1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
... you purchased a soda or
Ann [662]

Answer:what's the price?

Explanation:

3 0
3 years ago
Read 2 more answers
Value-stream mapping:
Darina [25.2K]
Examines the supply chain to determine where value is added
7 0
3 years ago
Marcy has an 85% average in the class going into the final exam that is worth 30% of the grade. If Marcy makes a 100% on the fin
vitfil [10]

Answer:

89.5%

Explanation:

If Marcy final exams is worth 30% of the grade, then (100 - 30)% must be for others such as quizzes, assignments, and CA

Her final score therefore = ((85/100) × 70%) + 30% since she made 100% in her final exams = 59.5 % + 30% = 89.5%

6 0
3 years ago
Consider a bond with the following characteristics. Par: $1,000 Two coupon payments per year (i.e., coupons are paid semi-annual
MAXImum [283]

Answer:

The new price of the bond is $928.94

Explanation:

Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.

Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.

As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.

Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30

Number of semiannual periods till maturity = 10 * 2 = 20 periods

New market interest rate = 6 + 1 = 7% annual

New semi annual market interest rate = 7% / 2 = 3.5%

Price of bond =  30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20

Price of bond = $928.938 rounded off to $928.94

We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.

5 0
3 years ago
Fitfabfun, trunk club, and naturebox represent a social media trend for the future. What change does this represent?
wel

This represents online and subscription-based personal shopping.

Fitfabfun, Trunk Club, and Naturebox offer their services on a subscription basis and as written this represents the trend of social media in the future and this represents online and subscription-based personal shopping.

The main qualifications of an online shopper are the physical strength to move and lift items during the shift and the ability to process orders with a high level of accuracy. Employers prefer applicants with customer service, hospitality, retail, or grocery experience.

An online personal shopper is a retailer who helps customers shop. Individual buyers who work in the fashion industry typically focus on selling clothing and accessories and often survey their customers before purchasing an item to better understand their personal styles and preferences.

Disclaimer: Learn more about online shopping  here

brainly.com/question/3988691

#SPJ4

7 0
2 years ago
Other questions:
  • 1. pasar la aspiradora 2. arreglar la sala 3. barrer el sótano 4. lavar la cafetera 5. no ensuciar el piso de la cocina
    13·1 answer
  • The Company is experiencing an increase in competition, and at the same time they are building more production facilities in Sou
    6·1 answer
  • On November​ 1, 2018, Arch Services issued $ 337 comma 000 of eight minus year bonds with a stated rate of 15​% at par. Interest
    12·1 answer
  • On June 30, Paisley Party Planners had a $35,000 balance in Accounts Receivable and a $3.252 credit balance in Allowance for Unc
    13·1 answer
  • What is the purpose of tax-deferred retirement accounts?
    10·1 answer
  • Zach wants to take his family on a cruise in 4 years and he estimates the cost of the cruise will be $16,500. How much money sho
    7·1 answer
  • Lowden Company low and high level of activity last year was 40,000 units produced in June and 120,000 units produced in November
    7·1 answer
  • A buyer entered into a written contract with a seller to purchase his commercial property for $100,000. The contract did not spe
    12·1 answer
  • ___________ incorporation is defined as extending protections from the Bill of Rights to the state governments, one right at a t
    15·1 answer
  • Folger Group pays its executives short-term incentives for meeting financial targets. What could be included in this incentive p
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!