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densk [106]
3 years ago
8

Nunavet Ocean Cruises sold an issue of 12-year ​$1,000 par bonds to build new ships. The bonds pay​ 4.85% interest, semi-annuall

y.​ Today's required rate of return is​ 9.7%. How much should these bonds sell for​ today? Round off to the nearest​ $1.
Business
1 answer:
frez [133]3 years ago
7 0

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  24.25  (1,000 face value x 4.85 bond rate / 2 )

time  24.00 (12 year 2 payment a year)

rate  0.04850 (current rate divide by 2 to get it annually)

24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\

PV $339.55

Then present value of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00 the face value of the bond

time   24.00

rate   0.04850

\frac{1000}{(1 + 0.0485)^{24} } = PV  

PV   320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity  $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

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Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distributi
loris [4]

Answer:

Beaver's total taxable income and federal income text paid as result of distribution is $500,000 and $105,000 respectively.

Explanation:

The computation of the taxable income and the federal income is shown below:

Taxable income = Taxable income + loss

                           = $500,000 + $0

                           = $500,000

Since the fair value is $20,000 is less than the mortgage on land i.e $25,000 so it would be a loss of $5,000 which would not be considered so we put the value zero.

And, the federal income equal to

= Taxable income × income tax rate

= $500,000 × 21%

= $105,000

4 0
3 years ago
A horse was galloping at a speed of 50km/h for the first 12 minutes. For the next x minutes, the horse became fatigued, and its
loris [4]

Answer:

16km Answer

see image for solution

8 0
3 years ago
Examples of current liabilities are all of the following except
Sladkaya [172]

Answer:

d. accounts receivable.

Explanation:

We know that

The current assets = Cash and cash equivalents + Short-term investments + Notes receivable + Inventories + Prepaid expenses and other related current assets

And, current liabilities comprise of

= Short-term note payable + Accounts payable + current portion of long-term debt

The duration of the current asset and the current liabilities within one year.

Therefore, the account receivable is not an example of current liabilities.

6 0
3 years ago
n 2010, the country of Vesey exported goods worth $312 billion and services worth $198 billion. It imported goods worth $525 bil
LuckyWell [14K]

Answer:

current account balance = $271.8 billion

Explanation:

given data

exported goods worth = $312 billion

exported services worth = $198 billion

imported goods worth =  $525 billion

imported services worth = $255 billion

sent famine relief to Africa = $1.2 billion

received = $3 billion

to find out

current account balance in Vesey

solution

we know that current account balance as

current account balance = total expenses - total revenue .............1

here

total expenses are = $525  + $255 + $3 = $783 billion

and total revenue = $312 + $198 +$1.2 = $511.2 billion

so from equation 1

current account balance = $783 billion - $511.2 billion

current account balance = $271.8 billion

7 0
3 years ago
Although most STEM careers require workers to earn bachelor's degrees, high school graduates can qualify for some STEM careers.
pogonyaev

Answer:

D.

Explanation:

7 0
3 years ago
Read 2 more answers
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