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2 years ago

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Which statement or statements apply to a bond which is selling at a premium? I. The market value exceeds the par value. II. The

selling rate is above 100. III. It is sold by corporations, not by the government. A. I and II b. I only c. III only d. I, II, and III.

1 answer:

kherson [118]2 years ago

6 0

Answer:

Its A

Explanation:

I took the test

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Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 4 percent 2 years ago. The bond cu

slega [8]

Answer:

Explanation:

The pretax cost of debt is the YTM of the bond and the aftertax cost of debt is tax-adjusted. You can use a financial calculator and key in the following inputs.

note: adjust the recurring payment and time to semiannual basis.

Maturity of the bond as of today; N = 28*2 = 56

Price of the bond; PV = -( 1.07 * 1000) = -1,070

Face value of the bond ; FV = 1,000

Semi-annual payment; PMT = (4%/2)*1,000 = 20

Compute semiannual interest rate ; CPT I/Y = 1.801%

Next, convert the semiannual rate to annual rate(YTM) = 1.801% * 2 = 3.60%

Therefore, pretax cost of debt is 3.60%

Interest paid on borrowed money (debt) has tax benefits through interest tax shield. Based on this, the after tax cost of debt can be calculated. You can solve it by adjusting the pretax cost of debt to incorporate this tax benefit. The formula is as follows;

Aftertax cost of debt = Pretax cost of debt (1-tax)

Aftertax cost of debt = 0.0360(1-0.21) = 0.02844 or 2.84%

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2 years ago

Which fixed expense would be most difficult to change if money is needed for car payments? rent utilities groceries internet

nata0808 [166]

Answer:

rent is most difficult to change.

Explanation:

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2 years ago

Why irish lions rugby playing with Japan?

Arisa [49]

Answer:

I expect the answer in the following form

Explanation:

Irish lions play with Japan to get better and learn new things

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2 years ago

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,2

Svetradugi [14.3K]

Answer:

$31,100

Explanation:

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300.

Therefore the amount of stockholders’ equity as of May 31 of the current year can be derived by the formula : Capital = Assets - Liabilities

<u>Assets</u>

Cash $20,500;

Accounts Receivable, $7,250;

Supplies, $650;

Equipment, $12,000

TOTAL = 40,400

<u>Liabilities</u>

Accounts Payable, $9,300.

Therefore stockholders’ equity = 40,400 - 9,300 = $31,100

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Apple's selling iphones to customers in africa, asia, and europe is an example of the globalization of ________.

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The answer is market globalization. It is a term uniting the advertising and selling of services and goods with a progressively codependent and united global economy. It is marketing on a universal scale integrating or taking commercial advantage of global operative differences, resemblances and chances in order to meet global aims.

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