Answer:
caring value of bond liability is $48000
interest expense = $3547
annual coupon = 3500
amount of bond discount amortization is $47
Explanation:
given data
face value = $50,000
bonds issue = 96
discount = 4%
time = 20 year
interest = 7%
effective rate of interest = 7.389%
to find out
compound annual coupon
solution
we have given face value and discount 4 %
so issue price will be
issue price = 96% of face value
issue value = 96% × 50000 = $48000
and
interest expense is here by effective interest rate is
interest expense = 7.389% of $48000
interest expense = $3547
and
annual coupon is here
annual coupon is 7% of face value
annual coupon = 7% × 50000
annual coupon = 3500
and
amount of bond discount amortization is 3547 - 3500 = $47
Based on the large shipment of big shipping boxes and making direct unloading to a train car for further transport has shown the simplification of transport as a result of:
<h3>What is Containerization?</h3>
This refers to the use of intermodal freight transport where cargoes are used in the transport of goods with the use of freights and superfreighters.
With this in mind, we can see that containerization has globally simplified the transport of products from <em>one mode of shipping</em> to another.
Read more about containerization here:
brainly.com/question/13161794
Answer:
a. an increase in lending activity.
Explanation:
Interest rate caps (ceilings) are a normative in adjustable-rate mortgage agreements. They define the maximum interest rate permitted in the loan period.
Since they evidently benefit the borrowers (they will never have an exorbitant interest rate), that gives them the incentive to borrow. On the other hand, banks become more secure that the borrowers will not default the loan (when the interest rate becomes high), so they get the incentive to lend.
Answer:
i) Z = 20( 80 ) + 50(20 ) = $2600
ii) $3000
Explanation:
representing products A and B as x₁ and x₂
using the given data
Max ( z ) = 20x₁ + 50x₂ ( optimal product mix for optimal profit ) ---- ( 1 )
0.8 ( x₁ + x₂ ) ≥ 0
0.8x₁ + 0.8x₂ ≥ 0 ------------ ( 2 )
also x₁ ≤ 100 --- ( 3 ) considering the amount to be sold ( sales volume )
based on the availability of raw material
2x₁ + 4x₂ ≤ 240 ----- ( 4 )
resolve equations 2, 3, and 4 graphically
x₁ = 80 units , x₂ = 20 units
back to equation 1
Z = 20( 80 ) + 50(20 )
= 1600 + 1000 = $2600
ii) To increase the number of units of A produced
given that x₁ ≤ 100 and the actual optimal units produced = 80 units
2600 + 20(100-80)
= 2600 + 20(20) = 2600 + 400 = $3000
