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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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School rules and government rules are very similar, some similarity are no steeling and drugs and an average high school with no rules would be chaotic. 
7 0
3 years ago
Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 percen
Bezzdna [24]

Answer:

13.02%

Explanation:

Debt = 30% and Common stock = 70%

Cost of equity is 16% and debt is 8%

Tax is 24%

WACC = Cost of equity*Weight of equity + After tax cost of debt*Weight of debt

WACC = (0.16*0.70) + (0.08*(1-0.24)*0.30)

WACC = 0.112 + 0.01824

WACC = 0.13024

WACC = 13.02%

So, the the company's WACC is 13.02%

5 0
3 years ago
Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Index was 177.1 (using
erma4kov [3.2K]

<em>Answer</em>:

<u>5,692.83</u> 3.

Explanation:

($10,082 billion/177.1) x 100 = 5,692.83

Remember the real GDP takes into account the value of the total number of goods and services produced by a country in a given year, while taking the effect of inflation into account.

Because of inflation the consumer price index data is used in the calculation to find the change or deflation that has occurred.

5 0
3 years ago
Read 2 more answers
In a within-groups design, each participant experiences all levels of the –. There are two types of this design. The first is th
kati45 [8]

In a within-groups design, there are two types of this design which are:

  • The repeated-measures design
  • The concurrent-measures design

<h3>What is  within-groups design?</h3>

A within-groups design is known to be a kind of an experimental design that is one where each participant is said to often experiences the total levels of the independent variable.

Note that there are two types of this design which is the repeated-measures design whose role is to measure or one  where participants are said to be opened to a lot of levels of the independent variable and they are known to be tested on the dependent variable after every exposure.

The second is said to be the concurrent-measures design and this is one where participants are said to communicate with the different levels of the independent variable in a simultaneous way..

Hence, In a within-groups design, there are two types of this design which are:

  • The repeated-measures design
  • The concurrent-measures design

Learn more about concurrent-measures design  from

brainly.com/question/25662476

#SPJ1

8 0
2 years ago
Your book describes the increase in the money supply as being analogous to giving people more money. If the output of goods and
SOVA2 [1]

Answer:

<em>Purchasing power parity (PPP): </em>The principle suggests that if the purchasing powers are the same in two different countries, their exchange rates would be in equilibrium.

<em>Happening:</em> When inflation occurs in the US and it occurs more rapidly than in other nations, the currency, the dollar, will be less attractive to other nations. This means that the dollar's exchange rate with the currency of another nation will increase.

Explanation:

Suppose the rate of exchange between pound and dollar is 1 pound= 1.5 dollar before inflation. When inflation happens it may be 1 pound= 2 dollars.

If it has greater buying power, the currency will be demanded more. The US dollar was more requested before inflation, as 1 pound is spent on buying just $1.5. When inflation occurs, the dollar's buying power goes down and it gets less needed. 1 pound is already being spent on that time but to buy more dollars, 2 dollars.

4 0
3 years ago
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