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mars1129 [50]
3 years ago
14

At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $51,500 with a yie

ld to maturity of 6 percent. Given that she will not actually receive any interest payments until the bond matures in 8 years, how much interest income will she report this year assuming semiannual compounding of interest
Business
1 answer:
wolverine [178]3 years ago
5 0

Answer:

Angela's income interest is $772,500‬

Explanation:

Income interest at 1st Semiannual duration

Semi annual interest = $51,500*6%*(6/12)= $154,500

Income interest at 2nd Semiannual duration

Note New Principal for 2nd year will be =$51,500+$154,500= $206,000

Semi annual interest = ($51,500+$154,500)*6%*(6/12)= $618,000‬

There fore Total income = $154,500+$618,000‬= $772,500‬

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A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as ed
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The number of books that will be produced such that the costs from the two methods be the same is 4668 units.

From the complete question, the total cost of the first equation will be:

= 8.25x + 65054

The total cost for the second equation will be:

= 19.50x + 12539

Then, we'll equate both equations together and this will be:

8.25x + 65054 = 19.50x + 12539

Collect like terms

19.50x - 8.25x = 65054 - 12539

11.25x = 52515

Divide both side by 11.25

11.25x/11.25 = 52515/11.25

x = 4668 units.

Therefore, the breakeven unit will be 4668 units.

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5 0
3 years ago
Read 2 more answers
The following costs were incurred in May:
algol13

Answer:

d. $55,600

Explanation:

Direct Labor = $34,000

Manufacturing Overhead Cost = $21,600

Conversion Cost = Direct Labor + Manufacturing Overhead Cost

Conversion Cost = $34,000 + $21,600

Conversion Cost = $55,600

So, the conversion costs during the month totaled $55,600.

3 0
3 years ago
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate
MAXImum [283]

Answer:

The nominal interest rate which the bank will offer is of 10.24%

Explanation:

according to Irwin formula the bank will charge a nominal rate that ensures a real rate of 6% thus:

\frac{1+r_n}{1+ \theta} -1 =r_e

(1+r_e)(1+ \theta) -1 = r_n

1.06*1.04-1 = 0.1024 = 10.24%

8 0
3 years ago
If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would
Natasha2012 [34]

Answer: Market penetration

Explanation:

 The market penetration strategy is one of the type of alternative growth strategy in which it mainly focus on gaining the high marketing share by selling the products and various types of services in the market.

The main advantage of this strategy is that the products are quickly adopted in the market and we also gain some effective incentives.

The market penetration strategy focuses on the organization growth and selling the products to the existing customers.

Therefore, Market penetration strategy is the correct answer.

8 0
3 years ago
Depreciation of noncurrent operating assets is an accounting process for the purpose of?
klasskru [66]

Noncurrent Operating Asset Depreciation is a procedure used in accounting to reflect declining asset values on the balance sheet.

A tangible item's cost can be spread out over the period of its useful life using the accounting approach of depreciation. Depreciation indicates how much of an asset's worth has been expended. It makes it possible for companies to buy assets over a predetermined period of time and profit from those assets. The immediate cost of ownership is greatly lowered because businesses do not have to fully account for them in the year the assets are purchased. A company's profits can be significantly impacted by not accounting for depreciation. Long-term assets can also be depreciated by businesses for tax and accounting reasons.

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3 0
2 years ago
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