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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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Which of the following statements about social media is FALSE? Multiple Choice Social media can lead to hiring discrimination by
sesenic [268]

Answer:

  • social media rarely reduces productivity in the workplace

Explanation:

Social media is used for the interaction and connection of people mostly with similar interests or characteristics in various arms of life and also at places of work. most social media profiles contains the age,family,composition and sexual orientation of the user and in some case religious affiliation and this might lead to hiring discrimination when employers use the social media for recruitment purposes.  social media most definitely reduces productivity in the workplace when employees engage themselves on social media while at work

8 0
3 years ago
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicat
Anna [14]

Answer:

$26.50

Explanation:

The computation of the predetermined overhead rate is shown below:

= Variable overhead rate + fixed overhead rate

where,

Variable overhead rate is $8.30

And, the fixed overhead rate is

= $145,600 ÷ 8,000 direct labor hours

= $18.2

So, the predetermined overhead rate is

= $8.30+ $18.2

= $26.50

We simply added the available overhead rate and the fixed overhead rate so that the predetermined overhead rate could arrive

5 0
3 years ago
The exercise price of the options is $100 per share, all options are European, and the stock does not pay any dividend. The call
defon

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + \frac{100}{(1+r)^t} = S + P    .....................a

we know here that C is call price and r is rate and t is time and S is Stock Price and P is put price

so put all value in equation a

C + \frac{100}{(1+r)^t} = S + P

25 + \frac{100}{(1+0.5)^2} = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

3 0
3 years ago
You have just taken out an installment loan for $100,000. Assume that the loan will be repaid in 12 equal monthly installments o
Rama09 [41]

Answer:

$7,757.16

Explanation:

rate of interest = 2%

Rate(12, 9456-100000)

Rate(nper,pmt,pv)

APR = 24.00%

           (Rate*12)

Principal for third monthly payment = PPMT(2%,3,12,-100000)

               = $7,757.16

7 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per
kupik [55]

Answer:

$192,000

Explanation:

Calculation for What is the value of ending inventory under variable costing

Using this formula

Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]

Let plug in the formula

Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]

Value of ending inventory= ($15 units+$9 units)×8,000 units

Value of ending inventory=$24 per units×8,000 units

Value of ending inventory = $192,000

Therefore the value of ending inventory under variable costing will be $192,000

8 0
3 years ago
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