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3 years ago

On January 1, 2017, when the market interest rate was 14%, Luba Corporation issued bonds

Business

1 answer:

Anton [14]3 years ago

4 0

Answer:

the bond discount = face value - market value

market value = PV of face value + PV of coupon payments

PV of face value = $500,000 / (1 + 7%)²⁰ = $129,209.50

PV of coupon payments = $30,000 x 10.594 (PV annuity factor, 7%, 20 periods) = $317,820

market value = $447,029.50

January 1, 2017, bonds are issued at a discount

Dr Cash 447,029.50

Dr Discount on bonds payable 52,970.50

Cr Bonds payable 500,000

the discount amortization for first coupon payment = ($447,029.50 x 7%) - $30,000 = $31,292 - $30,000 = $1,292

July 1, 2017, first coupon payment

Dr Interest expense 31,292

Cr Cash 30,000

Cr Discount on bonds payable 1,292

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Answer:

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3 years ago

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Answer:

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3 years ago

Suppose that Xtel currently is selling at $66 per share. You buy 500 shares using $20,000 of your own money, borrowing the remai

hram777 [196]

Answer:

The percentage loss will be "-9.08%". The further explanation is given below.

Explanation:

The given values are:

Invested amount

= 20,000

Price of purchase

= $66

Total number of shares

= 500

The borrowed amount will be:

= $(500\times 66)-20000$

= $13,000$

When the price increase to 69.63, the gain will be:

= $69.63-66$

= $3.63$ ($)

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= $3.63\times 500$

= $1815$

Increase in percentage will be:

= $\frac{1815}{20,000}\times 100$

= $9.08$ %

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If the price declines toward a loss of 62,37 per share:

= $62.37-66$

= $-3.63$

Now,

The total loss will be:

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= $-1815$

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= $\frac{-1815}{15,000}$

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3 years ago

Question 5 of 12 An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies

Roman55 [17]

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This is further explained below.

<h3>What is an insurance policy?</h3>

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