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Dafna11 [192]
3 years ago
5

A bank buys bonds with a par value of $25 million for $24,040,000. The coupon rate is 10 percent, and the bonds pay annual payme

nts. The bonds mature in four years. The bank wants to sell them in two years, and estimates the required rate of return in two years will be 8 percent. What will the market value of the bonds be in two years?
Business
1 answer:
Ilya [14]3 years ago
3 0

Answer:

$25,891,632.37

Explanation:

The computation of the market value of the bond in two years is given below:

We know that

Market value of the bonds be in two years is

= pv(rate, nper,pmt,fv)

Here  

Nper = 2

PV = ?

PMT =  25000000 × 10% = 2500000

FV = 25000000

Rate = 8%

Now  

Market value of the bonds be in two years is

= pv( 8%,2,2500000,25000000)

= $25,891,632.37

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On December 1, year 1, Lester Company issued at 103, four hundred of its 9%, $1,000 bonds. Attached to each bond was one detacha
Andrews [41]

Answer:

Lester Company

The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:______

c. $400,000.

Explanation:

Bonds issued at 103, 9% $1,000

Number of bonds issued = 400

Face value of bonds = $1,000 * 400 = $400,000

Proceeds from Bonds = $1,030 * 400 = $412,000

Premium from bonds issue = $12,000 ($412,000 - 400,000)

Carrying amount = $400,000

$400,000 is the bonds payable at maturity.  The $12,000 bonds premium will be amortized with the interest expense.  This implies that for the life of the bonds, part of the $12,000 will be deducted from the annual interest expense.

8 0
3 years ago
At the end of May, the following adjustment data were assembled.
777dan777 [17]

Answer and Explanation:

The adjusting entries are as follows:

a.  Insurance expense $275  

            To Prepaid insurance $275

(To record the insurance expense)

b.  Supplies expense $785 ($1,500 - $715)

            To Supplies $785

(To record the supplies expense)

We assume the balance of supplies before adjustment is $1,500

c. Depreciation - office equipment $330

          To Accumulated depreciation $330

( To record the depreciation expense)

d. Salary Dr $325

        To Accrued salary $325

(To record  the accrued salary)

e.  Rent expense $1,600  

           To Prepaid rent $1,600

(To record the rent expense )

f. Unearned fees $790  

          To Fees revenue $790

(To record the unearned fees is recorded)  

We assume the balance of unearned fees before adjustment is $4,000

Therefore, $790 is arrive from

= $4,000 - $3,210

= $790

7 0
3 years ago
One employee is in charge of the following activities at a drive-through of a bank: Activity Activity Time per Customer Greet cu
LiRa [457]

Answer:

26.67

Explanation:

Processing Time = 2 sec + 3 sec + 2 min + 10 sec

2 minutes = 2 x 60seconds = 120

Processing time = 120 + 2+ 3 + 10

= 135 sec

Process Capacity

= 1/135 x 60 (sec/min)

= 0.007407 x 60

= 0.44444

0.44444 x 60 (min/hr)

= 26.67

4 0
3 years ago
OKRs were naturally integrated into the management of MyFitnessPal. A successful innovation to the OKR system made by Mike Lee w
shusha [124]

Answer:

A. True

Explanation:

Since in the question it is mentioned that QkR is naturally integrated into the MyFitnessPal management. Also the innovation would become the successful when the objectives are matches according to the people instead matching  the people to objectives as in this the people are aligned and understand what the firm wants that they work like this

Therefore the given statement is true

3 0
3 years ago
Type the correct answer in the box. Spell all words correcty.
Nookie1986 [14]

Answer and Explanation:

The information management refers to manage the information in effecetive and efficient manner. It could be in terms of storing, organizing, developing, using, distributing the information so that it became useful for the organization

Here, the goal of information management is to identify the requirement of the information for various management levels so that it can be used in appropriate manner.

5 0
3 years ago
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