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klasskru [66]
3 years ago
14

A bond has a par value of $1,000, a current yield of 7.17 percent, and semiannual coupon payments. The bond is quoted at 104.68.

What is the amount of each coupon payment?
Business
1 answer:
RSB [31]3 years ago
7 0

Answer:

Each payment = $37.52778

Explanation:

Given:

Bond value = $1,000

Current yield = 7.17% = 0.0717

Bond quoted = 104.68%

Payment method = Semi-annual = 2 payment

Computation of annual coupon amount:

Current yield = Annual coupon / (Bond value × Bond quoted)

0.0717 = Annual coupon / ($1,000 × 104.68%)

0.0717 = Annual coupon / ($1,046.8)

Annual coupon = 0.0717 × $1,046.8

Annual coupon = $75.05556

Computation of each payment:

Each payment = Annual coupon amount / 2 payment

Each payment = $75.05556 / 2

Each payment = $37.52778

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Which of the following statements is true of absorption​ costing? A. It considers variable selling and administrative costs as p
Sonja [21]

Answer:

C. It considers fixed manufacturing overhead cost as product costs.

Explanation:

The statement that is true of absorption​ costing is that it considers fixed manufacturing overhead cost as product costs.

Absorption costing uses the concept of cost drivers to ascertain the quantum of fixed manufacturing overhead cost a product generates, and ties that fraction to the product as its own cost.

By so doing, what would ordinarily have been periodic costs that will be apportioned among products become fixed costs that are directly traceable to those products.

6 0
3 years ago
A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and
marysya [2.9K]

Answer: Please see explanation for answer

Explanation:

Journal entry to record sale of bonds

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Cash                                     $50,000,000

Bonds Payable                                                      $50,000,000

4 0
3 years ago
What role do values play in making ethical decisions?
Lubov Fominskaja [6]

Values play a central role in ethical decision making.It is because core values are so subjective, they will be relative to the individual who holds them. Not all individuals have the same core values and conflicts about them will often arise.

7 0
3 years ago
When researchers calculate a basketball star's net worth they are measuring the star's _____.
polet [3.4K]
The answer is letter b, income and the wealth. The net worth is a way of having to measure the over all asset of the individual in which his or her income as well as his or her wealth that he or she has or acquires. The answer is letter b.
6 0
3 years ago
Victor Rumsfeld Inc.'s dividend policy is under review by its board. Its projected capital budget is $2,000,000, its target capi
melomori [17]

Answer:

The multiple choices are

a.  $240,000

b. $228,000

c. $216,600

d.$205,770

e. $0

The correct option is E,$0

Explanation:

The funding required from equity is 40% of the projected capital budget of $2000,000 which is expected to be from the profit attributable to stockholders since new issue of shares is not contemplated.

In other words, dividends payable to shareholders is the net income less their counter funding of the project which is computed below:

residual dividends=net income-(equity%*capital outlay)

residual dividends=$300,000-(40%*$2000,000)

                               =$300,000-$800,000=$0

In essence the $300,000 is not even enough as funds expected from equity less alone paying excess as dividend

3 0
3 years ago
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