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3 years ago

The fixed exchange rate system was used until 1971. Question 3 options: True False

Business

2 answers:

PilotLPTM [1.2K]3 years ago

4 0

Answer:

True

Explanation:

The fixed exchange rate came to an end in 1971 in the US.

Before 1971, the US currency value was tied to an ounce of gold. In 1971 the US economy was undergoing a recession. The US authorities bought all the gold value backing the dollar to end the recession. The dollar became a fiat currency.

The year also marked the beginning of the floating exchange system for the dollar.

GarryVolchara [31]3 years ago

3 0

The answer is True :)

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Answer:

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$345,000

Explanation:

a) Data and Calculations:

Accounts Receivable (Beginning) $88,000

Accounts Receivable (Ending) $77,000

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c) The Accounts Receivable reduced from $88,000 to $77,000. This implied that some customers settled their accounts. Therefore, there was inflow of cash from customers. This increases the cash flows from operating activities. This is why the difference is added to the Income as per income statement as a change in working capital.

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3 years ago

On January 1, 2019, Stronger Industries issued $480,000 of 9%, five-year bonds that pay interest semiannually on June 30 and Dec

Katena32 [7]

Answer:

Journal Entry to record the first interest payment

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Dr. Premium on Bond $1,620.68

Cr. Cash $21,600

Explanation:

First, we need to calculate the premium on bond amortization as follow

Premium on bond amortization = Coupon Payment - Interest Expense

Premium on bond amortization = ( $480,000 x 8% x 6/12 ) - ( $499,483 x 8% x 6/12 )

Premium on bond amortization = $21,600 - $19,979.32

Premium on bond amortization = $1,620.68

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3 years ago

The Corner Grocer has a 7-year, 6 percent annual coupon bond outstanding with a GHS 1,000 par value. The bond has a yield to mat

Amanda [17]

The increase of yield to maturity to 6.5% would reduce bond price by 5.43%

What is bond price?

The bond price is the present value of annual coupons over the bond life of 7 years and the face value payable to bondholders at bond maturity discounted at the yield to maturity of the bond.

We can determine the bond prices with yield to maturity of 5.5% and with 6.5% yield to maturity using a financial calculator which requires that the calculator be set to its end mode since its annual coupons are payable at the end of each year, rather when the coupons would be paid at the beginning of each year.

Initial bond price:

I/Y=5.5(bond yield is 5.5%, without the % sign)

PMT=60(annual coupon=face value*coupon rate=1000*6%)

N=7(number of annual coupons in 7 years)

FV=1000(the face value is 1000)

CPT(press compute)

PV=GHS 1,028.41

New price with YTM of 6.5%:

I/Y=6.5(bond yield is 6.5%, without the % sign)

PMT=60(annual coupon=face value*coupon rate=1000*6%)

N=7(number of annual coupons in 7 years)

FV=1000(the face value is 1000)

CPT(press compute)

PV=GHS 972.58

change in bond price=(972.58/ 1,028.41)-1

change in bond price=-5.43%

Find out more about bond pricing on:brainly.com/question/25596583

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2 years ago