1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
KIM [24]
3 years ago
6

Wally, Inc. issues $100,000 of 5% bonds, due in 10 years, when the market rate of interest is 6%. Interest is paid semiannually

on June 30 and December 31. The issue price of the bonds is:_________
a. $88,530
b. $92,561
c. $92,640
d. $107,795
Business
1 answer:
ki77a [65]3 years ago
3 0

Answer:

b. $92,561

Explanation:

Face Value  = 100,000.00

Term (in years)  = 10

Total no. of interest payments  = 20

Market Rate  = 6.0%  / 2 = 3.0%

Coupon Rate  = 5.0%/2 = 2.5%

                                      Amount         PV factor          Present Values

PV of Face Value of      $100,000   0.553675754       $55,367.58

PV of Interest payment $2,500      14.87747486           <u>$37,193.69</u>

Issue Price of Bonds                                                        <u>$92,561.26</u>

You might be interested in
A market growth factor that explains customers' perceptions of a new product as better at satisfying their needs than the produc
Serhud [2]
This is the answer to
8 0
3 years ago
A yield can be paid in the form of?
Helga [31]

Answer:

both a and b

Explanation:

3 0
3 years ago
A loan for $100,000 is fully amortized over 25 years with payments of $772 per month, including interest of 8% per annum. the fi
Ilya [14]

I THINK ITS MIDDLE FINGERS AT THESE AHOLE MODERATORS

6 0
4 years ago
1) A balance sheet includes all of the following except
nika2105 [10]

1. a balance sheet includes all except depreciation.

2. business do have to report their financial statements to the irs so this is true.

3. the loss that a company experiences when a service goes unused is a liability.

hope this helps ☺

5 0
4 years ago
Read 2 more answers
Supply-side economics stresses that:___________.
matrenka [14]

Answer:

changes in marginal tax rates exert important effects on real output and employment-4

Explanation:

Supply-side economic focuses on creating a better atmosphere or conditions for businesses and is majorly concerned with reduction of marginal taxtand deregulation.

According to the this policy, companies are able to hire more workers if the changes in the marginal tax are favourable ie reduced leading to a higher levels of production, and increased production capacity which results to job growth creating more demand which will further improve the economy.

3 0
3 years ago
Read 2 more answers
Other questions:
  • When acting as a leader of a meeting, how can you best contribute to the progress of the meeting? Question 42 options: a) Insist
    6·1 answer
  • The tendency to search for information consistent with our preconceptions is called: A. functional fixedness B. the representati
    13·1 answer
  • An oil well cost​ $2,050,000 and is calculated to hold​ 290,000 barrels of oil. There is no residual value. Which journal entry
    7·1 answer
  • _____ refers to the systematic process of regulating a company's activities to make them consistent with the expectations establ
    9·1 answer
  • How many years to become a Geriatric General Surgeon
    10·1 answer
  • In order to make a decision utilizing a decision tree, you must:___________.a. start at the most distant point in time and work
    14·1 answer
  • Suppose a banking system has a required reserve ratio of 0.15. How much can the money supply increase in response to a $1 billio
    9·1 answer
  • A student who lives on the fifth floor of Bates Hall is assigned to a new room on the eighth floor during her junior year. She h
    14·1 answer
  • Assume that you can receive $500,000, $515,000, and $600,000 over a 3 year period and the present value of those sums at 8% is $
    13·1 answer
  • Strategic positioning attempts to achieve sustainable competitive advantage by ______.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!