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tester [92]
3 years ago
9

Last year, Bailey bought a bond for $1,000 that promises to pay $110 a year. This year, a person who buys a bond for $1,000 rece

ives $125 a year. If Bailey were to sell his (old) bond, its price would be approximately:__________.a. $880.b. $1,125.c. $1,136.d. $1,110.
Business
1 answer:
miv72 [106K]3 years ago
6 0

Answer:

a. $880.

Explanation:

Bailey bought a bond for $1,000 that promises to pay $110 a year.

The interest rate was 110/1000 * 100 = 11%

This year, $1,000 receives $125 a year= 125/1000 * 100 = 12.5%. So, this year the interest rate now rises to 12.5%.

If Bailey were to sell his (old) bond, the price should be 110/12.5% = 110/0.125 = $880.

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Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company
algol [13]

Answer:

b) Income is allocated on a pro rata basis

Explanation:

A partnership is an agreement between two or more people to oversee a business and share in the profit and losses made by the business.

In a partnership when income comes in it is shared.on a pro rata basis.

This means income is given based on the level of ownership of the business.

For example a partner that has 60% ownership of the partnership is expected to collect 60% of the business income.

Pro rata is also called proportional rate.

8 0
3 years ago
Which of the following is a potential safety hazard?
maxonik [38]

Umm... I can't find the choices... So, those are the choices I made up that are correct to your question.


  • Spills covering grounds or falling hazards, such as blocked paths or cords going over the ground.
  • Working from heights, including ladders, scaffolds, roofs, or an elevated workspace.
  • Unguarded device and moving machine pieces; guards dismissed or moving pieces that a worker can unintentionally touch.
6 0
3 years ago
Read 2 more answers
SCENARIO 9.7: Julio borrowed $80,000 from his great aunt to open a coffee stand at a local flea market. He agrees to pay his gre
leva [86]

Answer:

$20,000

$80,000

Explanation:

Fixed cost is the cost that does not vary with output.

Fixed costs = cost of interest + other yearly fixed cost

(0.05 x $80,000) + $16,000= $20,000

Total cost is the sum of fixed and variable cost.

Variable cost is the cost that varies with output. If output is zero, variable cost would be zero.

Total cost = fixed cost + variable cost

= $20,000 + $60,000 = $80,000

5 0
3 years ago
What does a mission statement do?
kiruha [24]

I think C) tells the major goals of a business

Hope it helped

5 0
3 years ago
On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight
Darya [45]

Answer: c. $94,240

Explanation:

On December 31, 2005, one payment has already been made which would mean that only 7 payments are left. As the first of these remaining 7 will be paid the year after, this is an ordinary annuity.

Note payable value = Present value of seven $20,000 payments

= 20,000 * Present value of ordinary annuity of 1 at 11% for 7 years.

= 20,000 * 4.712

= $94,240

5 0
3 years ago
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