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likoan [24]
2 years ago
13

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $50,000 and matures in 20 years. T

he bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. Bond N also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. The required return on both these bonds is 10 percent compounded semiannually. What is the current price of Bond M and Bond N? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Nina [5.8K]2 years ago
4 0

Answer

Current Price of Bond M = $25,202

Current Price of Bond N = $7,102

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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Answer:

a. Yes

Based on the data given, it appears that specifications are being met.

Explanation:

a) Data and Calculations:

         Sample 1    Sample 2    Sample 3    Sample 4  Sample 5        Average

                 12.5         13.4              13.0            13.2         12.9        65       13.00

                 12.7         13.2              13.6            12.7         13.5        65.7     13.14

                 12.9         13.0              13.3            13.3         13.2        65.7     13.14

                 13.2         13.1               13.4            12.7         13.2        65.6     13.12

Totals       51.4       52.7              53.2            51.9        52.7      261.9     52.4

Average 12.85      13.17               13.3            12.97      13.17                     13.1

b) Using the law of averages, the process specifications of 12.45 and 13.35 minutes were not exceeded under any sample type.  Therefore, it can be concluded that the process specifications are being met.

6 0
2 years ago
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Answer:

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Explanation:

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8 0
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On November 1, 2021, Aviation Training Corp. borrows $46,000 cash from Community Savings and Loan. Aviation Training signs a thr
emmainna [20.7K]

Answer:

<u>Record the issuance of note. </u>

November 1, 2021

Dr.   Cash                   46000

Cr.   Note Payable     46000

<u>Record the adjustment for interest.</u>

December 31, 2021

Dr.   Interest Expense    460

Cr.   Interest Payable     460

(46000*6%)*3/12 = 460

<u>Record the repayment of the note at maturity</u>

Dr.   Note Payable     46000

Dr.   Interest Payable     460

Dr.   Interest Expense    230

Cr.   Cash                    46,690

(46000*6%)*1/12 = 230

Explanation:

* At the year end the interest expense is accrued and recorded as interest payable.

4 0
2 years ago
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