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vovangra [49]
3 years ago
8

What will happen to the market value of a bond if interest rates decrease?

Business
1 answer:
enot [183]3 years ago
8 0

Answer:

b. The market value will increase

Explanation:

In the case when the rate of the interest decrease so the market value of the bond would be increased. As the market value of the bond and the rate of interest has an inverse relationship between them. In the case when the rate of interest increased than the market value of the bond decreased and vice versa

Therefore option b is correct

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Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2016. Company manag
Arte-miy333 [17]
I don’t know what you’re telling me to do here! Where’s the question ?
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3 years ago
You're prepared to make monthly payments of $390, beginning at the end of this month, into an account that pays 7 percent intere
faust18 [17]

Answer:

$ 11,111,000

Hope this helps

mark me as brainloest

8 0
3 years ago
Adolescent group members may share information too soon or even reveal inappropriate information about themselves, for which of
dusya [7]

Answer:

Question: Adolescent group members may share information too soon or even reveal inappropriate information about themselves, for which of the following purposes?

Answer: To impress other members

Explanation:

There are various reasons why it can be said that adolescent/teen may share too much information about themselves: it can be as a result of i) peer pressure; ii) need to outshine other members of the group and gain a certain level of reputation within the group: iii) it may also be just for fun.

3 0
3 years ago
Assume that the Assembly Department allocates overhead based on machine hours, and the Finishing Department allocates overhead b
kap26 [50]

Answer:

$9.2 0

Explanation:

The calculation of the Finishing Department is shown below:-

Plant - wide overhead rate = Total overhead ÷ Total machine hour

= ($470,000 + $737,900) ÷ ($470,000 + 133,950)

Plant wide overhead rate = $2 per machine hour

Machine hour for product = 4.2 + 0.4

= $4.6 machine hour

Applied overhead = Machine hour for product × Plant wide overhead rate

= $4.6 × $2

= $9.2 0

6 0
3 years ago
On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive
bazaltina [42]

Answer:

On 31 December 2019: Debit Compensation expense for $39,667; and Credit Paid-in capital from share options for $39,667.

On 31 December 2020: Debit Compensation expense for $39,667; and Credit Paid-in capital from share options for $39,667.

On 31 December 2021: Debit Compensation expense for $41,067; and Credit Paid-in capital from share options for $41,067.

On 06 January 2022: Debit Cash for $48,000; Debit Paid-in capital from share options for $22,400; Credit Common stock for $3,200; and Credit Paid in capital in excess of par- common stock (balancing figure) for $67,200.

Explanation:

Note: See part b of the the attached excel file for the journal entries

Also note that before the journal entries are recorded, the current compensation expense for year 2019, 2020 and 2021 are first calculated. See part a of the attached excel file for the calculation of the the current compensation expense for year 2019, 2020 and 2021.

In part a of the attached excel file, the estimated compensation cost for 2019, 2020 and 2021 are calculated as follows:

Estimated compensation cost for 2019 = Option value on the grant date * Number of executives * (1 - Expected option forfeited rate) * Number of shares in the option = $14 * 50 * (1 - 15%) * 200 = $119,000

Estimated compensation cost for 2020 = Option value on the grant date * Number of executives * (1 - Expected option forfeited rate) * Number of shares in the option = $14 * 50 * (1 - 15%) * 200 = $119,000

Estimated compensation cost for 2021 = Option value on the grant date * (Number of executives - Actual executives turnover for the entire service period) * Number of shares in the option = $14 * (50 - 7) * 200 = $120,400

On 06 January 2022, the calculation of the entries used in the part b of the attached excel file are as follows:

w.1. Cash = Number of executives who exercise their options * Number of shares in the option * Purchase price per share after completing a 3-year service period = (8 * 200 * $30) = $48,000  

w.2. Paid-in capital from share options = Number of executives who exercise their options * Number of shares in the option * Option value on the grant date = (8 * 200 * 14) = $22,400

w.3. Common Stock = Number of executives who exercise their options * Number of shares in the option * Sahre par value = (8 * 200 * $2) = $3,200

w.4. Paid in capital in excess of par- common stock (balancing figure)  = Cash + Paid-in capital from share options - Common Stock = $48,000 + $22,400 - $3,200 = $67,200

Download xlsx
6 0
3 years ago
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