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cluponka [151]
3 years ago
10

Bond prices depend on the market rate of​ interest, stated rate of​ interest, and time. Determine whether the following bonds pa

yable will be issued at face​ value, at a​ premium, or at a​ discount:a.The market interest rate is​ 8%. Idaho issues bonds payable with a stated rate of​ 7.75%.b.Austin issued​ 9% bonds payable when the market interest rate was​ 8.25%.c.​Cleveland's Cars issued​ 10% bonds when the market interest rate was​ 10%.d.​Atlanta's Tourism issued bonds payable that pay the stated interest rate of​ 8.5%. At​ issuance, the market interest rate was​ 10.25%.
Business
1 answer:
Aleksandr-060686 [28]3 years ago
8 0

Answer:

Determine whether the following bonds payable will be issued at face​ value, at a​ premium, or at a​ discount:

a.The market interest rate is​ 8%. Idaho issues bonds payable with a stated rate of​ 7.75%.

  • Bonds issued at discount because market rate is higher than the bond's coupon rate.

b.Austin issued​ 9% bonds payable when the market interest rate was​ 8.25%.

  • Bonds issued at premium because market rate is lower than the bond's coupon rate.

c.​Cleveland's Cars issued​ 10% bonds when the market interest rate was​ 10%.

  • Bonds issued at par because bond's coupon rate is equal to the market rate.

d.​Atlanta's Tourism issued bonds payable that pay the stated interest rate of​ 8.5%. At​ issuance, the market interest rate was​ 10.25%.

  • Bonds issued at discount because market rate is higher than the bond's coupon rate.

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Which of the following accounts is not closed? Question 3 options: A. Depreciation expense B. Dividends C. Service revenue D. Ac
larisa [96]

Answer:

The answer is D. Accumulated depreciation

Explanation:

Accumulated depreciation is the sum total of the depreciation recorded for certain assets.

6 0
3 years ago
A sporting equipment store expects to purchase $8,700 of ski boots in October. The store had $2,300 of ski boots in merchandise
likoan [24]

Answer:

The expected cost of goods sold for the month of October would be $9700

Explanation:

Formula for taking out cost of goods sold  (October) -

              BEGINNING INVENTORY

                               +

              PURCHASING  MADE

                               +

              ENDING INVENTORY

Available information -  beginning inventory = $2300

                                       purchase = $8700

                                       ending inventory =  $1300

Putting the values in the formula -

= $2300 + $8700 - $1300

= $9700

5 0
3 years ago
Seventeen years ago, Susan designed a corrugated steel culvert for a rural road. Her work was accepted and paid for by the count
Lemur [1.5K]

Answer:

C. Statute of limitations.

Explanation:

Statute of limitations are laws which states the time limit of when legal proceedings must be initiated between concerned parties from the date in which alleged offence was perpetrated.

In statue of limitations, the time limit for somebody is wronged to initiate legal action is not fixed in all jurisdiction. It means that depending on the nature of the alleged offense under statute of limitation, time allowed to institute legal actions varies.

Example of statue of limitation is that for certain states, the time limit to initiate legal case say on fraud is two years. It means that one must bring up the case in a court of law within the stipulated two years period. Once the two year grace elapse, one can no longer sue for fraud in the court of law.

Although there is no time limit for certain offence like murder case, sex offence with minor etc.

As in the case above, the judge threw away the case because according to the law of statute of limitation, a party that is wronged can only sue the wrong doer within the stipulated time as spelt out within the jurisdiction where the alleged offence was committed.

4 0
3 years ago
Stadford Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm
lesya692 [45]

Answer: Capital structure                            

Explanation: In simple words, capital structure refers to the proportion of different securities that an organisation uses as a combination to fund its operations. In other words, the amount of debt and equity in total capital in hand of the business is termed as capital structure.

Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.

The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.

8 0
3 years ago
You are planning a special wedding three years from today. You don't know who your spouse will be but you do know that you are s
Novay_Z [31]

Answer:

Total amount collected = $94,400

Explanation:

Given:

1st investment = $25,000

2nd Investment = $35,000

3rd investment = $45,000

Computation of total amount:

Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1+r)^1} +\frac{45,000}{(1+r)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1+0.07)^1} +\frac{45,000}{(1+0.07)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1.07)^1} +\frac{45,000}{(1.07)^3} \\\\Total\ amount = \frac{25,000}{1} +\frac{35,000}{(1.07)} +\frac{45,000}{(1.2250)} \\\\Total\ amount = 25,000 +32,710.28 +36,734.6939 \\\\Total\ amount = 94,444 \\\\

Total amount collected = $94,400

3 0
3 years ago
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