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zimovet [89]
3 years ago
6

On January 1, 20X1 when the effective interest rate was 14%, a company issued bonds with a maturity value of $1,000,000. The sta

ted rate of interest is 12%, the bonds pay interest semi-annually and sold for $893,640. The amount of bond discount amortized on July 1, 20X1 is approximately:__________.
Business
1 answer:
IRINA_888 [86]3 years ago
5 0

Answer: $2,555

Explanation:

Bond discount amortization = Interest cost - Coupon payment

Coupon payment = Stated interest * Par value

= 12% * 1,000,000 * 6/12 months

= $60,000

Interest cost = Issue price * effective interest

= 893,640 * 14% * 6/12

= $62,554.80

Amortized amount:

= 62,554.80 - 60,000

= $2,554.80

= $2,555

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Answer: 6.6%

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The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.

Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate

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2 years ago
according to the text, superior performance within the strategic business unit (sbu) is sought by asking which major question?
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Superior means better or greater in value. An instance of advanced users as an adjective is an advanced manager which means a supervisor whose abilities have been evaluated as fantastic. An instance of advanced users as an adjective is a superior grade of 100% on an exam. (printing) Set above the primary line of a kind. you use superior to explain someone or something that is better than different comparable humans or matters. Your superior in an agency that you work for is a person who has a higher rank than you. They do now not have a lot communique with their superiors.

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3 0
1 year ago
High school football is arguably more popular in West Texas than in any other region of the country. During football​ season, sm
Furkat [3]

Answer:

The answer is D. All of the above are plausible

Explanation:

A. Opportunity costs are relatively low is reasonable because as football game is taking place, most of the local people will go to the field to enjoy the field rather than spending their time at local shops/restaurants. Moreover, there are not many people from other towns visiting these facilities because of far distance.

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=> So, the answer is D.

8 0
3 years ago
If the supply of a product increases, then we would expect equilibrium pricea.to increase and equilibrium quantity to decrease.
azamat

Answer:

The correct answer is option d.

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The effect of supply increase is indicated through the given figure.

5 0
3 years ago
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