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Tomtit [17]
3 years ago
6

issued $200,000 of 10-year bonds on January 1. The bonds pay interest on January 1 and July 1 and have a stated rate of 10 perce

nt. If the market rate of interest at the time the bonds are sold is 12 percent, what will be the issuance price of the bonds (pick the closest answer)?
Business
1 answer:
just olya [345]3 years ago
6 0

Answer:

$177,060.16

Explanation:

The issuance price of the bonds is also known as the current price of bonds and in the bond calculation we refer this as the Present Value or PV.

Using a financial calculator, PV of the Bond is determined as :

FV =  $200,000

N = 10 x 2 = 20

P/YR = 2

PMT = ($200,000 x 10%) ÷ 2 = $10,000

I/YR = 12 %

PV = ??

Thus,

The PV is determined as $177,060.16

therefore,

The issuance price of the bonds is $177,060.16

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Assume the appropriate discount rate for the following cash flows is 4.78 percent per
lana66690 [7]

Answer:

$9,589.75  

Explanation:

The computation of the present value of the cash flows should be shown in the excel spreadsheet. Kindly find the two attachment out of which one attachment contains the final values, the other attachment contains the formula sheet

After applying the formulas,

The present value of the cash flows is $9,589.75

Hence, the same is to be considered

8 0
3 years ago
Which budget allows a business owner to calculate the amount to charge the customer in order to make a profit
denpristay [2]

Answer:

Budgeted Income Statement in the Master Budget

Explanation:

The Master Budget provides a summary of all the operations of the business. It is made up of Budgeted Manufacturing Account, Budgeted Income Statement and Budgeted Financial Position.

Where the selling price it to be determined, the price giving the desired profits can be calculated by adjusting the sales to the desired profits in the Budgeted Income Statement.

7 0
3 years ago
In the 1990s, many isolated individuals began to see the growth of federal prison populations as a problem. Later they would for
tekilochka [14]

Answer:

C. Incipient Stage of the Social Movement

Explanation:

Social Movements represent group actions. The movement is usually characterized by the coming together of organisations or individuals, it can be formal or informal. The focus of social movements is to provoke action or bring about change in areas of the society.

Social Movements are marked by 4 stages: Emergence, coalescence, bureaucratization, and decline

Stage 1: Emergence or Incipient Stage - This stage is where individuals in isolated areas begin to see or believe there is a problem with a policy or an area of society. There is disappointment with certain social or political issues. It is the stage of realisation of a problem and dissatisfaction with the problem and this is the stage identified in the question.

Stage 2: Coalescence - This stage goes beyond the dissatisfaction to people, groups coming together to discuss the issue and then campaigns and protests begin to emerge

Stage 3: bureaucratization- Powerful unions begin to emerge, these coalitions also begin to acquire political power to cause change in the issues they are addressing.

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3 0
3 years ago
APV and WACC are similar in that they reflect the tax benefit of Blank______. Multiple choice question. leverage relocation equi
bixtya [17]

APV and WACC are similar in that they reflect the tax benefit of leverage.

<h3>How to illustrate the information?</h3>

It should be noted that the adjusted present value (APV) is used to value a project.

The weighted cost of capital (WACC) implies the rate at which a company is expected to pay all its security holders in order to finance its assets.

In conclusion, APV and WACC are similar in that they reflect the tax benefit of leverage.

<u>Complete question:</u>

APV and WACC are similar in that they reflect the tax benefit of ...........

a. leverage

b. relocation

c. equity

d. waiting

Learn more about WACC on:

brainly.com/question/25566972

#SPJ1

3 0
2 years ago
What role does government regulation serve in business
puteri [66]

Hi


The role that government regulation serve in business is to Protect consumers and producers


I hope that's help !

7 0
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