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galben [10]
3 years ago
11

Adonis Corporation issued 10-year, 7% bonds with a par value of $220,000. Interest is paid semiannually. The market rate on the

issue date was 6%. Adonis received $236,371 in cash proceeds. Which of the following statements is true?
a. Adidas must pay $220,000 at maturity plus 20 interest payments of $6,600 each.
b. Adidas must pay $236,371 at maturity and no interest payments.
c. Adidas must pay $220,000 at maturity plus 20 interest payments of $7,700 each.
d. Adidas must pay $220,000 at maturity and no interest payments.
e. Adidas must pay $236,371 at maturity plus 20 interest payments of $7,700 each.
Business
1 answer:
san4es73 [151]3 years ago
8 0

Answer:

The answer is C

Explanation:

The interest payment is semiannual, meaning it pays interest twice in a year.

Adonis corporation issued a 10-year bond. Since the interest payment is paid twice a year, the number of periods the interest will paid is 20 times(10 years x 2).

And interest to paid is:

$220,000 x 7%

Annual interest paid is $15,400

Since it is semiannual, interest payment will be $7,700($15,400 ÷ 2)

The principal payment at maturity is $220,000. Par value means face value at maturity or principal value at maturity.

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Kana is a single wage earner with no dependents and taxable income of $205,000 in 2018. Her 2017 taxable income was $155,000 and
garri49 [273]

Answer:

$47439.50

Explanation:

For a single tax payer if your taxable income range is $200,000 - $500,000 then your income tax is $45,689.50 + 35% of amount over $200,000 of taxable income.

Income tax liability = $45689.50+{ 205000-200000)×35%}

$45689.50+(5000×35/100)

$45689.50+(5000×0.35)

$45689.50+1750

= $47439.50

The income tax liability will be $47439.50

5 0
3 years ago
Suppose that the federal reserve decides to decrease the money supply with a $300 sale of treasury bills. Complete the tables th
ANEK [815]

The monetary base is a liability, whereas Treasury notes are assets.

tables that represent the financial position of the federal reserve and commercial banks after this open-market operation:

A $ 300, B $ 300, C $ -300, D $ 300

a negative sign use for reduced values.

<h3>What do we mean by asset?</h3>

A resource having economic worth that a person, business, or nation owns or manages with the hope that it will someday be useful is referred to as an asset. A company's balance sheet lists assets. They are acquired or produced to raise a company's value or improve the operations of the company. Physical commodities like equipment, real estate, raw materials, and inventories are considered assets. Intangible objects like patents, royalties, and other forms of intellectual property are also considered assets.

To know more about asset visit:

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#SPJ4

3 0
1 year ago
Bonds are a form of ________, with bond prices and interest rates that move in _________ . a. equity; the same direction b. equi
forsale [732]

Answer:

(d) debt; opposite direction

Explanation:

Bonds or debentures represent fixed interest bearing instruments issued by corporates to raise long term funds i.e usually greater than 1 year repayable after a fixed duration.

Bonds could be of various forms such as zero coupon bonds, deep discount bonds, face value bonds etc

The common aspect of all being bonds represent debt which a corporation owes which must be repaid after a fixed duration. Also bonds demand periodic interest payments i.e fixed obligation which cannot be refused by the issuer company.

There is an inverse relationship between bond prices and market interest rates.

Reason : This is because if a higher interest rate prevails in the market than the coupon rate offered by the issuer, the issuer will have to reduce the price of it's bonds so as to make them attractive else investors would rather invest in other bonds in the market offering a higher rate of return.

7 0
3 years ago
True or False. Companies typically require that systems analysts have a college degree in information systems, computer science,
olga_2 [115]

Answer:

True (at least most of the time)

Ideally companies will require their systems analysts to have a college degree in information systems, computer science, business, or a closely related field.

But sometimes the demand for people with a degree in computer science or information systems is much larger than the supply, then many companies go directly to the colleges and hire students who haven't graduated yet.

I know this since a few years ago a local university issued a public statement about this issue since less that 30% of their students (in computer related fields) actually graduated. Most of the students were hired by Intel, IBM and HP during their third college year and they dropped out. Of course the students left because they were offered high salaries, imagine if you are 20 or 21 years old and a huge corporation offers you over $70,000 a year. I'm not sure that this is still happening, but I doubt it has changed.

8 0
3 years ago
Martinez Corporation owns a patent that has a carrying amount of $310,000. Martinez expects future net cash flows from this pate
meriva

Answer:

Please find the detailed answer as follows:

Explanation:

Step 1. Given information.

Carrying amount 310.000

Fair Value 160.000

Step 2. Formulas needed to solve the exercise.

Impairment loss = Carrying value - Fair Value

Step 3. Calculation.

Impairment loss = $310.000 - $116.000 = $194.000.

Step 4. Solution.

The carrying amount of $310.000 > fair value of $160.000. To measure the impairment loss, just do CV-FV. hence $310.000 - $116.000 = $194.000.

Loss on impairment $194.000

Patent $194.000

6 0
3 years ago
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