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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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You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how muc
makkiz [27]

Answer:

$112,807

Explanation:

To calculate the amount of money you borrowed, you have to use the formula to calculate the present value:

PV=FV/(1+r)^n

PV= pressent value

FV= future value= 647,514

r= rate= 6%

n= number of periods of time= 30

PV=647,514/(1+0.06)^30

PV=647,514/(1.06)^30

PV=647,514/5.74

PV=112,807

According to this, you originally borrowed $112,807 for this house.

5 0
4 years ago
Portfolio investment is defined as A. the diversification of purchasing shares in many companies in one country so that risk is
disa [49]

Answer:b

Explanation:

4 0
3 years ago
Vince is the owner of a popular restaurant. He hired a manager who takes care of the day-to-day operations of the restaurant and
notka56 [123]

Answer:

Line

Explanation:.In these type of organizations, a supervisor exercises direct supervision over a subordinate. Also, authority comes from the top-most person in the organization to the lowest ranked worker in these organizations.

4 0
3 years ago
Read 2 more answers
The emergency banking relief act helped solve the banking crisis by
max2010maxim [7]

Answer:

providing banks that the government deemed as "sound financial footings" an operating license.

Explanation:

The emergency banking relief act helped solve the banking crisis by providing banks that the government deemed as "sound financial footings" an operating license. This allowed the banks to reopen and continue business as well as providing the public with ease of mind and allowing them to slowly rebuild their trust on towards the banking system.

If you have any more questions feel free to ask away at Brainly.

6 0
3 years ago
Match the following terms to their definitions: 1. privatization 2. restructuring 3. agent 4. leveraged buyouts 5. underpricing
RUDIKE [14]

Answer:

1) UNDERWRITE involves the act of taking on any risk that might be related with the issue of a new security.

2. BEST EFFORTS is the responsibility of sharing a security without transferring the risk associated with the new issue from the company to the investors.

3. UNDERWRITING SYNDICATE involves a group of investors formed to share the risk of a security offering.

4.UNDER PRICING is the process of setting the price of a new security slightly below the market value to ensure a receptive sale.

5. AFTERMARKET is a secondary market where securities are traded after its initial offering to the public.

6.AGENT is one who sells or places an asset for another party.

7. SHELF REGISTRATION permits large companies to file one comprehensive statement with the Securities and Exchange Commission (SEC) outlining their financial plans for the next two years.

8. LEVERAGE BUYOUT occurs when either management or another investment group borrows the needed cash to rebuy all traded shares from the shareholders.

9. RESTRUCTURING involves the divisions and products are sold and assets redeployed into better yielding areas.

10. PRIVATIZATION is a situation Investors that take a company public, the investment bankers sell companies previously owned by governments.

8 0
3 years ago
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