1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleks [24]
3 years ago
9

On January 1, 2020, Mirada, Inc. issued five year bonds with a face value of $100,000 and an annual stated rate of 8%. Interest

payments are made annually on December 31st. The bonds were issued for $108,425, when the market rate of interest was 6%. What is Mirada's book value of bonds payable, after the first interest payment (i.e., the balance on December 31, 2020)
Business
1 answer:
Sergio039 [100]3 years ago
3 0

Answer:

Book Value of bond = $106,931

Explanation:

Given:

Face value of bond = $100,000

Issue price = $108,425

Computation:

Interest payment = $100,000 x 8%

Interest payment = $8,000

Interest expense = $108,425 x 6%

Interest expense = $6,505.50

Amortization of premium = $8,000 - $6,505.50

Amortization of premium = $1,494.50

Book Value of bond = $108,425 - $1,494.50

Book Value of bond = $106,931

You might be interested in
The cheap foreign labor argument for protectionism refers to ________.
kifflom [539]
The cheap foreign labor argument for protectionism refers to a lower wage often earned by many foreign workers.
Hope this helps :)
7 0
3 years ago
Read 2 more answers
All of the following lead people to be credit constrained except a person's credit history. savings. collateral. banking regulat
NikAS [45]

Answer:

  • Banking regulations
  • Lower interest rates on bank loans.

Explanation:

Being credit constrained means that one is unable to borrow because the lenders do not think the individual is capable of paying back.

A person's credit history, savings level and collateral are all very useful in determining if they have the ability to pay back debt. Banking regulations do not directly lead to a credit constraint.

Lower interests on bank loans is only given to more creditworthy entities whom the bank feels will be able to pay back. A credit constrained person is risky and will therefore draw a higher rate from banks to balance that risk.

6 0
3 years ago
ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization sha
Rom4ik [11]

Answer:

This is known as social responsibility.

Explanation:

Social responsibility is an ethical theory, in which individuals are accountable for fulfilling their civic duty; the actions of an individual must benefit the whole of society. In this way, there must be a balance between economic growth and the welfare of society and the environment.

6 0
3 years ago
The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
Anna [14]

Answer:

Net present Value (NPV)

Explanation:

The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.

7 0
3 years ago
There have been several instances in the last 150 years when valuable materials such as diamonds have been found contained in gl
Lana71 [14]

Answer:

<u>Lateral moraine</u>

Explanation:

It is important to note the duration of years here; 150 years ago. The Lateral moraine is a very familiar image when dealing with glaciers.

Therefore, the Lateral moraine would be most useful for tracing valuable gold deposits back to their bedrock source area since it is also an unconsolidated debris that is found on the side of glaciers.

6 0
3 years ago
Other questions:
  • The failure to record a purchase of mer chandise on account even though the goods are properly included in the physical inven to
    15·1 answer
  • Which of the following is a true statement? a. ​The perpetrator may start looking coworkers directly in the eye when talking to
    11·1 answer
  • 1. Your roommate's long hours in chem lab finally paid off--she discovered a secret formula that lets people do an hour's worth
    15·1 answer
  • Cost of goods sold
    13·2 answers
  • Which one of the following statements is correct? A) The lessor is primarily concerned with returning the asset at the end of th
    9·1 answer
  • Kerin is a business student interning at Benson and Hodgson, a firm specializing in exports of sophisticated equipment to other
    15·1 answer
  • What does the international banking system consist of?
    10·2 answers
  • The marketing department has hired a new employee. Prior to the new employee's first day at work, you have set up and configured
    13·1 answer
  • A manager of a company is facing an ethical problem. He uses the formal process for ethical decision making to resolve the probl
    6·1 answer
  • A simple random sample of 700 individuals provides 200 Yes responses. a. What is the point estimate of the proportion of the pop
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!