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Iteru [2.4K]
3 years ago
15

Treasury bonds paying an 10.00% coupon rate with semiannual payments currently sell at par value. What coupon rate would they ha

ve to pay in order to sell at par if they paid their coupons annually?
Business
1 answer:
andrezito [222]3 years ago
3 0

Answer:

10.25%

Explanation:

The requirement which is Coupon rate can be calculated using EAR formula.

EAR = (1 + APR/n)^n - 1

EAR = (1 + 10.00%/2)^2 - 1

EAR = (1 + 0.1/2)^2 - 1

EAR = (1 + 0.05)^2 - 1

EAR = (1.05)^2 - 1

EAR = 1.1025 - 1

EAR = 0.1025

EAR = 10.25%

10.25% is the coupon rate for annually paying bond.

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What is the minimum requirement to enroll in an open college?
just olya [345]

Answer:

c. there is no requirement

8 0
3 years ago
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Lulzbot sells 6,000 units of its product for $500 each. The selling price includes a one-year warranty on parts. It is expected
Olin [163]

Answer:

$3,000

Explanation:

Warranty expense is an obligation on the business because business is liable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Total Sales = $500 x 6,000 units = $3,000,000

Warranty Expense for the year = Sales units x 3% x warranty cost per unit

Warranty Expense for the year = 6,000 x 3% x $50 = $9,000

Recognised warranty cost in the year = 120 units x $50 = $6,000

Accrued Warranty expense = $9,000 - $6,000 = $3,000

5 0
3 years ago
Buyers Sam and Linda Pope are entering into a contract with sellers, Jim and Alana Jones in which part of the sale price of the
Alina [70]

Answer:

d) Installment sales contract

Explanation:

A contract is described as an agreement between two or more parties commits to undertakes specific obligations.  In a sale contract, the buyer and seller agree to the exchange or foods or services for a consideration called price.

An installment sale contract is an agreement that allows the buyer to make payment for the goods or services over time. Once an agreement has bee reached, the buyer takes possession of products and is free to use them. The buyer makes regular payments for the goods (installments) and will claim ownership upon completing payments. An installment sale contract is a form of credit sale.

8 0
3 years ago
A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 plan) that earns 8 percent. U
lana [24]

Answer:

$146,212.00  

Explanation:

PMT which is the annual savings is $2000

Rate  is 8%

The annual savings would last for 25 years(65-40)

FVIFA FACTOR=(1+r)^n-1/r

r=8%

n=25

FVIFA FACTOR=(1+8%)^25-1/8%

FVIFA FACTOR=(1.08)^25-1/0.08

FVIFA FACTOR=(6.848475196-1)/0.08=73.106

Amount in the account at retirement=PMT*FVIFA FACTOR

Amount in the account at retirement=$2000*73.106=$146,212.00  

6 0
2 years ago
Pina Colada Corp. has the following transactions during August of the current year.
const2013 [10]

Answer and Explanation:

The indication of the basic analysis and the debit credit analysis is as follows;

Date                   Basic Analysis                    Debit - Credit Analysis

Aug. 1       The asset Cash is increased;     Debits increase assets;

              the stockholders' equity account   Debit Cash

                Common stock is increased.         $10,880

                                                      Credits increase stockholders' equity

                                                                      Credit Common stock

                                                                             $10,880

Aug. 4            The asset Prepaid Insurance        Debits increase assets;

                           is increased;                              Debit Prepaid Insurance

              the asset Cash is decreased.               $ 1,500

                                                                              Credits decrease assets;

                                                                             Credit Cash

                                                                              $ 1,500

Aug. 16        The asset Cash is increased;        Debits increase assets;

           the revenue Service revenue               Debit Cash

             is increased.                                         $880

                                                                          Credits increase revenues:

                                                                          Credit Service revenue

                                                                          $880

Aug. 27      The expense Salaries expense    Debits increase expenses:

                  is increased;                                Debit Salaries expense

                 the asset Cash is decreased.       $680.

                                                                       Credits decrease assets:

                                                                      Credit Cash

                                                                         $680

3 0
3 years ago
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