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Hunter-Best [27]
2 years ago
12

Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market

rate of interest on the date of issue was 8%. Assuming effective interest method of amortization, calculate the bond interest expense on the first interest payment date. Select one: A. $117,618 B. $ 58,809 C. $129,774 D. $ 48,000
Business
1 answer:
Soloha48 [4]2 years ago
6 0

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Bond carrying value = $1,470,226

Rate of interest = 8%

Rate of interest (Semiannual ) = 4%

So, we can calculate the the bond interest expense on the first interest payment by using following formula:

The bond interest expense = Bond carrying value × rate of interest (semiannual)

By putting the value we get

= $1,470,226 × 4%

= $58,809

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September 19, 2020 because that is when the cake successfully delivered
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A U.S. firm holds an asset in Great Britain and faces the following scenario:
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Answer:

C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

Explanation:

given data

                     State 1           State 2               State 3

Probability      25%            50%                      25%

Spot rate      $ 2.50 /£    $ 2.00 /£            $ 1.60 /£

P*                   £ 1,800       £ 2,250             £ 2,812.50

P                     $4,500          $4,500               $4,500

solution

company holds portfolio in pound. so to get hedge, they will sell that of the same amount.

we get here average value of the portfolio that is

The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)

The average value of the portfolio = 2278.13

so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.

3 0
2 years ago
List and describe the three communities of interest that engage in an organization’s efforts to solve InfoSec problems. Give two
USPshnik [31]

Answer:

<u>List Of Communities Interest that engage in an organization's effort.</u>

1) Information Security Community

2) Information Technology Community

3) General Business Community

Explanation:

1)<u> Information Security Community</u><u>:</u> This community protects the organization information assets from many threats they face. Example: This community comprises of the IT Professionals, Chief information security officer, and managers who bear the responsibility to secure the information.

2)<u> Information Technology Community</u><u>:</u> This community supports the business objectives of the organization by supplying and supporting IT that is appropriate to the organization needs. Examples: IT Professionals, Chief information officer, and managers who acts as providers of information technologies.

3)<u> General Business Community</u><u>:</u> This community articulates and communicates organizational policy and objectives and allocates resources to the other group. This community includes: Non-IT Professionals, Users and Managers.

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The success of unrelated diversification is contingent upon management's ability to A. E) identify potential new acquisition can
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Answer:

A. identify potential new acquisition candidates that are cash cows (as opposed to cash hogs).

Explanation:

The success of unrelated diversification is contingent upon management's ability to identify potential new acquisition candidates that are cash cows (as opposed to cash hogs).

A cash cow business produces large internal cash flows over and above what is needed to build and maintain the business whereas the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements.

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