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3 years ago

8

When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amou

nt of the debt should be?

1 answer:

jonny [76]3 years ago

7 0

Should be reflected currently in income, but not as an extraordinary item?

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The U.S. Treasury offers to sell you a bond for $715.00. No payments will be made until the bond matures 15 years from now, at w

nalin [4]

Answer:

interest rate is 2.25 %

Explanation:

given data

sell bond = $715

bond matures = 15 years

redeem = $1,000

solution

we apply here formula that is

amount = principal × $(1+r)^{t}$ ................1

here put value and we get

1000 = 715 × (1+r)^{15}

$(1+r)^{15}$ = $\frac{1000}{715}$

solve it we get

r = 0.022617

so rate is 2.25 %

7 0

2 years ago

Beginning on January 1, 2020, 5 equal deposits are to be made in a fund. Required: Using the appropriate tables, determine the e

8090 [49]

Answer:

Explanation:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV $200,000.00

time 5 years

rate 0.1% = 10/100 = 0.10

$200000 \div \frac{(1+0.1)^{5} -1}{0.1} = C\\$

C $ 32,759.496

The installment will generate 10% interest overtime and provide with a 200,000 dollar count after six years

7 0

3 years ago

Amy's school records describe her as having monochrome blindness. what can we assume about amy's perceptual abilities?

inessss [21]

We can assume that Amy’s perceptual abilities is that she may not be able to see color because she is considered or described to a monochromat base on the findings that is seen from her or base from the school records that has been provided.

5 0

2 years ago

Quantitative Problem 1: Hubbard Industries just paid a common dividend, D0, of $1.30. It expects to grow at a constant rate of 2

blondinia [14]

Answer:

Current price is equal to $16.575

Explanation:

It is given common dividend $D_0=1.30$

Growth rate = 2% = 0.02

Required rate of return = 10% = 0.1

Dividend paid in next year

$D_1=D_0(1+g)=1.30\times 1.02=1.326$

Current price is given by $P_0=\frac{D_1}{R_e-g}$

$P_0=\frac{1.326}{0.1-0.02}=16.575$

Therefore current price is equal to $16.575

6 0

2 years ago

Currently, the yield curve is ascending. A customer believes that the Federal Reserve will start to tighten credit by raising sh

sleet_krkn [62]

Answer:

Short-selling long-term bonds and taking long position on short-term assets

Explanation:

When the yield curve ascends, the long-term bond's price will go down. Hence, do short-sell the long-term bonds. On the other hand, short-term asset's price will be depreciated because Fed tightens credit and raise short-term rate, which is the chance to purchase and make profits from capital gains.

3 0

3 years ago