Answer:
8.48%
Explanation:
Calculation to determine What must the coupon rate be on the bonds
First step is to find the coupon rate of the bond.
Coupon payment = $957 = C(PVIFA9.0%,16) + $1,000(PVIF9.0%,16)
Solving for the coupon payment will give us C= $84.83
Now let calculate the coupon rate using this formula
Coupon rate= Coupon payment/ Par value
Let plug in the formula
Coupon rate = $84.83 / $1,000
Coupon rate = .0848*100
Coupon rate =8.48%
Therefore the coupon rate on the bonds is 8.48%
Answer:
b. $600,000
Explanation:
The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.
The price that the company ACH pay by the product ($650,000) it's not at change on the price if not due to the payments term which is one year later, so the company ACH has to pay a financial cost because the payment will be made one year later.
The last step in making a personal budget is to reduce expenses in flexible categories. The correct option among all the options given in the question is option "B". Under normal circumstances, a person cannot make the adding up all sources of income as the last step. Then the expenses will not get added. The flexible expenses are expenses that can always be reduce or are not important expenses. The basis of making the budget is to reduce those unnecessary expenses. So the last step should always be to find ways to reduce the flexible or unwanted expenses.
Answer:
They must deposit $5,113,636.36.
Explanation:
Giving the following information:
Cash flow= $225,000
Interest rate= 4.4 percent
To determine the amount to be deposited today, we need to use the perpetual annuity formula:
PV= Cf/i
Cf= cash flow
PV= 225,000/0.044
PV= $5,113,636.36
They must deposit $5,113,636.36.
