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Oksanka [162]
3 years ago
10

Kasey Corp. has a bond outstanding with a coupon rate of 5.86 percent and semiannual payments. The bond has a yield to maturity

of 4.3 percent, a par value of $2,000, and matures in 24 years. What is the quoted price of the bond
Business
1 answer:
BaLLatris [955]3 years ago
3 0

Answer:

Market price = $2,464.21

Explanation:

coupon rate = 5.86% / 2 = 2.93%

YTM = 4.3% / 2 = 2.15%

face value = $2,000

periods to maturity = 24 x 2 = 48

Present value of face value = $2,000 / (1 + 2.15%)⁴⁸ = $720.42

Present value of coupon payments = $58.60 x {[1 - 1/(1 + 0.0215)⁴⁸ ] / 0.0215} = $1,743.79

Market price = $2,464.21

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If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this wo
luda_lava [24]

Answer: Option (C) is correct.

Explanation:

Correct Option: Political business cycle

If government tax revenues change automatically and in a countercylical direction over the course of the business cycle, this would be called a Political business cycle.

These cycles are present in macroeconomic variables such inflation rate, output and unemployment. There are two types of regime follow in this cycle are as follows:

(i) Regime A consist of expansionary polices which results in a economic growth and inflation. If the inflation rate is high enough then there is a withdrawal of policy.

(ii) Regime B consist of contractionary polices which results in reducing economic growth and inflation. It will become voted out if the unemployment is too high, replaced by Regime A. It generally lead to downward movement of the cycle.

7 0
3 years ago
Heya, guys! I got banned yesterday, but now I'm back! It's good to be back, hahahaha!
erastovalidia [21]
The answer is 72 lol
6 0
3 years ago
Read 2 more answers
Jennifer received $6,000 interest; $4,800 was tax-exempt and $1,200 was taxable. In earning this income, she had $500 of expense
Marat540 [252]

Answer:

The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.

Explanation:

The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 can be calculated using the following formula:

Interest expenses deductible = (Taxable interest / Total interest) * Interest expenses .................... (1)

Where;

Taxable interest = $1,200

Total interest = $6,000

Interest expenses = $500

Substituting the values into equation (1), we have:

Interest expenses deductible = ($1,200 / $6,000) * $500

Interest expenses deductible = 0.20 * $500

Interest expenses deductible =$100

Therefore, the amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.

3 0
2 years ago
Doyle Company issued $226,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is
Thepotemich [5.8K]

Answer:

Dr cash                $226,000

Cr Bonds payable                    $226,000

31st December year 1

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

31st December year 2

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

Explanation:

Upon the receipt of $226,000 from bond issue,cash acount would be debited with $226,000 and bonds payable account would be credited with the same amount.

When land purchased,the land account is debited with $226,000 and cash is credited with $226,000.

The receipt of $74,000 from lease rental means that cash is debited and the lease revenue is credited.

The coupon interest on the bonds=$226,000*5%=$11,300

The coupon interest is debited to interest expense and credited to cash in each of the two years.

find attached t accounts.

Download xlsx
7 0
3 years ago
During the _____ of the product life cycle, the basic goal of promotion is to inform the target audience that a product is avail
Arlecino [84]

Answer:

Introduction Stage

During the Introduction Stage of the product life cycle, the basic goal of promotion is to inform the target audience that a product is available.

Explanation:

The introduction stage is the first stage in the product life cycle where a company tries to build awareness about the product or service

7 0
3 years ago
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