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Sunny_sXe [5.5K]
2 years ago
13

At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value

that mature in exactly 25 years. David receives $540 in interest ($270 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.4 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much interest income will he report this year if he elects to amortize the bond premium
Business
1 answer:
vagabundo [1.1K]2 years ago
6 0

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

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<h3>What are shares of stock?</h3>

The shares are regarded as the smallest unit of the stock that is owned by a company. There company sometimes sells its shares.

The company may have up to 10 million stock which it can sell to the intended buyers.

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7 0
1 year ago
Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing
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Answer:

If Mo pays cash, the cost of the purchase will be $140.

If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

Explanation:

If Mo pays cash, it implies that she does not get the 3% discount she is entitled to, with the use of her credit card.  Therefore, she will bear the full cost.  However, if she uses the credit card, the discount is $4.20 ($1540 * 97%) and she will pay only $135.80 as the discounted price of the electronic reader.

5 0
3 years ago
Read 2 more answers
In teaching her son to play basketball, mrs. williams initially reinforces him with praise for simply dribbling while standing s
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7 0
3 years ago
A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a l
pav-90 [236]

Answer:

Ending invetory= 200 units

Explanation:

Giving the following information:

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month.

<u>Production - Sales= Ending inventory</u>

350-200= 150

(150 + 350) - 400= 100

(100 + 350) - 250= 200

(200 + 350) - 350= 200 units

Ending invetory= 200 units

7 0
3 years ago
Carrie Tune will receive $31,000 for the next 11 years as a payment for a new song she has written. Use Appendix D for an approx
r-ruslan [8.4K]

Answer:

$184,068.70

Explanation:

Given that

Annual payments = $31,000

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Time period = 11 years

The computation of the present value is shown below:

= Annual payments  × PVIFA factor for 11 years at 12%

= $31,000 × 5.9377

= $184,068.70

Simply we multiplied the annual payments with the PVIFA factor so that the present value could arrive

Refer to the PVIFA table

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