Answer:
The market price of the bond is $913.41
Explanation:
The coupon payment is annual, meaning it is being paid once a year.
N(Number of years/Number of periods) = 5
I/Y(Yield-To-Maturity) = 5 percent
PMT(coupon payment) = $30 [(3/100) x $1,000]
FV(Future value/Par value) =$1,000
PV(present value or market value) = ?
Now to solve this, lets use a financial calculator (e.g Texas BA II plus)
N= 5; I/Y = 5%; PMT = $30; FV = $1,000; CPT PV = -$913.41
Therefore, the market price of the bond is $913.41
ANSWER:
B. A direct deduction from the face amount of the debt.
EXPLANATION:
To define An Unamortised bond you should know the meaning of these terms,
A) A PAR of a bond: this is referred to as the bond's value at maturity. That is the value of a bond when it matures.
B) A bond DISCOUNT refers to the the bond's excess of par value over its selling price. That is the difference between the par value and the amount the bond is sold.
And now an AMORTIZED BOND DISCOUNT is the balance of a bond discount that remains to be amortized by the issuing firm over the bond's life until it matures.
It is the difference between a Bond's value at maturity and the proceeds from the sale of the bond by the issuing company, less the portion that has already been amortized (written off in gradual increments) on the profit and loss statement.
It is usually reported on the balance sheet of the issuer as the Direct deduction from the face amount of the debt.
Answer:
the answer is fact check memo
Answer:
The consumer surplus will definitely increase.
Explanation:
The reason is that the manufacturers have purchased the sugar at a high price and now it is available at a lower price. So this means that the price of chocolate must decrease in the market if the price of material input is fallen. But the chocolate prices will take time to fall and as the result the customer is willing to pay lower prices but he is forced to pay more because the manufactured chocolates include sugar which was bought at a higher price. So the consumer surplus will increase.
