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Anarel [89]
3 years ago
12

Merkel Corporation issues $200,000 face amount bonds with a stated interest rate of 6%. If the market interest rate is 5%, the b

onds will issue at
Business
1 answer:
VMariaS [17]3 years ago
7 0

Answer:

At a premium to the face amount

Explanation:

The bond has a higher coupon rate compared to its market interest of 5%, hence, the bond would be issued at a premium, in other words, the proceeds from the bond issuance would be more than the face  amount of $200,000 as shown below using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:

N=20(let us assume it has 20 years to maturity and pays a coupon annually)

PMT=12000 (annual coupon=face value*coupon rate=$200,000*6%=$12,000)

I/Y=5(market interest rate without the % sign)

FV=200000

CPT

PV=$224,924.42($24,924.42 premium)  

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Miranda wants to operate a small catering business out of her home, located in a quiet residential neighborhood. She
morpeh [17]

According to the given scenario, Miranda has discovered that her new business will definitely be successful. Thus, option first is correct.

<h3>What is Business?</h3>

A business is an organization or enterprising body that engages in commercial, industrial, or professional activities. Businesses can be nonprofit organizations or for-profit enterprises.

Among the various business structures are partnerships, corporations, limited liability companies, and sole proprietorship.

According to the above situation, Miranda has learned that the future of her new company is bright as he has taken certain important steps in order to grow her business.

Therefore, it can be concluded that first is correct.

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5 0
1 year ago
Prime Corporation liquidates its ​85% owned subsidiary Bass Corporation under the provisions of Secs. 332 and 337. Bass Corporat
aliya0001 [1]

Answer:

$20000 gain for John Corporation and $10000 loss for Bass Corporation.

Explanation:

John Corporation gain(loss) = FMV of property - Liability assumed - Stock basis

                                               = 55000-10000-25000

                                               = 20000

Bass Corporation gain/loss = 55000-65000

                                              = - 10000

Therefore,  $20000 gain for John Corporation and $10000 loss for Bass Corporation.

5 0
3 years ago
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $6
Tomtit [17]

Answer:

present value $ 1,026.16

future value  $ 1,539.98

Explanation:

Present Value = $ 100 * 1/(1.07) ^ 1 + $ 100 * 1/(1.07) ^ 2 +$ 100 * 1/(1.07) ^3 + $ 200 * 1/(1.07) ^4 + $ 300 * 1/(1.07) ^5 +$ 600 * 1/(1.07) ^6

=93.45+ 87.34+81.62+152.20+213.23+398.32

= $ 1,026.16

therefore,  the correct value  is $ 1,026.16

b. Future Value = Present Value * ( 1+ Rate of Interest ) ^ Time

= $ 1,175.63 * ( 1+0.07) ^ 6

= $ 1,539.98

Hence the correct answer is $ 1,539.98

5 0
3 years ago
Bagels and cream cheese are complementary goods. The price of flour, used to make bagels, has fallen. As a result, the equilibri
statuscvo [17]

Answer: When the price of the flour falls, the equilibrium price of the cream rises and the equilibrium quantity of the cream cheese also rises

Answer A is correct

Explanation:

if flour is cheaper, bagels are chepear so demand increases and both equilbrium price and equilibrium quantity rises

8 0
3 years ago
As jamal's income rises, his demand for pizza does not change. it follows that, for jamal, pizza is a(n)
irga5000 [103]
<span>The pizza is a neutral good. A neutral good is a good whose demand is not changed even though the income provided by the good is changed. A person's income can go either up or down, but their desire to buy more or less of Jamal's pizza will not change, so pizza sales will not go up or down. Demand and income are not tied to each other.</span>
8 0
3 years ago
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