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
The federal speedy trial act allows for the dismissal of charges when the prosecution does not seek indictment within ________ d
Natali5045456 [20]

The Speedy Trial Act of 1974 allows for the dismissal of charges when the prosecution does not seek indictment in 30 days of arrest, or within 70 days after indictment when a trial does not begin. The act has time limits for the completion of different stages of a federal criminal prosecution. 

<span> </span>

3 0
3 years ago
A situation in which both unemployment and inflation rates are high is known as ______.
faust18 [17]

Stagflation is a condition in which both the unemployment rate and the inflation rate are high. Stagflation is characterised by slower economic development, low employment rates, and increased inflation rates. Stagflation is the occurrence of low economic growth, high unemployment.

In terms of economics, stagflation, sometimes known as recession-inflation, is a state in which unemployment is consistently high, the economy is growing slowly, and the inflation rate is high or rising. When inflation and economic stagnation coexist, this is known as stagflation. The economy is in a state of stagnation due to rising unemployment.

The term "stagflation" was first used in the 1970s, a period of both high inflation and rising unemployment. Stagflation wasn't commonly acknowledged until the middle of the 20th century.

To know more about stagflation, click here:-

brainly.com/question/28177756

#SPJ4

7 0
11 months ago
Many organizations are concerned about the rising cost of employee benefits and question their value to the organization and to
-Dominant- [34]

Explanation:

The benefits that organizations offer their employees are essential to add value to the job function. Through them, it is possible for the organization to attract and retain qualified employees, in addition to creating a favorable and positive organizational environment for the development of professional skills. The benefits help to motivate the employee and improve the perception and appreciation of their position and the company.

The benefits that most add value to employees are health and retirement plans, in addition to dental plans, paid vacations, etc. These benefits are not mandatory for the employer, but they are great differentials in differentiating jobs in the view of individuals.

5 0
2 years ago
Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current pr
bija089 [108]

Answer:

The outlook for the economy and the markets is for an improvement.

Explanation:

p/e ratio = price / earning

the higher the equity, the lower the ratio

If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .

this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook

8 0
3 years ago
Copper Corporation, a calendar year C corporation, owns stock in Bronze Corporation and has net operating income of $900,000 for
Olegator [25]

Answer:

$150,000

Explanation:

Copper Corporation

The amount of dividends received deduction will tend to depends upon the ownership percentage by the corporate shareholder.

Therefore in a situation where Copper Corporation is said to owns only 85% of what Bronze Corporation had, Copper Corporation definitely qualify for a percentage of 100 deduction or a total amount of $150,000.if we have to based on the above information given because Bronze Corporation pays Copper Corporation a dividend of $150,000.

6 0
3 years ago
Other questions:
  • When the risks of the individual components of a project’s cash flows are different, an acceptable procedure to evaluate these c
    14·1 answer
  • Technician A says that many oil pumps are driven directly off the front of the crankshaft. Technician B says that others are dri
    6·1 answer
  • Use the following data to compute total manufacturing costs for the month:
    11·1 answer
  • Significant accounting policies may not be:
    11·1 answer
  • A farmer grows wheat and sells it to the miller for $84. The miller turns the wheat into flour and sells it to the baker for $10
    11·1 answer
  • if an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Associatio
    14·1 answer
  • Tony wants to pay off his credit card balances within 12 months. He is trying to decide if he should use his $1,000 in savings t
    9·2 answers
  • The balance sheet for Monty Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $1
    6·1 answer
  • Suppose Americans buy inputs from foreigners. When the price of foreign inputs falls, the U.S. SRAS curve __________, which tend
    5·1 answer
  • To what degree a country's legal system is based on the rule of law matters little in international business.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!