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jolli1 [7]
3 years ago
7

the Bailey Brothers want to issue 20-year , zero coupon bonds that yield 9% .what price should it charge for these bonds if the

face value is $1000?​
Business
1 answer:
prohojiy [21]3 years ago
6 0

Answer:

the amount charged is $178.43

Explanation:

The computation of the price charged is  shown below:

As we know that

Future value = Present value × (1 + rate)^number of years

So,

Present value = Future value ÷ (1 + rate)^no of years

= $1,000 ÷ (1 + 0.09)^20

= $1,000 ÷ 1.09^20

= $178.43

Hence, the amount charged is $178.43

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Explain the difference between a flat tax and a graduated income tax. in your own words.​
Lelechka [254]

Answer:

flat tax is a set percentage that dies not change

graduated tax changes according to the amount being taxed. usually, the higher the amount, the higher the tax rate is.

8 0
3 years ago
5. The time required and costs involved in an external audit are much higher as compared to internal audits.​
harina [27]

Answer:

True

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is this a question??

3 0
3 years ago
In July, a customer invested $10,000 in the ABC Mutual Fund. In December of the same year, ABC announced a long-term capital gai
mihalych1998 [28]

Answer:

Capital gains distribution is treated as long term

Capital gain from from redemption is treated as short term

Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.

Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

4 0
3 years ago
When a liability is first recorded, it is _____. reported as a current liability. reported as a long-term liability. measured in
bekas [8.4K]

Answer:

measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events.

Explanation:

According to my research on financial accounting terms, the term liability is defined as the state of being legally responsible for something (dept such as auto or student loans). When a liability is first recorded it is measured in terms of the probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. Basically calculating the amount of future payments that need to be made by the dept owner.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli
raketka [301]

Answer:

10.4%

Explanation:

The computation of expected return on a portfolio is shown below:-

Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)

= 5% + 0.60 × (17% - 8%)

= 5% + 5.4%

= 10.4%

Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.

The market return less risk free return is known as market risk premium

3 0
3 years ago
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