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SashulF [63]
2 years ago
13

You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous ow

ner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 7 years, selling the bond immediately after you receive the interest payment. If your desired nominal yield is 10% per year compounded semiannually, what will be your minimum selling price for the bond
Business
1 answer:
igor_vitrenko [27]2 years ago
5 0

Answer:

$12,341.80

Explanation:

The computation of the minimum selling price for the bond is shown below:

Semi-annual  = 10% ÷ 2 = 5%

Semi-annual compounding periods = 7 × 2 = 14

Semi-annual coupon (for 10 bonds) = $10,000 × 6.6% × (1 ÷ 2) = $330

as we know that

Here We assume the selling price be S

The Present worth of the bond = PW of future cash flows

$9,500 = $330 × P/A(5%, 14) + S × P/F(5%, 14)

$9,500 = $330 × 9.898641 + S × 0.505068

$9,500 = $3,266.55 + S × 0.505068

S × 0.505068 = $6,233.45

= $12,341.80

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Mary Co. paid dividends of $5,000, $6,200, and $8,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,700 sha
Monica [59]

Answer :

Amount of dividend paid =$1,350

Explanation :

The computation is shown below:

As per the data given in the question,

Dividend per year for preferred stock = $1700 × $100 × 3.5%

= $5,950

Particulars                   Year 1          Year 2                  Year 3

Preferred dividend     $5,000         $6,200                $6,650

                                                                                 ($700+$5,950)

Preferred dividend in arrears $950  $700

                                     ($5,950-$5,000)  ($5,950+$950-$6,200)

Therefore dividends for common shareholders is

=  $8,000 - $6,650

= $1,350

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3 years ago
Which of the following account groups are temporary accounts?
victus00 [196]

Answer: d. Rent Revenue, Fees Earned, Miscellaneous Expense

Explanation:

Temporary accounts are also referred to as nominal accounts and they are the accounts that are closed when the year ends and began afresh the following accounting period and they basically relates to fees, expenses and gains.

From the options above, the answer will be option D "Rent Revenue, Fees Earned, Miscellaneous Expense"

8 0
3 years ago
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College or other advanced education will help you increase your lifetime earning potential by opening up the possibility of higher paying jobs.

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Answer:

B, corporate citizenship

Explanation:

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Cheers.

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