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3 years ago

6

You have an insurance policy with a $300 premium and a $500 deductible. how much should you expect to pay the insurance company

each month for coverage everfi module 7

1 answer:

alex41 [277]3 years ago

7 0

Answer: $300 hope this helps

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$1,000 par value zero-coupon bonds (ignore liquidity premiums).

Crazy boy [7]

10.70% - Option D

<u>Explanation:</u>

One-year interest rate one year from now:

$=(1+.2750)^{\wedge} 2 /(1+16 \%)-1$

$=1.275 * 1.275 / 0.16$

= 1.625625 divide by 0.16

=10.160

Therefore, an approximate answer is 10.70%

Respect Maturity (YTM) – in any case alluded to as recovery or book yield – is the theoretical pace of return or loan cost of a fixed-rate security, for example, a security. The YTM depends on the conviction or understanding that a financial specialist buys the security at the present market cost and holds it until the security has developed (arrived at its full worth), and that all premium and coupon installments are made in a convenient manner.

7 0

3 years ago

On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 5 years. The contract rat

Elenna [48]

Answer:

The journal entry for the interest payment is shown below:

Explanation:

Interest Expense A/c........................Dr $16,098

Premium on bonds payable A/c....Dr $952

To Cash A/c............................Cr $17,050

Working Note:

Interest expense = Bonds sale value × Market rate

= $321,964 × 5%

= $16,098

The market rate will be:

= 10 / 2

= 5%

Because it is paid semiannually, so rate is divided by 2.

Cash = Par value × Contract rate

= $310,000 × 5.5%

= $17,050

The contract rate will be:

= 11 / 2

= 5.5%

Because it is paid semiannually, so rate is divided by 2.

3 0

3 years ago

When military spending fell dramatically at the end of the cold war this was referred to as a?

olga_2 [115]

The United states has the massive spending when it comes to the money they have spent buying the things that they would need if they are going to engage on a fight or worse, on a war. This spending is concentrate in North America and of course the Europe. That was when a major feel down struck them.

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4 years ago

Suppose you have a monthly entertainment budget that you use to rent movies and purchase cds. you currently use your income to r

Lelu [443]

You are not maximizing utility, because the marginal utility per dollar spent renting movies is not equal to the marginal utility per dollar spent on CDs. We will maximizing utility when the consumers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility.

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4 years ago

On January 1, Boston Enterprises issues bonds that have a $1,300,000 par value, mature in 20 years, and pay 7% interest semiannu

MariettaO [177]

Answer:

1. $45,500

2. Journal entries

3. Journal entries

Explanation:

The Interest amount can be calculated by multiplying the face value of bonds with annual interest and the time period. Journal entries are given below

Requirement 1 (Interest amount)

Interest amount = Face value of bond x annual interest rate x 6/12

Interest amount = 1,300,000 x 7% x 6/12

Interest amount = $45,500

Requirement 2 (Journal entries to record issuance of bond and interest expense)

1 Jan (issuance of bond payable )

DEBIT CREDIT

Cash 1,300,000

Bonds payable 1,300,000

30 June (interest expense recorded)

DEBIT CREDIT

Cash 45,500

Bonds payable 45,500

31 Dec (interest expense recorded)

DEBIT CREDIT

Cash 45,500

Bonds payable 45,500

Requirement 3 (Journal entry for issuance assuming bonds are issued at a.96 b.104)

<u>At 96</u>

DEBIT CREDIT

Cash(1,300,000 x 96%) 1,248,000

Discount(1,300,000 - 1248,000) 52,000

Bonds payable 1,300,000

<u>At 104</u>

DEBIT CREDIT

Cash(1,300,000 x 104%) 1,352,000

Premium (1,300,000 - 1248,000) 52,000

Bonds payable 1,300,000

8 0

3 years ago