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
PSYCHO15rus [73]
3 years ago
6

A company issues 9%, 5-year bonds with a par value of $140,000 on January 1 at a price of $145,678, when the market rate of inte

rest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:
Business
1 answer:
deff fn [24]3 years ago
4 0

Answer:

Semi annual interest payment = $6300

Explanation:

The interest payment of bond is calculated based on the coupon rate of the bond. The coupon rate is the interest rate carried by the bond. This rate can be different from the market interest rate and bond's yield to maturity. The interest payment is calculated by multiplying the coupon rate by the face value of the bond.

Annual interest payment = Coupon rate * Par value

For a semi annual bond, we calculate the interest payment in the same way as the annual bond. However, we just have to adjust the coupon rate for the semi annual period. We multiply the coupon rate by 6/12 as it is a semi annual payment.

Semi annual interest payment = Coupon rate * 6/12 *  Par Value

Semi annual interest payment = 0.09 * 6/12 * 140000

Semi annual interest payment = $6300

You might be interested in
On June​ 30, Coral, Inc. finished Job 750 with total job costs of $ 4 comma 400​, and transferred the costs to Finished Goods In
Grace [21]

Answer:

The correct option is D,debit Cost of Goods Sold $4,100 and credit Finished Goods Inventory $4,100

Explanation:

The total job costs is $4,100 not $4,400 ,which then means that the cost of goods sold is $4,100.

The appropriate entry for such sale is to credit merchandise inventory since the inventory reduces due to such sale being made while cost of goods sold is debited with the same amount.

In a nutshell, the correct option is D,

4 0
3 years ago
suppose that due to unfavorable growing conditions, this year’s global coffee crop was unusually small. what can we assume about
nekit [7.7K]

The short-run price elasticity of demand will be inelastic and the short-run price elasticity of supply will be inelastic.

Elasticity of demand measures the relationship that exists between price and quantity demanded.

Elasticity of supply measures how quantity supplied changes when there is a change in the price of a good.

<u><em>Types of elasticity.</em></u>

  1. Elastic demand (supply): This means that demand (supply) is sensitive to price changes
  2. Inelastic demand (supply): this means that demand (supply) does not respond to price changes. The coefficient of elasticity is less than one.
  3. Unit elastic demand (supply): demand (supply) changes in equal proportion. The coefficient of elasticity is equal to one.

<em><u>Factors that affect elasticity </u></em>

  1. The number of substitutes the good has: the more substitutes the good has, the more elastic demand is.  
  2. The length of time: demand (supply) is inelastic in the short run. In the short run, producers (consumers) do not have enough time to find suitable substitutes.  In the long run, producers would have more time to search for suitable substitutes or shift to the production of other goods when compared with the short-run.
  3. Ease of entry or exit into an industry: the more easy it is for firms to enter into an industry, the more elastic supply would be.  

To learn more about elasticity of demand, please check:

7 0
3 years ago
Explain in detail two engagments. ASAP
dexar [7]

Answer:

easy a

Explanation:

easy a

3 0
3 years ago
TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc
alexandr402 [8]

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = \frac{45,000}{2,500} = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

8 0
3 years ago
In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on mon
german

Answer:

The existing state of American economy must be declared earlier respondent the interrogation.

The U.S. financial position is vigorous in 2017.The value rate is in its perfect vary i.e., 2.4 (2-3%).Joblessness is at its ordinary proportion and there isn't an excessive amount of rise or decrease. Conversely, the value is predicted to descent to a pair of 2.1% in 2018 and 2.0 in 2019. Drop in value would cause decrease in GDP and growth in state.

To avoid this drop I will be able to inscribe to manager of Federal Reserve Bank to cut back the rate (expansionary financial policy).Federal reserve will try this by shopping for bonds. Once Federal Reserve purchases bonds the money offer increases and rate decreases. As rate decreases mixture demand and financial gain increases. With escalation in financial gain and mixture demand the value wouldn't decrease in 2018 and 2019.

I would not recommend an expansionary economic policy as a result of it increases the rate yet and thus results in situation out.

6 0
3 years ago
Other questions:
  • The compa-ratio: select one:
    5·1 answer
  • How does increasing the slope of land affect soil formation?
    7·1 answer
  • Why does mercedes oil change cost so much?
    12·1 answer
  • "how does one define intelligence?" is a question that would be of particular interest to ____________________.
    6·1 answer
  • من الامثلة على الازمات المادية الملموسة في المنظمات​
    6·1 answer
  • Which of the following is the best definition of marketing?
    9·2 answers
  • Find the present value that will grow to $45,000 if interest is 3.6% compounded monthly for 1 year.
    12·1 answer
  • the 360 degree feedback performance appraisal system tries to improve performance ratings by forcing managers to :
    9·1 answer
  • Please help economics
    13·2 answers
  • What effect did the cotton gin have on the south’s economy?.
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!