Answer:
1. $550,000
Explanation:
1. It is given in the question that the stated interest rate and the market interest rate both are having the same rate, i.e, 12%.
Hence, the bonds are issued at the face value that is $550,000.
2. The Journal entries are as follows:
(i) On January 1,
Cash A/c Dr. $550,000
To bonds payable $550,000
(To record the bond issuance)
(ii) On December 31,
Interest Expense A/c Dr. $66,000
To cash A/c $66,000
(To record the first interest payment on December 31 assuming no interest has been accrued earlier in the year)
Workings:
Interest expense = $550,000 × 12%
= $66,000
Answer:
17%
Explanation:
Purchase price of bond = $921.77
Years investment held = n = 7
Coupon rate = C = 15%
Frequency of payment = m = 2
Annual coupon = $1,000 × (0.15/2) = $75.00
Realized Yield = i
Selling price of bond = PB = $961.22
The realized rate of return is approximately 16.6 percent. Using a financial calculator provided an exact yield of 16.625 percent.
Based on the graph that shows the change in the market for bicycles, the statement that explains the graph is The demand for bicycles increased due to news about the health benefits of exercise. The market price & quantity increased.
<h3>Which statement explains the supply and demand graph?</h3>
The question is not complete as the graph is not given. However, an answer can be formulated based on the laws of demand and supply.
The most likely option to be true is that the demand for bicycles increased due to news about its health benefits and then this led to the market price and quantity increasing.
This is because the increased demand for the bicycles would have drove the prices up. This would then have inspired suppliers to produce more bicycles thereby increasing bicycle quantity as well.
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Formula for calculating GDP;
GDP = Consumption + Investment + Government spending/Expenditure + Exports - Imports
Y = C + I + G + XM
Y = 10.53 + 6.32 + 3.40 + 1.28 - 2.26
GDP = 19.27 Trillion Rupees
Answer:
<h2>The answer in this case would be option a. or feel more wealthy, so the quantity of goods and services demanded rises. </h2>
Explanation:
- As a common consumer psychology,as the price of any good or service decreases,any rational consumer or buyer feels more wealthy compared to before as the purchasing power of the consumers or buyers pertaining to that particular good or services has increased,everything else held constant.
- Purchasing power of any good or service is generally reflected by the purchasing or buying capacity of that good or service with the amount of money that a consumer or buyer has at his or her disposal.
- As the price of any good or service decreases,it becomes cheaper to the consumer,again everything else considering constant.In other words,it increases the purchasing power or capacity of the consumers or buyers.Therefore,the typical consumer or buyer will prefer or demand more of that particular good or service thereby,increasing its quantity demanded due to a price reduction.