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borishaifa [10]
3 years ago
14

Assuming the market interest rate is 10% per annum, how much would Coronado Industries record as a note payable if the terms of

the loan with a bank are that it would have to make one $128000 payment in two years
Business
1 answer:
Kryger [21]3 years ago
7 0

Answer: $105,785

Explanation:

Coronado would need to record the note at the present value of $128,000 given a rate of 10% and a 2 year maturity.

= 128,000 / ( 1 + 10%)²

= 128,000/ 1.21

= 105,785.12

= $105,785

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aliina [53]

Answer: 1. A . Treasury bonds are not completely riskless, since their prices will decline when interest rates rise.

2. A. The New York City government

3. B. Municipal bonds

4. A. An investor from Kansas that invests in a municipal bond issued by the State of Kansas will pay neither state nor federal taxes on the bond’s coupon payments

5. B. Treasury bonds

Explanation:

1. Treasury Bonds are known as the safest bonds in the world and so are generally considered risk-less. However this is not so as they still fall victim to Interest rate risk which is the risk that their prices will decline when interest rates rise because bond prices are inversely related to price.

2. The City of New York issued to bonds in question so it is a New York City Government bond.

3. Municipal Bonds are issued by a state, county or a municipality so the above is a Municipal bond as it was issued by the City of New York.

4. Municipal Bonds attract no Federal taxes and when buying a Municipal bond as a resident of the Municipality you are in, you will.not get charged the Municipal taxes either on the bond coupon payments.

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3 years ago
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damaskus [11]

Answer:

B. consumption bundles

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Preferences of buyers are independent not prices and income level.

Rather it is dependent on consumption bundle. That is the set of goods that will give highest satisfaction to the buyer.

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