. recognized $33,700 in service revenue, $7,800 of which was on account and still o
ale4655 [162]

Answer:

accrued basis income: 14,300

cash basis income:        9,500

Explanation:

accrued: we reocgnize base on the time of transfer of goods and the expense are mathced when the period they occur.

revenues                   33,700

operating expense <u> (19,400) </u>

  net income             14,300

cash basis: we recognize based on the cash collection or disbursement:

collected from customer     25,900

paid expenses                     (13,600)

insurance paid                  <u>    (2,800)  </u>

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4 0
3 years ago
Which of the following statements are examples of labor except:
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Answer:

C) a group of church members gather clothes for a clothing drive for the poor in their community.

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3 years ago
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