1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lynna [10]
3 years ago
13

Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the

issue date was 10%. Adonis received $286,827 in cash proceeds. Which of the following statements is true?
a) Adonis must pay $286,827 at maturity and no interest payments.
b) Adonis must pay $270,000 at maturity and no interest payments.
c) Adonis must pay $270,000 at maturity plus 20 interest payments of $13,500 each.
d) Adonis must pay $286,827 at maturity plus 20 interest payments of $14,850 each.
e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

  • The $286,827 that they receive is the market price/ market value of the bond.
  • The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
  • Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
  • The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
  • <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
You might be interested in
When compared to married couple retirement households, single retirees have ________ household income.
sp2606 [1]

Answer:

a. less than half

Explanation:

Single retirees tend to have less than half of the household income as married couple retirement households. This is mainly due to the fact that married couples have two complete retirement incomes coming in every month. One for each individual in the relationship, many times one individual in the relationship is making much more in retirement than their spouse. Therefore, a single retiree would have less than half since they are alone and only getting one retirement check, so if they worked in the same field as the married couple they would still only be getting half of what the married couple make.

5 0
3 years ago
Leah, Inc., is proposing a rights offering. Presently there are 1,000,000 shares outstanding at $78 each. There will be 100,000
Anvisha [2.4K]

Answer:

the new market value of the company is $85,000,000

Explanation:

The computation of the new market value of the company is shown below:

= Number of shares × price per share + new shares × price per share

= 1,000,000 × $78 + $70 × 100,000

 = $85,000,000

Hence, the new market value of the company is $85,000,000

We simply applied the above formula so that the correct value could come

3 0
3 years ago
A random sample of 89 tourists in chattanooga showed that they spent an average of $2860 (in a week) with a standard deviation o
faust18 [17]

Answer:

The complete question is given in the explanation box below and the solutions to the problem is shown in the pictures attached herewith accordingly. Thank you.

Explanation:

a. Determine the degrees of freedom for this test.

b. Compute the test statistic.

c. Compute the p-value.

d. What is your conclusion? Let α = .05.

6 0
3 years ago
Read 2 more answers
Why is it important that the military be able to evacuate supplies and people when necessary? When might they need to do this?
Marrrta [24]
It is important for the military to be able to evacuate supplies when necessary because then they can ensure the supplies will be safe the same with people. they do this during a war, major storms, and when plagues happen. 
5 0
3 years ago
The consumer price index is the:
Dmitry [639]

Answer:

B. cost of a market basket of goods and services typically consumed in the current period.

5 0
3 years ago
Read 2 more answers
Other questions:
  • What is the primary function of financial institutions in the economy?
    8·1 answer
  • As a management consultant, lamont knows that regardless of how good his firm's product might be, the business has little chance
    12·1 answer
  • All of the following information about a customer must be used in determining annuity suitability EXCEPT
    5·1 answer
  • The commercial for-profit segment of the food-service industry is very narrow t or f
    9·1 answer
  • You observe a closed economy that has a government deficit and positive investment. Which of the following is correct? a. Privat
    10·1 answer
  • Which one of the following risks can be progressively eliminated by adding stocks to a portfolio?
    12·1 answer
  • Resellers are business intermediaries who buy finished goods and resell them for a profit. Their business model dictates that th
    5·1 answer
  • The following statements regard product differentiation in monopolistic competition. Label the following statements as being eit
    13·1 answer
  • Your level of expectancy as a marketing manager​
    13·1 answer
  • Which of the following activities are covered by OSHA's steel erection regulations?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!