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horrorfan [7]
3 years ago
7

Annapolis Company purchased a $1,000, 6%, 5-year bond at 97 and held it to maturity. The straight line method of amortization is

used for both premiums & discounts. What is the net cash received over the life of the bond investment? (all money received minus all money paid, round to nearest whole dollar)
Business
1 answer:
Roman55 [17]3 years ago
5 0

Answer: $330

Explanation:

The Net cash received is the Total Money received minus the Total money paid.

The total money paid is calculated as such,

= $1,000 x 97%( this a DISCOUNT bond meaning that it was sold for less than Par. This number signifies how much in percentage of Par it was purchased for)

= $970

$970 is the Total Amount paid.

The Total Amount Received would be,

= Principle on Maturity + Interest for 5 years

= 1,000 + 1,000(0.06) * 5 years

= $1,300

Net Cash Received is therefore,

= Total Amount Received - Total Amount Paid

= 1,300 - 970

= $330

$330 is the net cash received over the life of the bond investment.

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4 0
3 years ago
Read 2 more answers
Which of the following companies has the lowest degree of leverage?
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The firm with a 20% Debt and 80% Equity has the lowest degree of leverage.

<h3>What is a degree of leverage?</h3>

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2 years ago
Employees whose values match the values of the organization they work for generally ________________ than employees whose values
Sholpan [36]

Answer:

Employees whose values match the values of the organization they work for generally SHOW MORE COMMITMENT TO THEIR JOBS than employees whose values don't match the organization.

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The way people behave is deeply rooted in their values, when employees share their company's values, they make more informed decisions and are more committed to their jobs.

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3 years ago
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MrMuchimi
I believe that the answer to the question provided above is that <span> households would change their saving behavior enough in response to this to make a difference, since everyone has their choice of saving or not.</span>
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