1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
6

On January 1,2016, the Ruffin Corporation issued $40,000 par value, 4%, four-year bonds that mature on December 31, 2019. Ruffin

will pay interest quarterly on March 31, June 30, September 30, and December 31. The company's fiscal year ends on December 31. What is the issue price of this bond assuming the market rate of interest is 4%?
Business
1 answer:
Sergeu [11.5K]3 years ago
7 0

Answer:

Face Value of the Bond = 40000

Effective Interest = 4%

Coupon rate = 4%

Years to Maturity = 4

Quarterly Coupon rate = 1%

No. of compounding periods = 16

Present Value of Face (40000*.85282)                       $34,112.85

Present Value of Interest Payments (800*14.7179)      <u>$5,887.15</u>

Total                                                                                $40,000.00

Face Value of Bond                                                       <u>$40,000.00</u>

Initial Amount of Discount/(Premium)                           <u>$0.00         </u>

Note: As the bonds are issued at par, there is premium or discount.

You might be interested in
Which statements are true about assessing the effectiveness of a strategic plan?
malfutka [58]
The answer is a manager should search diligently for ways the strategy can be improved
8 0
3 years ago
How much money was spent on black friday this year?
Tatiana [17]

Answer:

a lot of money was spent this year

5 0
2 years ago
How old does a senator have to be?
mafiozo [28]

Answer:

<em><u>Article 58.- To be a senator, the same requirements are required as to be a deputy, except age, which will be 25 years old on the day of the election.</u></em>

Explanation:

and i'm mexican

7 0
2 years ago
Read 2 more answers
Capital budgeting is concerned with making and managing expenditures on:________
vovangra [49]

Answer:

on your goal or achievement

7 0
3 years ago
Kansas Enterprises purchased equipment for $73,000 on January 1, 2021. The equipment is expected to have a five-year service lif
Margaret [11]

Answer:

Depreciation expense = $13,130

Book value = $46,740

Explanation:

Depreciation is a method of expensing the cost of an asset.

Depreciation expense using the straight line method = (Cost of asset - salvage value) / useful life

($73,000 - $7,350) / 5 = $13,130

The depreciation expense each year would be $13,130.

Book value = Cost of asset - Depreciation expense

In December 2021, the book value would be = $73,000 - $13,130 = $59,870

In December 2022, the book value would be = $59,870 - $13,130 = $46,740

I hope my answer helps you

4 0
3 years ago
Other questions:
  • The following data have been collected for four different cost items.
    6·1 answer
  • What happens when there are only a few large customers in the market?
    7·1 answer
  • What is the most appropriate thing to do when you arrive at a table with a family praying while delivering food in a restaurant?
    14·1 answer
  • Describe the economic cycle. Give specific details and examples
    7·1 answer
  • What can we learn from the employment data? Assume Country X has the following statistics: Total relevant population = 50,000,00
    12·1 answer
  • Envision a multinational enterprise (MNE) making decisions about its internationalization strategy. The more such company's prod
    9·1 answer
  • What was the opportunity cost in a situation in which you use your available cash to buy gas for your car and then stay hungry t
    13·1 answer
  • Penny has been using the same brand of shampoo since her mother first bought it for her. She switches to another brand after her
    10·1 answer
  • Using your economic knowledge and the information you learned about Oprah Winfrey compose a well-written three-paragraph biograp
    9·1 answer
  • In 1971, under president richard nixon, the federal government passed legislation that "froze" wages and the prices of consumer
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!