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
devlian [24]
3 years ago
7

You are buying a bond at a clean price of $1,140. The bond has a face value of $1,000, a coupon rate of 3.8 percent, and pays in

terest semiannually. The next coupon payment is one month from now. What is the dirty price of this bond
Business
1 answer:
DanielleElmas [232]3 years ago
8 0

Answer:

$1,155.83

Explanation:

The computation of dirty price of this bond is shown below:-

Clean Price = $1,140  

Face Value = $1,000  

Interest = 3.80%  

Interest for 5 month = Face Value × Interest × Time  

$1,000 × 3.8% × 5 ÷ 12  

$15.83  

Dirty Price = Clean Price + Accrued Interest

= $1,140 + $15.83  

= $1,155.83

Therefore for computing the dirty price of bond we simply add clean price with accrued interest.

You might be interested in
Aubree Blake is a politician who leads campaigns for organic foods in the rural counties of her country. Several farmers in diff
Mariana [72]

Answer:

A. People marketing.

Explanation:

In this scenario, several farmers in different areas have started organic farming because of the popularity of Blake's campaigns; even uneducated people trust the advantages of the campaign because of Blake's involvement in it. This is a people marketing strategy.

8 0
3 years ago
Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the c
Ipatiy [6.2K]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the break-even point in units and sales dollars:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 354,000 / (175 - 116)

Break-even point in units= 6,000

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 354,000 / (59 / 175)

Break-even point (dollars)= $1,050,000

<u>Now, the margin of safety and margin of safety rate:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= (10,000*175) - 1,050,000

Margin of safety= $700,000

Margin of safety ratio= (current sales level - break-even point)/current sales level

Margin of safety ratio= 700,000 / 1,750,000

Margin of safety ratio= 0.4= 40%

5 0
3 years ago
Define the term Agriculture​
Rufina [12.5K]

Answer:

the science or practice of farming, including cultivation of the soil for the growing of crops and the rearing of animals to provide food, wool, and other products. Agriculture was the key development in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that enabled people to live in cities.

Explanation:

5 0
3 years ago
Read 2 more answers
6. For a business that uses the allowance method of accounting for uncollectible receivables: (a) Journalize the entries to reco
Vika [28.1K]

Explanation:

The journal entries are shown below:

1 Bad debt expense $18,000  

              To Allowance for doubtful account  $18,000

(Being the bad debt expense is recorded)

2 Allowance for doubtful account $350  

                             To Accounts receivable  $350

(Being the written off amount is recorded)

3 Accounts receivable $200  

                         To Allowance for doubtful account  $200

[Being account reinstated]  

Cash $200  

               To Accounts receivable  $200

(Being the payment is received)

4 Cash $400  

        Allowance for doubtful account $200  

                         To Accounts receivable  $600

(Being the amount received is recorded)

5 0
3 years ago
Everett Company has outstanding 30,000 shares of $50 par value, 6% preferred stock and 70,000 shares of $1 par value common stoc
hoa [83]

Answer:

See explanation section.

Explanation:

Requirement A

If the preferred stock is cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

Cash dividend's for preferred stock = $0

As there is no declaration of cash dividend for the first year.

As the preferred stock is cumulative, preferred dividends for the first year will be given in the 2nd year.

2nd year = Cash dividend's for common stock = $310,000 - $8,400

= 301,600

Cash dividend's for preferred stock = $4,200 + $4,200 = $8,400

<em>Calculation:</em> 1st year dividend = 70,000 × $1 × 6% = $4,200. It will remain same in the 2nd year for the preferred stock.

3rd year = Cash dividend's for common stock = $90,000 - $4,200

= $85,800

Cash dividend's for preferred stock = $4,200

Preferred dividend's remain same for the 3rd year too.

Requirement B

If the preferred stock is non-cumulative, cash dividends paid to each class of stock is as follows:

1st year = Cash dividend's for common stock = $0

Cash dividend's for preferred stock = $0

As there is no declaration of cash dividend for the first year.

As the preferred stock is non-cumulative, preferred dividends for the first year will not be given in the 2nd year.

2nd year = Cash dividend's for common stock = $310,000 - $4,200

= 305,800

Cash dividend's for preferred stock = $4,200

<em>Calculation:</em> 2nd year dividend = 70,000 × $1 × 6% = $4,200.

3rd year = Cash dividend's for common stock = $90,000 - $4,200

= $85,800

Cash dividend's for preferred stock = $4,200

Preferred dividend's remain same for the 3rd year too.

5 0
3 years ago
Other questions:
  • Tishian's funeral home has been in business for over 80 years. throughout its history, the firm has been a family-run operation.
    8·1 answer
  • Which type of debt is the least attractive for a consumer
    6·1 answer
  • Demand is __________________ when the price change results in a relatively larger change in quantity demanded. People __________
    9·1 answer
  • Change champions are more likely to make mistakes:_________.
    5·1 answer
  • The following requirements are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies
    7·1 answer
  • You are a new manager at a plumbing supply manufacturer where there are an unusually high number of returns for a new aerator us
    11·1 answer
  • you can save on interest and reduce the time it takes to pay off a credit card balance if you pay more than the minimum amount d
    10·1 answer
  • How does the WTO promote global free trade?
    6·1 answer
  • Early majority tend to lead and want to know others have been successful with a
    5·1 answer
  • 1. Which of the following is true about finding the present value of cash flows?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!