Answer:
b. greater than face value
Explanation:
To find out the how much is selling amount, first we have to do the calculations which are shown below
The computation of the value of the bond is shown below:
= Present value of interest + Present value of full and final payment
where,
In semi annually, the rate of interest is divided by 2 and the time period is double
Present value of interest equals to
= $10,000 × 12% × 8.5136
= $10,216.32
The 7.36009 is a PVAF Refer to the PVAF table
And, the Present value of maturity equals to
= $10,000 × 0.1486
= $1,486
The Present value factor is computed below:
= 1÷( 1 + rate)^time
=1÷(1 + 0.10)^20
Now put these values to the above formula
So, the value would equal to
= $10,216.32 + $1,486
= $11702.32 approx
Answer:
a) In compliance with the IFRS
Explanation:
Since in the question it is mentioned that The financial statement of kansas ltd would be authorized by the management and auditors as on Feb 15 fpr issuance. On Feb 20 it settled as a plaintiff a 5 million euro lawsuit. Now the CFO of the company have make the second decision regarding the financial statement presentation in which he decides not to record this settlement so here is in compliance with the IFRS
Therefore the option A is correct
Answer:
$0.10 is the correct answer.
Explanation:
Answer: $337,800
Explanation:
Cashflow is constant so is an annuity.
The Present value of the Investment;
= Present Value of Cashflow - Investment cost
= (220,000 * Present value interest factor of an annuity, 5 years, 9% ) - 518,000
= (220,000 * 3.89) - 518,000
= 855,800 - 518,000
= $337,800
