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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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The cost of grading and spreading gravel on a curvy rural road is expected to be $300,000. The road will have to be maintained a
Andrej [43]

Answer:

1.51

Explanation:

Calculation for the conventional B/C ratio

First step is to calculate B

B = $900,000(200%) -$900,000

B= $1,800,000-$900,000

B=$900,000

Second Step is to calculate C

C = $300,000 + $26,000(P/A,6%,20)

C= $300,000 + $26,000(11.4699)

C=$300,000+$298.218

C= $598,218

Last step is to calculate B/C ratio

Using this formula

B/C ratio=B/C

Let plug in the formula

B/C ratio = 900,000/598,218

B/C ratio= 1.5044

B/C ratio=1.51 Approximately

Therefore the conventional B/C ratio will be 1.51

4 0
3 years ago
Ayayai Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend
maxonik [38]

Answer:

Explanation:

The journal entries are shown below:

On Declaration date

Retained Earnings A/c Dr $4,000,000         (400,000 shares × $10)

        To Common Stock Dividend Distributable A/c $4,000,000        

(Being dividend is declared)

On distribution date:

Common Stock Dividend Distributable A/c Dr $4,000,000    

           To Common Stock A/c $4,000,000    

(Being the dividend is distributed)

8 0
3 years ago
4. Which of the following parts can be stored outside without contaminating the environment? A) Brake master cylinders B) Windsh
rusak2 [61]
B.windshields
the other will all cause some sort of contamination
6 0
3 years ago
Read 2 more answers
Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
vaieri [72.5K]

Answer:

the proper cash flow amount is $11,060,784

Explanation:

The computation of the proper cash flow amount is shown below:

= land value + plant value + grading value

= $3,650,288 + 6,880,840 + $529,656

= $11,060,784

Hence, the proper cash flow amount is $11,060,784

So the same should be considered and relevant

7 0
3 years ago
Bakers are much ___________ likely to supply pastries to the market if property rights are not enforced. In the presence of mark
Gwar [14]

Answer: more; externality; market power.

Explanation:

Bakers are much (more) likely to supply pastries to the market if property rights are not enforced.

a. A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream. - Externality

Externality, refers to the benefit s or costs that someone else incurs based on the economic decision of another person. In this case, this is a negative externality as the small town bears the cost of the production activities of the company.

b. A single public utilities company is responsible for supplying electricity for an entire state. As a result, the utilities company can set the price of electricity - Market power

Market power is when a firm is able to dictate the price and can then raise the price. This brings about the reduction in output as well. Since the single public utilities company is responsible for supplying electricity for an entire state, the company is enjoying monopoly power or market power.

8 0
3 years ago
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