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Inga [223]
3 years ago
5

A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If an investor's simple annual required r

ate of return is 12 percent with quarterly compounding, how much should the investor be willing to pay for this bond? (Round the answer to two decimal places.)
a) $1,115.57
b) $825.49
c) $941.36
d) $1,391.00
Business
1 answer:
Ludmilka [50]3 years ago
6 0

Answer:

Bond Price​= $1,115.58

Explanation:

Giving the following information:

Par value= $1,000

Cupon= $35

Time= 10*4= 40 quarters

Rate= 0.12/4= 0.03

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 35*{[1 - (1.03^-40)] / 0.03} + [1,000/(1.03^40)[

Bond Price​= 809.02 + 306.56

Bond Price​= $1,115.58

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In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.1. Cervi
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Answer:

The entry to record the sales transactions and related taxes for Quartz Company would be as follows:

                Debit         Credit

Cash        $23,100

Sales                             $22,000

Sales taxes                   $1,100

Cash      $13,780

Sales                        $13,000

Sales taxes                $780

Explanation:

In order to prepare the entry to record the sales transactions for Quartz Company we would have to make the following calculation:

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Therefore, the entry to record the sales transactions for Quartz Company would be as follows:

       

                  Debit         Credit

Cash        $23,100

Sales                             $22,000

Sales taxes                   $1,100

In April 15 the cash is $13,780, which includes a 6% sales tax, therefore, the sales would be calculated as follows:

sales=$13,780/6%

sales=$13,000

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The entry to record the sales transactions and related taxes for Quartz Company would be as follows:

Cash      $13,780

Sales                        $13,000

Sales taxes                $780

5 0
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 The Black Market is a series of dealers who can get you a product that has been repealed from stores, such as 2006 yellow Tide, which cleaned the products too good, forcing the company to take it off the market because they wanted to continue to sell products that they claim better than the last. The Black Market is illegal and if currently under high investigation by governments all over the world. So, if the Black Market practice itself is illegal and all actions taken while in the Black Market are as well, I think you can finalize your answer. Hope this helped!
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