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3 years ago

1 point

Business

1 answer:

gavmur [86]3 years ago

8 0

Answer:

Find attached statement and the question which question number 10.

The correct option is C,$90

Explanation:

In the statement you would notice that the balance transfer from another credit card was $785,upon which balance transfer levy of $23.55 was charged(Section 7)

Intuitively, the percentage of balance transfer charge is $23.55 divided by the amount of balance transfer i.e $785

balance transfer charge(%)=$23.55/$785=3%

However, if the balance transfer were $3000,the charge is 3% of $3000 i.e $90 ($3000*3%).

The correct option then is C,$90

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What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 11 perce

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Answer:

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Explanation:

According to the scenario, computation of the given data are as follow:-

a).

Year Cash flow PVF 11% PVF 11% discount time P.V. cashflow×time

1 $100 0.901 $90.1 1 $90.1

2 $1,100 0.812 $893.2 2 $1,786.4

Total 983.3 $1,879.5

Bond price = $983.3

Bond duration = 1,879.5 ÷ 983.3 = 1.91 year

b).

1st year cash flow = $1,000 × 10÷100 = $100

2nd year cash flow = $1000 + $100 = $1,100

If interest rate are decreased by 0.3%

11% - 0.3% = 10.7%

PVF = cash flow ÷ (1+rate)

Year Cash flow($) divide PVF 10.7% PVF 11% discount ($)

1 100 ÷ 1.107(1+.107) 90.33

2 1,100 ÷ 1.225449(1+.107)^2 897.630

Total 987.96

Price of bond will be $987.96 at 10.7%.

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3 years ago

At the end of the current year, $22,650 of fees have been earned but have not been billed to clients. Required: A. Journalize th

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Answer:

A. Adjusting Journal Entries:

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Adjusting entries are only required to align the cash-basis accounting records to the accrual basis. Adjustments are made for prepayments of expenses, unpaid expenses, deferred revenue, unearned earned and earned revenue, and depreciation charges. For an entity operating on a cash basis, adjusting entries are not required.

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Answer:

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4 years ago

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Answer:

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