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Illusion [34]
3 years ago
8

Seether Co. wants to issue new 15-year bonds for some much needed expansion projects. The company currently has 10.6 percent cou

pon bonds on the market that sell for $1,000.00, make semiannual payments, and mature in 15 years. What coupon rate should the company set on its new bonds if it wants them to sell at par
Business
1 answer:
Solnce55 [7]3 years ago
6 0

Answer: 10.6%

Explanation:

The bond is already selling in the market at Par. This means that the current coupon rate is the right one to sell it at if the company wants to sell at par.

We can prove this however.

If the company wants to sell the bonds at par, it will have to issue at a coupon rate that is the equivalent of the Yield to maturity because bonds are issued at par when the YTM and the Coupon rate are equal.

To find the rate, use an excel worksheet or a financial calculator.

Present Value = -1,000

Number of periods = 15 * 2 = 30 semi annual periods

Payment/ PMT = (10.6% * 1,000) / 2 = 106/2 = $53

Future Value/ FV = Par value of $1,000

Rate = 5.3%

Make it an annual figure = 5.3 * 2 = 10.6%

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Answer:

C. Debit Service Fee Expense for $6

Explanation:

McGregor only uses the services of the Credit Card company for their own activities, therefore, aside from the income of the service provided of $200, the credit card company will charge McGregor for the use of credit card services by the customer.

As such, since it is the decision of the customer to pay with a credit card, then the customer must bear the service fee expense of 3% of the cost of the service which is $6. Hence, Option C is correct. It means aside the $200 for the service, there is a need to debit service fee expense for $6

Option D is wrong because only $200 is service revenue, it has to be clearly stated that the 3% of $6 is different from the service revenue and should be debited as service fee.

If the customer is reluctant to make the payment, then there is an allowance to pay cash instead of using the credit card service.

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aksik [14]

Answer:

B) Norming

Explanation:

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At this stage, there is an increase in the identification of the role of each member and their goal in a team. There is a decrease in previous conflicts and an increase in group identity, which helps to develop tasks more effectively and jointly, where each member has a well-defined responsibility and the leader has the essential role of regulating the group and assisting in the development the responsibilities of each one, which will lead to effectiveness in achieving the team's objectives.

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All liabilities involve a probable ____ sacrifice of economic benefits and arise as a result of _____ transactions or events.
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All liabilities involve a probable future sacrifice of economic benefits and arise as a result of past transactions or events.

A liability is a debt that a person or business has, typically in the form of money. Through the transmission of economic benefits like money, products, or services, liabilities are eventually satisfied. Assets and liabilities can be compared. Assets are items you own or owe money to; liabilities are things you owe money to or have borrowed. A liability is an unfulfilled or unpaid obligation owed by one party to another. A financial liability is an obligation in the world of accounting, but it is more specifically characterized by previous business transactions, events, sales, exchanges of goods or services, or anything else that will generate income in the future.

More about liabilities brainly.com/question/14921529

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D. foreign real national income falls and wages rates rise. 
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