Answer:
Explanation:
Bonds are corporate debt units that are issued by firms inform of financial securities and are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.
going by the question Upon issuance, Ozark should
Credit premium on bonds payable $100,000
Because face value of bonds = $10 million but issue price is $10 million * 101 % i.e $ 10100000
So, premium = 10100000 - 10000000 = $ 100000
Answer:
Price of treasury bond in terms of percentage of face value is 102.106%
Explanation:
Given:
Face value (FV) = $1000
Coupon rate = 7% or 3.5% semi-annually
Coupon payment (PMT) = 1000×0.035 = $35
YTM (rate) = 6.5% or 3.25% semi-annually
Maturity period (nper) = 5×2 = 10 periods
Using PV function to calculate price of treasury bond:
=PV(rate,nper,pmt,FV)
Price of bond is $1021.06 (it is negative as it is a cash outflow)
Price of bond in terms of percentage of face value = 
=102.106%
Answer:
The income approach.
Explanation:
This appraisal approach evaluates the importance of the present value of the future rights to the income the estate generates by converting the net income of the estate into a value. This is known as <u>the income approach</u> which is also recognized as capitalization. It is a type of real estate appraisal method and it is also used to appraise investment or income-producing properties.
I don't see a statement but if the investment was $210,000 and the future cash flows was $225,000 the net revenue would be 225,000-210,000 = 15000 and 15000/210,000=7.1% so the company's desired rate of return would not be met.