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Anna71 [15]
2 years ago
6

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

lling for $952. At this price, the bonds yield 6.1 percent. What must the coupon rate be on the bonds? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
vazorg [7]2 years ago
4 0

Answer:

=5.32%(Approx)

Explanation:

Current price=Annual coupon*Present value of annuity factor(6.1%,8)+$1000*Present value of discounting factor(6.1%,8)

952=Annual coupon*6.18529143+1000*0.622697222

Annual coupon=(952-622.697222)/6.18529143

=$53.24(Approx).

Coupon rate=Annual coupon/Face value

=$53.24/1000

=5.32%(Approx)

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Answer:

National Park /Tours Co.

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Unadjusted Trial Balance

May 31, 2019

Account Titles                Debit       Credit

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Equipment                   25,000

Drawing                         3,500

Accounts receivable     3,500

Accounts payable                          $ 1,750

Fees Earned                                   13,900

Supplies                       2,450

Capital                                            34,700

Operating expenses   5,200

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Explanation:

a) Data and Calculations:

T-accounts

Cash

Account Titles                Debit       Credit

Beth Worley, Capital  (1) 34,700

Supplies                                      (2) 2,450

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Accounts payable                    (5) 18,750

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Drawings                                  (9) 3,500

Balance                                        10,700

Totals                         $45,100  $45,100

Equipment

Account Titles             Debit       Credit

Cash                         (3) 4,500

Accounts payable (3) 20,500

Balance                                       25, 000

Totals                       $25,000   $25,000

Beth Worley, Drawing

Account Titles           Debit       Credit

Cash                     (9) 3,500

Accounts Receivable

Account Titles           Debit       Credit

Fees Earned     (7) 13,900

Cash                                    (6) 10,400

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Accounts Payable

Account Titles           Debit       Credit

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Cash                    (5) 18,750

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Account Titles           Debit       Credit

Accounts receivable            (7) 13,900

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Account Titles           Debit       Credit

Cash                   (2) $2,450

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Account Titles           Debit       Credit

Cash                                       (1) 34,700

Operating Expenses

Account Titles           Debit       Credit

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Cash                     (8) 1,400

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Totals                    $5,200       $5,200

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Given that the planned sales for June this year are $120,000 and that last year's actual sales for the month of June were $110,000, there is a 9.09% increase in sales for the month.

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