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tiny-mole [99]
3 years ago
7

A 25-year, $1,000 par value zero-coupon rate bond is to be issued to yield 8 percent. Use Appendix B for an approximate answer b

ut calculate your final answer using the formula and financial calculator methods.
a. What should be the initial price of the bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.)
b. If immediately upon issue, interest rates dropped to 7 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.)
c. If immediately upon issue, interest rates increased to 10 percent, what would be the value of the zero-coupon rate bond? (Assume annual compounding. Do not round intermediate calculations and round your answer to 2 decimal places.)
Business
1 answer:
Nastasia [14]3 years ago
6 0
Your answer would be c
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In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 19
uranmaximum [27]

Answer:

B) $1,132,895

Explanation:

If the CPI = 15.2 in 1931, and in 2012 it was = 229.6, then President Hoover was making a fortune = (229.6 / 15.2) x $75,000 = $1,132,895, and he was a terrible president, one of the worst ones in all history.

In 2012 when President Obama was in office, he made around $400,000 and he was a much better president.

6 0
3 years ago
prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed
Serhud [2]

Answer:

Savings in fixed costs= 30,800

Explanation:

Giving the following information:

Prockets Inc. just eliminated a product that had yearly sales of $120,000, yearly variable expenses of $48,000, and yearly fixed expenses of $92,000. By dropping the product, Sprockets increased its company-wide yearly net income by $10,800.

Loss= 120,000 - 48,000 - 92,000= -20,000

By dropping the product:

Savings in fixed costs= 20,000 + 10,800= 30,800

3 0
3 years ago
The Commonwealth of Virginia filed suit in October 2014, against Northern Timber Corporation seeking civil penalties and injunct
tatyana61 [14]

Answer:

Northern Timber Corporation

1. Journal entries to record the change:

Debit Litigation Liability $1,000,000

Credit Cash $600,000

Credit Litigation Loss $400,000

To record the payment of the litigation liability and the reduction of litigation loss by $400,000.

2. Northern can restate the 2014 and 2015 Retained Earnings to reflect the change in the litigation loss.

Explanation:

a) Data and Calculations:

Records of probable loss from ultimate settlement:

2014:

Loss—litigation  1,000,000

Liability—litigation 1,000,000

2016:

Agreed settlement = $600,000

Analysis of Entries:

Litigation Liability $1,000,000

Cash $600,000

Litigation Loss $400,000

4 0
2 years ago
Which is incorrect about Prezi? a. Prezi had an educational license for teachers and students with .edu emails b. Classic versio
barxatty [35]

Answer:

The incorrect option about Prezi is option D) There is no way Prezis can be edited offline.

Explanation:

There is a way to edit Prezi offline. Once you have a paid subscription that allows you to download the Prezi app to your device, offline editing is automatically enabled.

Instead of opening your browser and going to Prezi.com, you run Prezi offline on your desktop or laptop. This lets you present and edit your prezis offline anytime, anywhere. If you need to make a quick change to your presentation, your can fire up your laptop and edit it even if you're not online.

4 0
3 years ago
Which term refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accountin
patriot [66]

Answer:

Internal controls is the correct answer.

Explanation:

6 0
3 years ago
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