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aleksley [76]
3 years ago
12

A company issues $100,000 of 6%, 5-year bonds dated January 1 that pay interest semiannually. The bonds are issued when the mark

et rate is 8%. The present value tables indicate the present value factor of an annuity for 3% at 10 periods is 8.5302; and for 4% at 10 periods is 8.1109. To find the present value of the interest payments, multiply _______ by the present value factor _________.
Business
1 answer:
lora16 [44]3 years ago
8 0

Answer:

To find the present value of the interest payments, multiply <u>$3,000</u> by the present value factor <u>8.1109</u>.

Explanation:

the market price of the bonds:

  • present value of face value = $100,000 / (1 + 4%)¹⁰ = $67,556.47
  • present value of coupon payments = $3,000 x 8.1109 (PV annuity factor, 4%, 10 periods) = $24,332.70

market price = $91,889.17

Since the market rate is higher than the coupon rate, the bonds will be sold at a discount.

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1 year ago
Maddy has been performing at a very high level at a firm, and so when two of her colleagues who are currently leading other deve
tatuchka [14]
<span>The second team is currently in the requirements phase of their project. In this phase, the team would plan and spell out exactly what is required of the system that they are constructing. This phase comes with heavy input from stakeholders who help define the scope and nature of the project.</span>
5 0
3 years ago
Customer A. Smith owed Stonebridge Electronics $325. On April 27, 2016, Stonebridge determined this account receivable to be unc
Kitty [74]

Answer:

A Journal was prepared for the receivable bad debt of a customer that owned stone bridge Electronics which us shown below

Explanation:

Solution

The first step to take in this case is to Nationalize the transaction to be recorded for the month of July 15, 2016.

A JOURNAL ENTRY FOR RECEIVABLE BAD DEBT OF $325

                        Particulars              Debit          Credit

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                        To Bad Debt Expense               $325

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6 0
3 years ago
Tangerine Inc. is evaluating a capital project for investment. The initial cash outflow in Year 0 is $1,500 followed by cash inf
irina [24]

Answer:

Terminal value

= 500(1+0.12)3 + 500(1+0.12)2 + 500(1+0.12)1+ 500(1+0.12)0

= 500(1.12)3 + 500(1.12)2 + 500(1.12)1 + 500(1.12)0

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= $2,389.66

The correct answer is E

Explanation:

Terminal value is a function of number of years cashflow for each year can be re-invested at the appropriate discount rate. The cashflow for year 1 can be re-invested for 3 years since the life of the project is 4 years. cashflow for year 2 can be re-invested for 2 years, cashflow for year 3 can be re-invested for 1 year and cashflow for year 4 can be re-invested for 0 year.

8 0
3 years ago
Question 10<br>The stockholders of a corporation is what​
geniusboy [140]

Answer:

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Hope this answer help u friend!!!!

8 0
3 years ago
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