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3 years ago

If a one-year bond has a face value of $5,000 and is sold for $4,500, what is the interest rate on the bond?

Business

1 answer:

Arada [10]3 years ago

6 0

Answer:

11.1%

Explanation:

The face value is $5000

It is sold for $4,500

Therefore the interest rate of this bond can be calculated as follows

$5000-$4500

= 500

500/4500 × 100

= 0.111 × 100

= 11.1%

Hence the interest rate is 11.1%

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Last year, Michelson Manufacturing reported $10,250 of sales, $3,500 of operating costs other than depreciation, and $1,250 of d

Margarita [4]

Answer and Explanation:

The computation is shown below:

Particulars Last year Current year

Sales $10,250 $10,250

Operating cost -$3,500 -$3,500

Operating income $6,750 $6,750

less:

Interest expense

(6.5% of 3,500) -$227.50 -$227.50

depreciation expense -$1,250 -$1,975 ($1,250 + $725)

Earning before tax $5,272.50 $4,547.50

Less: Income tax

at 21% -$1,107.23 -$954.98

Net income $4,165.27 $3,592.53

Now the net cash flow is

Net income $4,165.27 $3,592.53

Add:

Depreciation $1,250 $1,975

Total net cash flows $5,145.27 $5,567.53

Change is $422.26

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3 years ago

Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden. For each of the following transactions th

Vaselesa [24]

That’s a lot that you put together

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3 years ago

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The stan

slamgirl [31]

Answer:

Standard activity level= 100,000 units

Explanation:

Giving the following information:

Croissant Company's standard fixed overhead cost is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows 1 direct labor hour per unit.

Standard activity level= 600,000/6= 100,000 units

3 0

4 years ago

The characteristic that all forms of direct marketing have in common is that they:

dlinn [17]

The characteristic that all forms of direct marketing have in common is that they:

are carried out by agents or brokers.

involve face-to-face or teleconferencing sessions with the customer.

include some type of activity that directly links manufacturers to the ultimate consumer.

make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.

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3 years ago

In the Unified Process (UP) methodology, "most of the Requirements activities" occurs during the _____ phases.

qwelly [4]

Answer:

Inception and Elaboration phases

Explanation:

INCEPTION PHASES can be defined as the phase in which the vision of the end-product is been define as well as the associated business case and as well enables the defining the overall scope of a project.

The ELABOTATION PHASE on the other hand can be seen as the phase which help to refine the definition of a product as well help to develop a more precise plan for its development as well as the deployment.

Therefore In the Unified Process (UP) methodology, "most of the Requirements activities" occurs during the INCEPTION AND ELABORATION phases because unified process is a software development process that enables as well uses the UML language to help represent models or type of the software system to be developed.

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4 years ago