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Leto [7]
2 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]2 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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g A monopoly is a market that has Group of answer choices Only one buyer. Only one seller. Many sellers who sell differentiated
Dahasolnce [82]

Answer:

Only one seller.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.

A public power company refers to a company that provides power (electricity) utility to the general public of a society.

In conclusion, a monopoly is a market that has only one seller.

5 0
3 years ago
A cylindrical can that has a capacity of 20 m3 will be made. The metal used to build the top costs $10 per square meter while th
Alchen [17]

The dimensions of the cylinder can be used to minimise cost of manufacture.

<h3>How to we find minimised cost?</h3>

Let's ignore the metal's thickness and assume that the material cost to manufacture is precisely proportionate to the surface area of a perfect cylinder.

A=2πr(r+h)

Given that V=1000=r2h and h=1000=r2, we can write

A=2πr(r+1000πr2)

A=2πr2+2000r−1

By setting the derivative to zero, we may determine the value of r that minimises A:

A′=4πr−2000r−2

0=4πr−2000r−2

2000r−2=4πr

2000=4πr3

r=500π−−−√3

r=5.419 + cm

h=1000πr2=10.838 + cm

The can with the smallest surface area has a volume of 1000 cm 3 and measures 5.419+ cm in radius and 10.838+ cm in height. The can has a surface area of 553.58 cm 2. Given a constant volume, the cylinder with diameter equal to height has the least surface area.

Can surface area (cm2) versus. radius (cm), where capacity = 1000cm 3.

Learn more about manufacturing here:

brainly.com/question/17111259

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8 0
1 year ago
The contractor proposed $x,xxx,xxx for manufacturing labor contemplating the following full time equivalent (FTE) for the three
Lady_Fox [76]

Answer:

$659,277

Explanation:

The computation of the manufacturing labor dollars per year over the three year period of performance is shown below:

For 3 year it is

= 3 × 1,800 hours × $31

= $167,400

For 4.5 years, it is

= 4.5 × 1,800 hours × $31 × 1.025

= $257,377.50

Foe 4 years, it is

= 4 × 1,800 hours × $31 × 1.025 × 1.025

= $254,499.50

So, the manufacturing labor dollars per year is

= $167,400 +  $257,377.50 + $254,499.50

= $659,277

4 0
3 years ago
Fundamentals of Supply are view for the point of the
ivanzaharov [21]

Answer:

Supply side is the view point of the Firms or the Businesses.

Explanation:

As the law of demand deals with the consumers side, the law of supply deals with the suppliers or the firms/businesses.

this tries to explain the factors that affect the supply, such as the prices of the substitutes and complements, the price of a commodity itself, taxes, government subsidies, technological influences, etc...

in this question, the 1st option, consumer is wrong. However, in certain situations, Government can be acted as a "supplier" (if there is a government monopoly on the supply of a good or a service", and government is a heavy influencer of supply through the implementaion of taxes and subsidies!  

5 0
3 years ago
BREMCO recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per
Paraphin [41]

Answer:

14.60%

Explanation:

The computation of market rate of return is shown below:-

Market rate of return = (Dividend × (1 + Growth rate)) ÷ Current price of stock + Growth rate

= ($2.8 × (1 + 3.8%)) ÷ 26.91 + 0.038

= ($2.8 × 1.038) ÷ 26.91 + 0.038

= $2.9064 ÷ 26.91 + 0.038

= 0.108 + 0.038  

= 14.60%

So, for computing the market rate of return we simply applied the above formula.

3 0
3 years ago
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