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Wewaii [24]
3 years ago
12

Consider a $1000 bond that pays an annual interest rate of 8% and matures in two years. The prevailing interest rate has dropped

to 4%. Choose from the numbers to create the equation that will calculate the current price of this bond. Note that this bond will make two payments. Please place the earlier one on the left side of the plus sign.
Business
1 answer:
Anika [276]3 years ago
7 0

Answer:

Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2

Explanation:

The Coupon payment = 0.08 * 1000 = 80

The Payment at EOY 1 = 80

The Payment at EOY 2 = 80 + 1000 = 1080

market interest rate = 4%

Current bond price = 80 / (1+0.04)^1 + 1080 / (1+0.04)^2

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Sam was willing to contribute $20 this year to his local college radio station. However, after learning that the radio station h
sveticcg [70]

Answer:

The correct answer is d) The free-rider problem .

Explanation:

This term refers to a problem in economics where a person who is known as a stowaway, benefits from using a service or consuming a product without paying anything for it. In this case Kevin should contribute to the radio station, since regardless of whether what was expected in a given period has been raised, just being committed is enough to have the obligation to contribute for the maintenance of the station over time.

4 0
3 years ago
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
elixir [45]

Answer:

Given that,

Direct materials = $100,000

Direct labor = $125,000

Applied factory overhead for Department 1 = $150,000

Direct materials = $50,000

Direct labor = $60,000

Applied factory overhead for Department 2 = $70,000

Therefore, the journal entry is as follows:

Work in Process - Department 3 A/c Dr. $555,000

            To Work in Process - Department 2            $555,000

(To record the flow of costs into Department 3 during the period)

Workings:

Work in Process - Department 3:

= $100,000 + $125,000 +  $150,000 + $50,000 + $60,000 + $70,000

= $555,000

5 0
3 years ago
"1. When a T-shirt manufacturer states, ""We sell it only in black because that way we can buy plenty of black fabric and run ou
katrin2010 [14]

idk

Explanation:

i dont know also, idk, i dont know

4 0
3 years ago
Read 2 more answers
On January 15, the end of the first biweekly pay period of the year, North Company's payroll register showed that its employees
Elanso [62]

Answer:

Please check the images attached below

Explanation:

Salaries Payable = (Salariesexpense - Socialsecurity taxes - Medicaretaxes - Incometaxes - MedicalcareInsurance Education - Union dues)

=$28,000−$1,736−$406−$3,800−$678−$190

=$28,000−$6,810

=$21,190

Hence, the salaries payable are $21,190.

Compute the social security taxes using the equation as shown below:

\begin{array}{c}\\{\rm{Social security taxes}} = {\rm{FICA tax rate}} \times {\rm{Salaries expense}}\\\\ = 6.2\% \times \$ 28,000\\\\ = \$ 1,736\\\end{array}  

Socialsecuritytaxes=FICAtaxrate×Salariesexpense

=6.2%×$28,000

=$1,736

​  

Hence, social security taxes are $1,736.

Compute the Medicare taxes using the equation as shown below:

 

Medicaretaxes=Medicaretaxrate×Salariesexpense

=1.45%×$28,000

=$406

​  

Hence, Medicare taxes are $406.

​

4 0
2 years ago
If you put $7000 in a saving account that earns 2% interest for 10 years, how much will you have in
blondinia [14]

Answer:

1) 56,000

2) 9,950

3) 8,479

4) 25,500

Explanation:

1)20% of 70.000=56.000

2)5% of 10.000=9.950

3)21% of 10.500=8.479

4)15% of 30.000=25.500

4 0
3 years ago
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