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ElenaW [278]
2 years ago
13

DeKay Dental Supplies issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest semiannually. This is a partial

bond amortization schedule for the bonds.
Payment Cash Effective interest Decrease in Balance Outstanding Balance
9,080
1 400 409 9 9,089
2 400 409 9 9,089
3 400 409 9 9,107
4 400 410 10 9117

Requied:
What is the stated annual rate of interest on the bonds?
Business
1 answer:
valina [46]2 years ago
7 0

Answer:

8%

Explanation:

Calculation to determine the stated annual rate of interest on the bonds

First step is to calculate Semi annual coupon rate

Semi annual coupon rate= 400 ÷ $10,000

Semi annual coupon rate= 4%

Now let determine the Annual rate of interest

Annual rate of interest= 4% × 2 (Semiannually)

Annual rate of interest= 8%

Therefore the stated annual rate of interest on the bonds is 8%

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When a firm or store offers a price reduction to customers who buy during off-peak periods throughout the year, we say the firm
german

Answer:

Seasonal.

Explanation:

A trade discount can be defined as a reduction in the price of goods given by a manufacturer to a wholesaler or retailer when they buy units of goods in larger quantities. This ultimately implies that, a trade discount is a percentage reduction in price given by a manufacturer to a wholesaler or retailer in order to encourage them to buy the goods in larger quantities and thus, increase revenue and profits.

Also, a seasonal discount can be defined as a reduction in the price of goods given during off-peak periods (off-season) in order to encourage customers to purchase a particular product.

Hence, when a firm or store offers a price reduction to customers who buy during off-peak periods throughout the year, we say the firm is giving a seasonal discount.

5 0
3 years ago
An investment has the following characteristics:ATIRRP: After-tax IRR on total investment in the property: 9.0%BTIRRE: Before-ta
Strike441 [17]

Answer:

Option (A) is correct.

Explanation:

Given that,

After-tax IRR on total investment in the property = 9.0%

Before-tax IRR on equity invested = 17%

Before-tax IRR on total investment in the property = 12%

t: Marginal tax rate = 0.40

Break Even Interest rate (neither favorable nor unfavorable):

= After tax IRR on total investment ÷ (1 - Tax rate )

= 9% ÷ (1 - 0.40)    

= 9% ÷ 0.60

= 15%

7 0
3 years ago
What is the term for the distance between people?
slavikrds [6]
The answer for sure proximity !!
7 0
3 years ago
A company's had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net in
erica [24]
<span>A company's had fixed interest expense of $5,000, its income before interest expense and income taxes is $17,000, and its net income is $9,400. the company's times interest earned ratio equals to 3.4 times. $17000 / $ 5000 = 3.4 times</span>
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3 years ago
What is bond laddering?
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C?
i think I’m not really sure i get mixed up 

5 0
3 years ago
Read 2 more answers
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