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jok3333 [9.3K]
3 years ago
10

Scottie Adams Bird Supplies issued 14% bonds, dated January 1, with a face amount of $140,000 on January 1, 2021. The bonds matu

re in 2031 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021
Business
1 answer:
Georgia [21]3 years ago
4 0

Answer:

$156,058

Explanation:

Missing word <em>"PV of annuity due of $1: n = 20; i = 6% is 12.15812 *PV of ordinary annuity of $1: n = 20; i = 6% is 11.46992 **PV of $1: n = 20; i = 6% is 0.31180"</em>

<em />

n = 20, i = 6%

Periodic interest payments of the bonds =  Face value of the bonds * Stated rate of interest * 6 months/12 months

= $140,000 * 14% * 6 months/12 months

= $9,800

Cash Flow                           Amount        Table Value   Present Value

Interest payments              $9,800           11.46992           $112,405

Maturity Value                    $140,000        0.31180             <u>$43,653</u>

Issue Price of the bonds at January 1, 2021                    <u>$156,058</u>

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3 years ago
A ______ the supply curve represents a change in supply while a ______ the supply curve represents a change in the quantity supp
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A <u>shift </u><u>of</u> the supply curve represents a change in supply while a <u>movement </u><u>along</u> the supply curve represents a change in the quantity supplied.

Supply is defined in economics as the total amount of a specified product or service offered to consumers by a supplier at a specified time and price level. This is usually determined by market movements. For example, increased demand may prompt suppliers to increase supply.

In economics, supply is the number of goods that an individual or firm makes available in the market. This refers to the amount you are producing at a particular point in time. For example, if Apple made 100 of its iPhones, that would be the product to be launched. Supply can refer to the quantity available at a particular price or the quantity available across the price range displayed on the chart.

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7 0
2 years ago
You own a fixed-income asset with a duration of five years. If the level of interest rates, which is currently 8%, goes down by
I am Lyosha [343]

Answer:

0.4629%

Explanation:

Given:

Duration of fixed assets (D) = 5 year

Interest rate (r) = 8% = 8/100 = 0.08

Decrease in Interest rate point(ΔY) = 10 basis = 10/100 = 0.01%

Computation:

D* = D / (1 + r)

D* = 5 / (1 + 0.08)

D* = 5 / 1.08

D* = 4.6296

Computation:

ΔP/P = D* × ΔY

= 4.6296 × 0.01%

= 0.4629%

Therefore, Price of the assets go up to 0.4629%.

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3 years ago
Evan accidentally quoted a customer a price for new flooring that was more than $1,000 less than the actual price. His manager h
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The Manger Has exercised <u>Concurrent Control</u> on Evan by taking the decision to retrain him.

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Concurrent control as the name suggest is the type of control that takes place in the Real-time or at the time the mistake occur.It is a type of a ongoing control and is a continuous process.

This type of control is used to monitor those employees who  directly interact with the customers

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3 years ago
A ball rolls across a floor with an acceleration of 0.100 m/s2 in a direction opposite to its velocity. The ball has a velocity
lilavasa [31]

Answer:

a. 4.15 m/s.

Explanation:

Given the following data;

Acceleration, a = -0.100 because it's in the opposite direction.

Final velocity = 4

Distance = 6

To find the initial velocity of the ball, we would use the third equation of motion;

V^{2} = U^{2} + 2aS

Where;

  • V represents the final velocity measured in meter per seconds.
  • U represents the initial velocity measured in meter per seconds.
  • a represents acceleration measured in meters per seconds square.
  • S represents the displacement measured in meters.

V^{2} = U^{2} + 2aS

Making U the subject, we have;

U^{2} = V^{2} - 2aS

Substituting into the equation, we have;

U^{2} = 4^{2} - 2*(-0.100)*(6)

U^{2} = 16 + 1.2

U^{2} = 17. 2

Taking the square root of both sides;

U = 4.147m/s ≈ 4.15m/s

Therefore, the initial speed of the ball is 4.15m/s.

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