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Leto [7]
3 years ago
11

Awanda buys a $1000 par value 11-year bond with 8% semiannual coupons. The redemption value is equal to the par value. Awanda bo

ught the bond at a premium to yield 4% convertible semiannually. Determine the interest portion of the 17th coupon
Business
1 answer:
Morgarella [4.7K]3 years ago
5 0

Answer:

interest portion (17th payment) = $22.24 ≈ $22

premium amortization portion (17th payment) = $17.76 ≈ $18

Explanation:

the market price of the bond:

PV of face value = $1,000 / (1 + 2%)²² = $646.84

PV of coupon payments = $40 x 17.658 (PV annuity factor, 2%, 22 periods) = $706.32

market price = $1,353.16

the journal entry to record the investment in bonds:

Dr Bonds receivable 1,000

Dr Premium on bonds receivable 353.16

    Cr Cash 1,353.16

I prepared an amortization schedule using excel to determine the interest portion of the 17th payment and the premium amortization portion.

interest portion (17th payment) = $22.24 ≈ $22

premium amortization portion (17th payment) = $17.76 ≈ $18

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Sally would only agree to a second date with Andy if she sees him leave a generous tip for the waiter on their first dinner date
Nikitich [7]

Answer:

The correct answer is letter "A": Screening mechanism.

Explanation:

The screening mechanism is the activity in which people identify good qualities in others by evaluating their actions and matching them with their own behavior so they can eventually qualify those other people as suitable for them or not.

In the example, <em>Sally must consider a good practice to give generous tips to waiters since only if Andy, her date, does such a thing, she will consider dating him again. What Sally conducted is an example of a screening mechanism.</em>

5 0
3 years ago
On January 1 of the current year, the Barton Corporation issued 12% bonds with a face value of $88,000. The bonds are sold for $
gogolik [260]

Answer:

b.$11,088

Explanation:

The computation of the interest expense is shown below

= Cash interest + discount amortized

= ($88,000 × 12%) + ($88,000 - $85,360) ÷ 5 years

= $10,560 + $528

= $11,088

Hence, the interest expense is $11,088

Therefore the correct option is b.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

6 0
3 years ago
How do you do you do a budget​
givi [52]

Note your net income

The first step in creating a budget is to identify the amount of money you have coming in. Remember to subtract your deductions, such as for Social Security, taxes, 401 and flexible spending account allocations, when creating a budget worksheet. Your final take-home pay is called net income, and that is the number you should use when creating a budget.

Track your spending

It’s helpful to keep track of and categorize your spending so you know where you can make adjustments. Doing so will help you identify what you are spending the most money on and where it might be easiest to cut back. Begin by listing all your fixed expenses. These are regular monthly bills such as rent or mortgage, utilities or car payments.

It’s unlikely you’ll be able to cut back on these, but knowing how much of your monthly income they take up can be helpful.

Set your goals

Long-term goals, such as saving for retirement or your child’s education, may take years to reach. Remember, your goals don’t have to be set in stone, but identifying your priorities before you start planning a budget will help.

Make a plan

With your fixed expenses, you can predict fairly accurately how much you’ll have to budget for. Use your past spending habits as a guide when trying to predict your variable expenses. You might choose to break down your expenses even further, between things you need to have and things you want to have.

Adjust your habits if necessary

Once you’ve done all this, you have what you need to complete your budget. Having documented your income and spending, you can start to see where you have money left over or where you can cut back so that you have money to put toward your goals. Want-to-have expenses are the first area to look for spending cuts. Try adjusting the numbers you’ve tracked to see how much money that frees up.

Lastly, if the numbers still aren’t adding up, you can look at adjusting your fixed expenses. You might be surprised at how much extra money you accumulate by making one minor adjustment at a time.

Keep checking in

Whatever the reason, keep checking in with your budget following the steps above.

3 0
3 years ago
Read 2 more answers
Suppose Natasha currently makes $50,000 per year working as a manager at a cable TV company. For the soap making opportunity she
valina [46]

Answer:

She should quit her job, become an entrepreneur and  choose the soap making for the highest profit/ income of $70,000

Explanation:

Step 1: Calculate Natasha's annual profit if she should start the soap business

The annual profit from Soap Business = Annual Revenue - Costs for the year

The annual profit = $465,000- $395,000 = $70,000

Step 2: Calculate Natasha's annual profit if she should start the internet opportunity she anticipates

The annual profit for the internet business = Annual Revenue - Costs for the year

= $3,275,000 - $3,250,000= $25,000

Since she is to make a choice between three options,

1. Manager Job per year = $50,000

2. Soap Making= $70,000

3. Internet Opportunity= $25,000

Then she should quit her job, become an entrepreneur and  choose the soap making for the highest profit of $70,000

7 0
3 years ago
A target audience is a the whole group of consumers that will see an advertisement or an advertising campaign. T/F
ELEN [110]

Answer:

The correct answer is "True"

Explanation:

In marketing, A target audience is a group of customers classified as the targets or for a particular advertisement or message.

6 0
3 years ago
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