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NARA [144]
3 years ago
11

What is the approximate market value of a $1,000 corporate bond that pays 8 percent interest when comparable bonds are paying 8

percent interest?A. $800B. $900C. $1000D. $1125E. $1625
Business
1 answer:
Alex3 years ago
6 0

Answer:

C. $1000

Explanation:

The computation of the approximate market value is shown below:

Current yield = Annual coupon payment ÷ market value

8% = ($1,000 × 8%) ÷ market value

8% = $80 ÷ market value

So, the market value is

= $80 ÷ 0.08

= $1,000

Hence, the approximate market value is $1,000

Therefore the correct option is c.

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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1. Why might a person assume that Ms. White would be doing well financially?
GuDViN [60]

Answer:

I think you’re a person assumes and Mr. White will be doing well financially is because she is that the one who is teaching people how to financially afford people are going to think she’s doing well financially

Explanation:

It’s really simple she’s doing she’s teaching everybody how to initially a food thing should be good

8 0
3 years ago
In a university setting, each student is paired with another student for the purpose of getting assignments and turning in work
Inessa05 [86]

Answer:

one-to-one Unary

Explanation:

It is one-to-one binary  relationship because one student is grouped with one student only. Unary because they have the same relationship in the university  and share the same class and learning procedures.

In binary relationships there are various entities for example in this situation if the university or colleges were different then it would have been binary .

In the given question only one student is teamed up with one student therefore it is one to one not one to many.

7 0
3 years ago
Kevin lives in New York City and runs a business that sells pianos. In an average year, he receives $735,000 from selling pianos
Tom [10]

Answer:

Implicit Cost and Explicit Cost

Identification of Van's cost as either an implicit cost or an explicit cost of selling pianos:

Implicit costs:

The rental income Van could receive if he chose to  rent out his showroom

The salary Van could earn if he worked as an accountant

Explicit costs:

The wages and utility bills that Van pays

The wholesale cost for the pianos that Van pays  the manufacturer

2. Determining Van's accounting and economic profit of his piano business.

Profit

(Dollars)

                         Accounting Profit    Economic Profit

Sales revenue      $735,000             $735,000

Cost of pianos       (435,000)             (435,000)

Wages and Utility  (255,000)             (255,000)

Opportunity costs:

Rent                                                        (10,000)

Salary as an accountant                       (24,000)

Profit                      $45,000                $11,000

3. Alternatively, the economic profit he would earn as an accountant would be_$34,000___.

4. If Van's goal is to maximize his economic profit, he stay in the piano business.

False

5. Van is not earning a normal profit because his profit is negative.

B. False

Explanation:

Van's economic profit or loss is the difference between the revenue received from the sale of the pianos and the costs of all inputs used, as well as opportunity costs of forgone rent revenue and salary income as an accountant.  To compute economic profit, opportunity costs and explicit costs are deducted from revenues earned.  But to compute accounting profit, only the explicit costs are deducted from revenues earned.

6 0
3 years ago
The first step in the budgeting process is the preparation of the
lesantik [10]
I believe its <span>the preparation of the tax</span>
8 0
3 years ago
For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor cos
Phoenix [80]

Answer:

Amount of overhead debited to Work in Process Inventory is $364,000

Explanation:

Direct labor cost = Total labor cost - Indirect labor cost

Direct labor cost = $720,000 - $200,000 = $520,000

Overhead debited to Work in Process Inventory= 70% * Direct labor cost

=70% * $520,000

=$364,000

6 0
3 years ago
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