Answer:
Bond is selling at Premium
Explanation:
It is common for bond valuation if coupon rate is greater than market interest rate than bond is selling at premium.
Suppose
Bond = $1000
Coupon rate = 5.2% / 2 = 2.6%
Market interest rate = 4.6% / 2 = 2.3%
No of year = 18 x 2 = 36 Years
using PVIFA and PVIF table value coupon amount and bond we can get the value of current market price.
Coupon is $1000 x 2.6% = $26
Par Value of bond = $1000
Using PVIFA & PVIF table at 2.3% we get the following figures.
$ 26 x 24.3026 = $631.87
$ 1000 x 0.4410 = $441.04
Current market value of bond = $1072.91
The quantity of a demanded product is inversely proportional to its price.
Simply put, the law of demand says that when prices go UP, demand goes down and when prices go DOWN demand goes up.
All of the given questions are part of the critical questions that
entrepreneurs need to ask themselves. Being an entrepreneur needs a lot
of thinking and planning and these questions should be taken into
account. Running a business would include the location fit for the type
of business you have, the structure of your business, how you recruit
workers and the incentives you give them, and most importantly, your
capital.
Answer:
Please refer the journal entries below
Explanation:
Trade Discount:
There is no accounting entry for the trade discount, trade discount is simply deducted from the total amount and the entry is passed after incorporating the trade discount
1) Audrey’s Antiques
Since Audrey’s Antiques have taken the services amounting more than $1,000, they are eligible for the trade discount of 12% i.e. ( 12% of $1,900) = $228, hence Income will be recorded at ($1,900 - $228) = $ 1,672
Advertising Fee Receivable Debit $ 1,672
Advertising Fee Income Credit $ 1,672
2) Michael’s Motors
Since Michael’s Motors have taken the services amounting less than $1,000, they are not eligible for the trade discount of 12%
Advertising Fee Receivable Debit $ 540
Advertising Fee Income Credit $ 540
