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Artemon [7]
2 years ago
15

anta Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and in

terest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 10 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $901 December 31, Year 1 $60 $90 $30 931 December 31, Year 2 60 93 33 964 December 31, Year 3 60 96 36 1,000 Required: 1. What was the bond's issue price
Business
1 answer:
monitta2 years ago
7 0

Answer:

$901

Explanation:

The bond issue price is the item shown on the amortization schedule which is $901 in this case.

However, we could recompute the bond price using a financial calculator bearing in mind that the financial calculator would be set to its default end mode before making the following inputs:

N=3(number of annual coupons in 3 years)

PMT=60(annual coupon=face value*coupon rate=$1000*6%=$60)

I/Y=10(annual market rate of interest for the bond is 10%)

FV=1000(the face value is  $1000)

CPT

PV=$900.53(closest to $901 when rounded to the nearest whole dollar amount)

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a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.

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When a party comes into possession of a property not by contractual agreement, they are referred to as constructive bailee and are obligated to take care of the property till it is returned to the owner.

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This is common when a person forgets his property in a place.

In the given scenario the college (Dean of Business College) became a constructive bailee when they recieved the misplaced textbook. So they are obligated to care for the textbook till it get back to Lacy or be held liable for any harm done

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With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.

<h3>What is homemade leverage?</h3>

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