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Pani-rosa [81]
3 years ago
12

A zero coupon bond pays no interest-only it face value of $1,000 at maturity. One such bond has a maturity of 18 years and an in

itial price of $130. What annual interest rate is earned if the bond is bought when issued and held to maturity?
Business
1 answer:
Ne4ueva [31]3 years ago
3 0

Answer:

12%

Explanation:

FV = PV*(1+i)^n

FV = 1000, PV = 130, i = annual interest rate, n = 18

∴ 1000 = 130*(1+i)^18

==> (1+i)^18 = 1000/130

==> 1+i = (1000/13)^(1/18)

i = 1.12001895 - 1

i = 0.12

i = 12%

Thus, the annual interest rate is 12%

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In a bill-and-hold arrangement, revenue only can be recognized after the sale of the goods to the end user.
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The correct answer is True. When ownership of the items passes to the customer, revenue is realised. In addition to the requirements for determining when control transfers, a reporting entity must also satisfy certain additional requirements for a customer to have achieved control in a bill-and-hold arrangement.

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8 0
1 year ago
Suppose that the government decides to regulate this natural monopolist by requiring the firm to charge a price of P2. Which is
Natali5045456 [20]

If the government takes this approach, consumer surplus would increase.

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7 0
2 years ago
Budd, the purchasing agent for Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for har
Anon25 [30]

Answer:

D. Purchase orders

Explanation:

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Purchase orders includes details such as purchase order number, the shipping date, billing address, shipping address, quantities and price.

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5 0
3 years ago
Sheffield Inc. has outstanding 13,100 shares of $10 par value common stock. On July 1, 2017, Sheffield reacquired 113 shares at
Svetradugi [14.3K]

Answer:

The journal entries for the given economic events are given below:

Date         Account Title                         Debit     Credit

7/1/17      Treasury Stock (113 X $88)     9,944

                 Cash                                                       9,944

9/1/17       Cash (62 X $94)                     5,828

                 Treasury Stock (60 X $88)                   5,280

                  Paid-in Capital from

                  Treasury Stock                                      548

(Paid in capital from Treasury Stock = 5828 - 5280 = 548)

11/1/17 Cash (51 X $86)                           4,386

                Paid-in Capital from

                Treasury Stock                          102

                     Treasury Stock (51 X $88)                   4,488

(Paid in capital from Treasury Stock = 4488 - 4386 = 548)

3 0
2 years ago
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