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Bas_tet [7]
3 years ago
15

A company issues 8% bonds with a par value of $190,000 at par on January 1. The market rate on the date of issuance was 7%. The

bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:
Business
1 answer:
cluponka [151]3 years ago
7 0

Answer:

$7,600

Explanation:

The computation of cash paid on July 1 to the bondholders is shown below:-

cash paid on July 1 to the bondholders = Par Value × Semi annual coupon rate

= $190,000 × 6 months ÷ 12 months × 8%

= $190,000 × 0.5 × 0.08

= $7,600

We considered the 6 months as semi-annually is mentioned in the question

Therefore for computing the cash paid on July 1 to the bondholders we simply applied the above formula.

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6 0
3 years ago
31. People might withdraw money from interest-bearing accounts,
andreev551 [17]

Answer:

The correct answer is D. People might withdraw money from interest-bearing accounts, making the interest rate rise, if there is a shortage in the money market.

Explanation:

In case of a shortage of money in the economy, where people who need to consume and produce do not have immediate liquid money to carry out their economic activities, individuals will withdraw the money invested in their accounts to have cash to cover their immediate needs. Thus, the level of money in circulation will increase, but at the same time the liquidity of investment accounts will fall, with which banks will tend to raise interest rates to recover investors and therefore cover the losses in their accounts.

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4 years ago
For a monopolist facing this demand curve, the profit-maximizing quantity is ______ and the profit-maximizing price is ______.
hram777 [196]

For a monopolist facing this demand curve, the profit-maximizing quantity is 50 and the profit-maximizing price is $2.

The curve is a payment card that aggregates multiple payment cards via a companion mobile app, allowing users to pay and withdraw from one card. You can 'change the bank card you paid with after each transaction is completed.

The curve allows you to change the card used for a particular purchase 30 days after purchase. This is useful if you accidentally use the wrong card or need to manage your credit limit.

In a simple closed curve, the shape is closed by lines or curves. Triangles, squares, circles, etc. are examples of closed curves. A curve that has the same start and end points and does not intersect is called a simple closed curve. A circle is a simple closed curve.

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6 0
2 years ago
Green Corporation reported pretax book income of $1,024,000. During the current year, the net reserve for warranties increased b
Goshia [24]

Answer:

92.15%

Explanation:

Calculation for Green's cash tax rate

First step is to calculate the taxes payable

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Taxes payable=$943,600

Now let calculate the cash tax rate

Using this formula

Cash tax rate=Taxes payable/Pretax book income

Let plug in the formula

Cash tax rate=$943,600/$1,024,000

Cash tax rate=0.9215*100

Cash tax rate=92.15%

Therefore the Cash tax rate is 92.15%

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3 years ago
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Julli [10]

When installing its own ERP software and databases on the cloud hardware, it is most likely using the PaaS or also known as the Platform as a Service in which is a category that focuses on services in cloud computing that has benefits for customers as this allows them to manage their applications.

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3 years ago
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