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Genrish500 [490]
2 years ago
6

What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Plea

se specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Business
1 answer:
Softa [21]2 years ago
6 0

Answer:

0.104

Explanation:

We are to determine the yield to maturity of the bond

yield to maturity can be determined using a financial calculator

Cash flow in year 0 = -500

Cash flow each year from year 1 to 6 = 0

Cash flow in year 7 = 1000

YTM = 10.4%

To find the YTM using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

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On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue a
yulyashka [42]

Answer:

Dr Notes Payable 4500

Dr Interest expense 75

Cr Cash 4575

Explanation:

Based on the information given if On April 12, the Hong Company agrees to accept a 60-day which include the amount of $4,500 note from Indigo Company which means that in order to extend the due date on an overdue account the journal entry that Indigo Company would make, when it records payment of the note on the maturity date is :

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3 years ago
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Natasha_Volkova [10]

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2 years ago
Some of our employees choose to have prayer with patients or other employees. this is a practice that is supported by adventist
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3 years ago
Which of the following is not true of generally accepted accounting principles?
andrey2020 [161]

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Explanation:

Choices B to C are true about GAAP.

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<u></u>

Also it is called "Generally Accepted Accounting Principles" for this reason.

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