All categories

3 years ago

Consider a bond that costs $1,000 and pays an $80 interest payment each year.

Business

1 answer:

Anna007 [38]3 years ago

7 0

Answer:

The interest rate for this bond is 8% per annum.

Explanation:

Given that,

a bond that costs $1,000 and pays an $80 interest each year.

To find the rate of interest, we use the following formula is

I=Prt

Here P = principal= $1,000

I=interest= $80

t=time= 1 year

∴80 = 1000×r×1

$\Rightarrow r=\frac{80}{1000}$

⇒r = 0.080

⇒r= 8%

The yield for this bond is 8% per annum.

You might be interested in

If the production function of ideas is as follows: then the function exhibits:

miss Akunina [59]

Answer:

Option c. Decreasing returns to the ideas stock but increasing returns overall

Explanation:

In economics, the challenge will be to increase the production of the goods and render more services. However, the return to the flattening curve means that there would be a change in the trends. Thus, in this case, there would be a variability in the supply and demand chain. Such tends to happen with drastic changes in the trends.

5 0

2 years ago

The issue of how much government should be involved in the economy has been the subject of much debate in Canada. In the United

Alekssandra [29.7K]

Answer:

But where do we go from here?

It depends on the result of more government intervention on quality life standards.

Do we need less or more government involvement?

It depends on the problems that need to be addressed. For example, to address problems such inequality it is mandatory that the government gets involve and create laws to prevent it. But surely for more movement of capitals there is no need of higher government involvement.

Is it a question of the quality of that involvement?

Yes. If government has an effective involvement there is even desirable to have its intervention but if it complicates everything then is repeled.

Could it be smarter rather than just less?

Yes, because it is proved that the economy acts in an effective way to good policy making.

How can the cost of government involvement decrease?

In this aspect it is important to mention the environmental issues in nowadasy economy. If the measurement of what is defined as "cost" is understand in the long run as conservation and balance between nature and economic explotation of resources.

5 0

3 years ago

Simon Company’s year-end balance sheets follow. At December 31 2017 2016 2015 Assets Cash $ 31,800 $ 35,625 $ 37,800 Accounts re

sweet [91]

Answer:

Explanation:

Balance Sheet

//2017// % // 2016 // % // 2015 //%//

Cash

//$31,800// 6% // $35,625 // 8% // $37,800 //10%//

Accounts Receivable

//$89,500// 17% // $62,500 // 14% // $50,200 //13%//

Inventory

//$112,500// 22% // $82,500 // 19% // $54,000 //14%//

Prepaid Expenses

//$10,700// 2% // $9,375 // 2% // $5,000 //1%//

TOTAL CURRENT ASSETS

//$244,500// 47% // $190,000 // 43% // $147,000 //39%//

Plant Assets

//$ 278,500// 53% // $ 255,000 // 57% // $ 230,500 //61%//

TOTAL NON CURRENT ASSETS

//$278,500// 53% // $255,000 // 57% // $230,500 //61%//

TOTAL ASSETS

//$523,000// 100%// $445,000 // 100% //$377,500 //100%//

Accounts Payable

//$129,900// 57% // $75,250 // 43% // $51,250 // 38% //

TOTAL CURRENT LIABILITIES

//$129,900// 57% // $75,250 // 43% // $51,250 // 38% //

Long Term Notes Payable

//$98,500// 43% // $101,500 // 57% // $83,500 // 62% //

TOTAL NON CURRENT LIABILITIES

//$98,500// 43% // $101,500 // 57% // $83,500 // 62% //

TOTAL LIABILITIES

//$228,400// 100% // $176,750 // 100% //$134,750//100%//

Common Stock

/$163,500// 55% // $163,500 // 61% // $163,500 //67%//

Retained Earnings

//$131,100// 45% // $104,750 // 39% // $79,250 //33%//

TOTAL EQUITY

//$294,600// 100% //$268,250 //100%// $242,750 //100%//

TOTAL EQUITY + LIABILITIES

//$523,000// 100%// $445,000// 100%// $377,500// 100%//

4 0

2 years ago

Consider the Northern California territory of Nova generates a sales revenue of $320,000 with four salespeople. The territory ac

antoniya [11.8K]

Answer: e)5% and $80,000

Explanation:

$320,000 was generated by the salespeople in this territory.

This territory comprises 10% of a $64 million market.

Territory comprises of = 10% * 64,000,000 = $6,400,000

Their market share is therefore;

= $\frac{320,000}{6,400,000}$ * 100%

= 5%

Four people made sales of $320,000.

Their productivity = $\frac{320,000}{4}$

= $80,000

8 0

3 years ago

The BVM Corp., construction company, purchased a used hybrid electric pickup truck for 30,000 and used MACRS depreciation in the

Alina [70]

Answer:

The BVM Corp.

The After-tax Rate of Return for the truck = After-Tax Income/Investment in Truck x 100

= $10,200/$30,000 x 100 = 34%

Explanation:

a) Calculations:

Current Value of the Truck =

Sale of Truck = $9,000

Savings from Truck = $38,000 ($9,500 x 4)

Total $47,000

Investment increase = $17,000 ($47,000 - 30,000)

Combined Tax = $6,800 (40% x $17,000)

After Tax Income = $10,200 ($17,000 - 6,800)

b) MACRS means the modified accelerated cost recovery system. It is an allowance by the IRS for faster depreciation in the first years of an asset's life and the depreciation slows later on in order to allow a business to recover the cost basis of certain assets that deteriorate over time.

c) Rate of return (ROR) is the percentage increase or decrease of an investment (truck) over a set period of time (4 years), which is calculated by taking the difference between the current (or expected) value ($47,000) and original value ($30,000), dividing by the original value, and then this is multiplied by 100.

3 0

3 years ago