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vlada-n [284]
3 years ago
10

On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest on a semiannual basis on Ju

ne 30 and December 31 each year. The market interest rates were slightly higher than 5% when the bonds were sold. How much interest will be paid semiannually (each year on June 30 and on December 31) on these bonds?
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
4 0

Answer:

$1 million or $1,000,000

Explanation:

The interest payment on the bonds is based on the face value of the bond and coupon interest rate of the bond. If interest is paid semiannually the coupon annual rate should also be calculated for 6 months to calculate the semiannual payment.

As per given data

Face value = $40 million

Coupon Rate = 5% annually

Coupon rate = 5% / 2 = 2.5% semiannually

Semiannual payment of interest = Face value x Coupon rate

Semiannual payment of interest = $40 million x 2.5%

Semiannual payment of interest = $1 million

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A shop can sell at most 200 pairs of socks and at most 100 pairs of shoes. To maximize the profit, they have decided to make 2 o
olya-2409 [2.1K]

Answer:

50 packages of offer 1 and 50 packages of offer 2

Explanation:

Determine How many packages of each offer do they have to sell to maximize the profit

Number of package of offer 1 = x

Number of package of offer 2 = y

<u>Applying the LPP model</u>

max Z = 30 x + 50 y  ----  ( 1 )

now subject to the constraints from Linear programming

x + 3y ≤ 200  ------ L1

x + y ≤ 100 ------ L2

x ≥ 20 ------------- L3

y ≥ 10 -------------- L4

therefore the number of packages of each offer that can be sold to maximize profit will be : X = 50 and Y = 50  referring to equation from the LPP model  considering that the shop can sell at most 100 pairs

7 0
3 years ago
Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable wit
Murljashka [212]

Answer:

The Journal entries with their narrations of Jesse’s investment and Tim’s investment is shown below:-

Explanation:

a. Jesse’s investment

Accounts Receivable Dr,                      $41,600

($45,000 - $3,400)

Agreed price of equipment Dr,             $68,200

      To allowance for doubtful debts                 $1,600

       To capital account                                       $108,200

(Being Jesse's investment is recorded)

b. Tim’s investment

Cash Dr,                                           $22,000

Agreed price of inventory Dr,             $49,000

           To Tim capital                                         $71,000

(Being Tim's investment is recorded)

6 0
4 years ago
Virginia sees Carl, with whom she attended high school 15 years ago, driving near her in rush hour traffic. She honks and waves
Zinaida [17]

Answer:

The answer is true

Explanation:

Decoding is a process of interpretation and translation of coded information into a comprehensible form. it is evident that there was a problem in Carl decoding the message as what she interpreted the message was not necessarily  what Virginia meant.

8 0
4 years ago
Which of the following statements about income taxes is not correct?
Anastaziya [24]

The correct statement regarding the income tax is Deductible temporary differences give rise to deferred tax liabilities, meaning that more tax is payable in the future. hence option C is correct

<h3>What is income tax?</h3>

A tax placed on people or organizations in relation to their income or profits is known as an income tax. Tax rates multiplied by taxable income are typically used to calculate income taxes. Tax rates might change depending on the taxpayer's attributes and source of income.

The complete part of the question is below:

A) Review Later Income tax expense includes both the amount of tax payable in the current period and the amount of tax due in future periods.

B)Income taxes are based on taxable income and not accounting income.

C)Deductible temporary differences give rise to deferred tax liabilities, meaning that more tax is payable in the future.

D)Deferred taxes arise because of temporary differences between the tax base and the carrying amount of assets and liabilities on the balance sheet.

Hence option C is correct.

Learn more about income tax:

brainly.com/question/17075354

#SPJ1

7 0
2 years ago
Mark Johnson invests a fixed percentage of his salary at the end of each year. This year he invested $1500 For the next 5 years,
meriva

Answer:

Mark Johnson's investment would worth $ 13,223.95  at 8%,$ 12,338.93  

at 5% and $ 11,784.66  at 3%

Explanation:

In calculating the worth of the investments at different rates of interest I adopted the future value approach as contained in the attached.

Download xlsx
5 0
3 years ago
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