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stiv31 [10]
3 years ago
6

A $1000 par value bond with 5 years to maturity and a 6% coupon has a yield to maturity of 8%. Interest is paid semiannually. Ca

lculate the current price of the bond. Group of answer choices $1579.46 $918.89 $789.29 $1000.00 $743.29

Business
1 answer:
Katarina [22]3 years ago
7 0

Answer:

$918.89

Explanation:

For computing the current price of the bond we need to apply the present value formula i.e to be shown in the attachment

Given that,  

Future value = $1,000

Rate of interest = 8%  ÷ 2 = 4%

NPER = 5 years × 2 = 10 years

PMT = $1,000 × 6% ÷ 2 = $30

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the current price of the bond is $918.89

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Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is Dece
Lyrx [107]

Answer:

Adjusting entries

Depreciation on the office equipment for the year is $10,300.

Dr Depreciation expense 10,300

    Cr Accumulated depreciation 10,300

Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.

Dr Wages expense 900

    Cr Wages payable 900

On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.

Dr Interest expense 1,518

    Cr Interest payable 1,518

On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.

Dr Interest receivable 1,373

    Cr Interest revenue 1,373

On April 1, 2021, the company paid an insurance company $6,600 for a two-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.

Dr Insurance expense 2,475

    Cr Prepaid insurance 2,475

$560 of supplies remained on hand at December 31, 2021.

Dr Supplies expense 1,240

    Cr Supplies 1,240

A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.

No entry is required

On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.

Dr Rent expense 600

    Cr Prepaid rent 600

             Pastina Company

             Income Statement

For the Year Ended December 31, 2021

Sales revenue $149,000

Interest revenue $1,373

Cost of goods sold -$73,000

Salaries expense -$20,100

Rent expense -$11,900

Depreciation expense -$10,300

Interest expense -$1,518

Supplies expense -$2,640

Insurance expense -$2,475

Advertising expense -$3,300

Net income = $25,140

             Pastina Company

               Balance Sheet

For the Year Ended December 31, 2021

Assets

Current assets:

Cash $32,000

Accounts receivable $40,600

Supplies $560

Inventory $60,600

Notes receivable $20,600

Interest receivable $1,373

Prepaid rent $600

Prepaid insurance $4,125

Total current assets: $160,458

Non-current assets:

Office equipment $82,400

Accumulated depreciation $41,200

Total non-current assets: $41,200

Total assets: $201,658

Liabilities and stockholders' equity

Current liabilities:

Accounts payable $31,600

Wages payable $900

Interest payable $1,518

Deferred sales revenue $2,300

Total current liabilities: $36,318

Long term debt:

Notes payable $50,600

Total long term debt: $50,600

Total liabilities: $86,918

Stockholders' equity:

Common stock $64,200

Retained earnings $50,540

Total stockholders' equity: $114,740

Total liabilities and stockholders' equity: $201,658

retained earnings = previous balance + net income - dividends = $30,000 + $25,140 - $4,600 = $50,540

                          Pastina Company

             Statement of Shareholders’ Equity

          For the Year Ended December 31, 2021

Balance on January 1: Common stock            $64,200

Balance on January 1: Retained earnings       $30,000

Net income 2021                                                $25,140

- Dividends                                                         ($4,600)

Subtotal                                                              $50,540

Balance on December 31: Common stock      $64,200

Balance on December 31: Retained earnings $50,540

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(Economics) Under what circumstances would corn be considered a commodity?
fgiga [73]

Answer:

C. If you traded it.

Explanation:

3 0
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Giving consumers larger quantities at a low price would help taco bell regain _____.
lisov135 [29]
The answer that best fits the blank provided above is this: A COMPETITIVE ADVANTAGE. When we say competitive advantage, this is when this fast food restaurant gains that position that is ahead of the rest. This is because of their low prices for larger quantities. Hope this helps.
4 0
3 years ago
The financial ratio that measures the accounting profit per dollar of book equity is referred to as the:
WINSTONCH [101]

Answer:

Return on equity.

Explanation:

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The financial ratio that measures the accounting profit per dollar of book equity is referred to as the return on equity. It is calculated by dividing the net income with the shareholder's equity at a specific period of time

3 0
3 years ago
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inysia [295]

Answer:

three

Explanation:

The Truth-in-Lending Act (TILA) applies to home loans. It requires lenders to disclose all costs related to a home loan, provides rescission rights for some transactions, and impose restrictions on home equity credits. But the TILA cannot set the interest rates or other fees charged by the lender, it only requires the lender to disclose the complete information, e.g. APR, monthly payments and amount financed.

3 0
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