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3 years ago

If bonds are issued at 101.25, this means that ____________________

Business

1 answer:

Whitepunk [10]3 years ago

4 0

Answer:

c.a $1,000 bond sold for $1,012.50.

Explanation:

We assume the par value is $1,000 and since the bond is issued at 101.25 that means its selling price is

= $1,000 × 101.25%

= $1,012.50

Since the bond is issued more than the face value that reflects the premium and if the bond is issued less than the face value so it is issued at a discount

So the right option is c.

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On January 1, Year 1, Young Company issued bonds with a face value of $108,000, a stated rate of interest of 10 percent, and a 1

8090 [49]

Answer:

Premium on the issue is $6,931

Bond interest expense is $10,343.79

Bond carrying value is $114,474.79

Explanation:

The premium on the day of issue is the bonds' cash proceeds less the face value.

Cash proceeds is $114,931

Face value is $108,000

Premium =$114,931-$108,000=$6,931

Interest expense at December year one is the cash proceeds from the bondholders multiplied by the bond yield to maturity of 9% as shown below

interest expense=$114,931*9%=$10,343.79

The bond carrying value at the end of the year is the cash proceeds plus the interest expense less coupon payment as below:

Carrying value=$114,931+$10,343.79-($108,000*10%)=$114,474.79

7 0

3 years ago

Read 2 more answers

Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufact

Hunter-Best [27]

Answer:

a. $804,000

Explanation:

Preparation of Worth Company's cost of goods sold for the year

Cost of goods manufactured $816,000

Add Beginning finished goods inventory $252,000

Less Ending finished goods inventory ($264,000)

Cost of goods sold $804,000

Therefore Worth Company's cost of goods sold for the year is: $804,000

8 0

3 years ago

Burke tires just paid a dividend of $2.42. analysts expect the company's dividend to grow by 30% this year, 20% next year (year

Ivanshal [37]

Answer:

There is no correct answer is these options. But the correct answer is $113.41

Explanation:

The formula to solve this is:

Po = D1/r - g

Po is the Current price of the common stock

D1 is the future dividend payment

r is the rate of return

g is the growth rate.

This is quite different from the usual(single stage). This is Two-stage Dividend Discount Model. To solve this;

D1(Dividend in year 1) is $3.15( $2.42 x 1.3)

D2(Dividend in year 2) is $3.78(3.15 x 1.2)

D3(Dividend in year 3) is $4.15($3.78 x 1.1)

D in subsequent years is $4.36(4.15 x 1.05)

P3(price of stock in year 3) = $4.36/0.083 - 0.05

=$132.12

Now the stock's current market value is

$3.15/1.08 + $3.78/1.08^2 + $4.15/1.08^3 + $132.12^3

The price of the stock is $113.41

4 0

3 years ago

All of the following phrases describe a partnership except

tamaranim1 [39]

All of the following phrases describe a partnership except (<span>B) high protection for your personal assets. Being with a partnership, at least, you have this idea of shared responsibility in making decisions for the company. Always, starting with low costs will surely be experienced in partnerships. The involvement between you and your partner will be up to 20 depends on the agreement.</span>

3 0

3 years ago

an efficiency wage is a: system of tying wage rates to overall factory efficiency rather than personal productivity. higher wage

krok68 [10]

An efficiency wage is a higher wage paid to reward workers who show greater productivity. Option D is correct.

<h3>What is the Efficiency wage?</h3>

Wages provided to employees over the minimum wage in order to retain a trained and efficient staff are referred to as efficiency wages. Adam Smith defined a type of pay disparity in the 18th century, in which workers in some businesses are paid more than others based on the level of trustworthiness necessary.

Employers establish efficiency salaries above the equilibrium wage rate as an incentive for better employee performance. An efficiency wage is a higher wage provided to employees who are more productive.

Therefore, option D is correct.

Learn more about the efficiency wage, refer to:

brainly.com/question/27960552

#SPJ1

8 0

1 year ago