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nlexa [21]
3 years ago
6

On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June

30 and December 31. The bonds mature in 15 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds
Business
1 answer:
zysi [14]3 years ago
6 0

Answer: $86,235

Explanation:

Use Excel or a financial calculator to calculate the bond price.

As the interest is payable semiannually, the relevant variables are:

Coupon = 10% * 100,000 * 1/2 years = $5,000

Yield = 12% / 2 = 6%

Number of periods = 15 years * 2 = 30 semi annual periods

Bond price = $86,235

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How can you fix the current finance decisions so that we are in a healthy cash position at the end of the year?
Anit [1.1K]

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

Given that we want us to be in a healthy cash position at the end of the year.

We are require to find the way how can we will be in a healthy cash position at the end of the year.

A cash position basically represents the amount of cash that a company, investment fund, or bank has on its books at a specific point in time.

If we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be enough investments in our balance sheet and less debt.

Hence if we want us to be in a healthy cash position at the end of the year then we have to ensure that there will be less long term debt and more investments at that time in our balance sheet.

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7 0
1 year ago
Read 2 more answers
Jack and Jill have a tenancy in common in an apartment building. After ten years of ownership, Jill dies unexpectedly. On Jill's
Basile [38]
<h2>Jill's interest in the property will: <u>Pass to Jill's heirs </u>(Option B)</h2>

Explanation:

Let us understand the meaning of tenancy: It is the "possession of any property which might be land or building and get connected as tenant".

In contrast, ownership means the property belongs that person alone or in partnership.

Understanding the above terms, We can say, Jack and Jill have been a tenant and after ten years, Jill dies. So the rest of the interest in the property will definitely go to his heirs only.

It cannot be passed to Jack because Jill's interest will not be paid by other person except for Jill's heirs. Jack heirs are no way responsible or own the property of Jack.

7 0
3 years ago
As it relates to source selection and procurement integrity, an appearance of a conflict of interest is not as bad as an actual
Luden [163]

Answer:

False

Explanation:

The reputation can be permanently harmed when a conflict of interest is possible.

7 0
3 years ago
Initially, a reduction in export subsidies decreases net exports at any given real exchange rate, causing the demand for dollars
romanna [79]

Answer:

Decreases; increasing

Explanation:

However, the reduction in expenditure on export subsidies <u>decreases </u>the fiscal deficit, thereby <u>increasing</u> public saving.

National savings refers to the sum of public and private savings. Public savings is the government budget balance. An increase in the balance or decrease in deficit implies the public savings increase and also increase in national savings. Then, the decrease in subsidy spending decreases government deficit and increases national savings and supply of loanable funds, so the loanable funds shift to the right.

8 0
2 years ago
Which of these is a major advantage of a market economy?
Fofino [41]

These is a major advantage of a market economy is it can change direction rapidly when needed as markets change. Thus second option is correct.

<h3>What is Market Economy?</h3>

Market Economy refers to the economy in which the prices of the goods and services are determined by the two market forces that are supply and demand.

There is a less control of the government in the market economy and therefore all the decisions are taken by the private individuals. Thus option 1st is incorrect.

The Prices of the goods and services are determined by the supply and demand forces and the prices are kept as per the affordability of the customers. Thus option 3rd is also incorrect.

Therefore the correct option is 2nd one as the market changes the price of the good and services are also effected and get changed.

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5 0
2 years ago
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