Estimating Uncollectible Accounts and Reporting Accounts Receivable LaFond Company analyzes its accounts receivable at December
1 answer:
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Answer:
Explanation:
We solve by first, getting the quota Horatio pays on his loan:
PV 12,450
time: 10 yearss x 12 months per year = 120
monthly rate: 7.3% / 12 = 0.006083333
C $ 146.487
Now, we miltiply the quota by the quantity of payment ans subtract the principal to get the amount of interest paid:
quota times quantity of monthly payment: total amount paid
less principal: interest paid.
146.49 x 120 - 12,450 = 5,128,80
Answer:
total rate of return on the Bond = 9.40%
Explanation:
given data
coupon bonds = 5.8%
bonds price = $1,030
maturity time = 14 year
required return on the bonds = 5.1 percent
solution
we know here market price of the bond is Present Value of Coupon Payments + Present face Value
so that face Valueof bond = $1,000
and here annual Coupon Amount will be
annual coupon amount = $1000 × 5.80%
annual coupon amount = $58
and here Market Price of the Bond will be
Market Price of Bond = Present Value of Coupon Payments + Present face Value ......................1
here Present Value of Coupon Payments at PVIFA 5.10% and 14 Years
Present Value Annuity Inflow Factor (PVIFA) = ....2
Present Value Annuity Inflow Factor =
Present Value Annuity Inflow Factor = 9.83566
and
Present Value Inflow Factor (PVIF) 5.10%, 14 Years= ...........3
Present Value Inflow Factor (PVIF) =
Present Value Inflow Factor = 0.49838
so
Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )
Market Price of Bond = $1,068.85
so total rate of return on the Bond will be
total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price] ...............4
total rate of return on the Bond =
total rate of return on the Bond = 9.40%