Answer:
$12,021
Explanation:
Calculation to determine what Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of:
Using this formula
Interest paid =[Bonds amount*(Priced to yield/2)]
Let plug in the formula
Interest paid = $200,356*( 12%/2)
Interest paid=$200,356*6%
Interest paid =$12,021
Therefore Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of:$12,021
Answer: option A is the correct option.
Cash price = 106.00
Explanation:
Cash price = quoted price + accrued interest
CP = Qp + I ..........................(1)
Quoted price = 105
Accrued interest = ?
STEP1 : FIND INTEREST;
Because the interest is not compounded
Accrued Interest = PRT ..........(2)
P= principal ( the face value)
R = rate per annum
T= period
P= 100
Since the period of payment of the face value was from April 1 to October 1 that means the period is 180 days, that means the 12% rate per annum (360 days), should be 6% rate per halve annum (180 days).
Therefore;
R = 6%
Since rate is applied every 30 days of the period which is 30/360 for an annum. Our period is 180 that's means rate will be applied to 30/180.
Therefore;
T = 30/180
Therefore using equation 2
I = 100 × 6% × (30/180) = 1.00
Accrued interest= 1.00
STEP 2: FIND CASH PRICE
using equation 1
Cash price = 105 + 1.00 = 106.00
Answer:
Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.
Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.
