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vodka [1.7K]
2 years ago
12

On January 1, 2009, AML company issues bonds maturing in 5 years. The par value of the bonds is $10,000, the annual coupon rate

is 4-percent, and the compounding period is semiannually. The market initially prices these bonds using annual market interest rate 6-percent. The market interest rate on June 30, 2010 was 5% and the market interest rate on Dec. 31, 2012 was 8%.1. Were the bonds issued at par, a discount or a premium?2. Calculate the issue price.3. Record journal entry on the date of issuance.4. Will the interest expense increase or decrease over the years?5. Calculate the interest expense on Jun 30, 2010.6. Record journal entry on the interest expense on Jun 30, 2010.

Business
1 answer:
klasskru [66]2 years ago
8 0

Answer:

Explanation:

Solution is attached below

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Davidson offers several solutions to the major issues, stating that fiscally we are actually not a nation that is divided on the
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QUESTION 1.
Some of the fiscal solutions that Davidson mentions tweaking in a bid to cut government spending multiple subtle ways <span>are as follows:
I. R</span>aise social security retirement age
II. Reduce medicare for wealthy seniors
III. Raise medical <span>healthcare contributions


</span>QUESTION 2.
According to Davidson, the republican and the democrat philosophies are two fundamentally different economic philosophies that impact the debt crisis faced by the United States. In his opinion, the republicans want a system in which the government’s only job should be to create an efficient society, whereas the Democrats aim at making sure that everyone lives in an “equitable, fair society”. I think I would agree more with the Democrat philosophy because equity and fairness to everyone is<span> a key public value outcome in every society.


</span>
QUESTION 3.
<span>The two fiscal issues that are hyper-partisan are as follows:
I. </span>Military defense spending.
II. I<span>ssues of taxes
</span>- The parties are so divided chiefly because they have extreme opposites points of view on several issues.
- On the issues, I lean towards the Democrat view. 


QUESTION 4.
Towards the end of his talk, Davidson says he fears that the longer we delay any solution, the more the world will look to the U.S. not as the bedrock of stability in the global economy, but as a place that can't resolve its own fights. He explains that the higher interest rates are going to be, the quicker we're going to have to face a day of horrible calamity.
4 0
2 years ago
Wilson is offered a job in Kansas City that pays $50,000 and a job in Dallas that pays $60,000. Which pair of CPIs would ensure
Svetradugi [14.3K]

Answer:

option C is correct CPI in Kansas City is 125 and in Dallas is 150.

Explanation:

given data

Kansas City pays = $50,000

Dallas that pays = $60,000

solution

we know that CPI base year is always  = 100

first we get here real salary value in Kansas City that is express as

Real Value = Salary in Kansas City × (CPI base year ÷ CPI current year) ..........1

put her value we get

Real Value = $50,000 × \frac{100}{125}

Real Value =  $40000

and now we get here real salary value in Dallas that is express as

Real Value = Salary in Dallas City × (CPI base year ÷ CPI current year) ..........2

put her value we get

Real Value = $60,000 × \frac{100}{150}

Real Value =  $40000

so now we can see that both value is same in both city with CPI Kansas City = 125 and CPI Dallas = 150

so here correct option is c. 125 in Kansas City and 150 in Dallas  

4 0
2 years ago
The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their
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The ability of an organization to produce services that, by utilizing the consumer's five senses, have some uniqueness in their characteristics is experience differentiation.

Explanation:

Experience-based differentiation (EBD) which we describe as: a continuously loyalty-building systematic response to customer interaction. Don't linger on the word too much.

Organisations must pursue a multi-year path to achieve with EBD. This is why organisations will make this is one of every top business initiatives. In the financial sector, education and travel sectors we foresee EBD to make rapid progress.

WACOAL DIA, a luxury brand of WACOAL, is an example of marketing by which expertise in the procurement process has been improved.

5 0
2 years ago
Sweet Treats common stock is currently priced as $36.72 a share. The company just paid $2.18 per share as its annual dividend. T
Agata [3.3K]

Answer:

8.27%

Explanation:

Data provided in the question:

Current price = $36.72

Annual dividend paid, D0 = $2.18

Dividend growth rate, g = 2.2% = 0.022

Now,

Cost of Equity = [ (Dividend For Next Year) ÷ Current Price ] + Growth rate

= [ ( D0 × ( 1 + g  ) ) ÷ $36.72 ] + 0.022

= [ ( $2.18 × ( 1 + 0.022  ) ) ÷ $36.72 ] + 0.022

= [ 2.22796  ÷ $36.72 ] + 0.022

= 0.06067 + 0.022

= 0.08267

or

= 0.08267 × 100% = 8.267% ≈ 8.27%

6 0
2 years ago
The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression
Ray Of Light [21]

Answer:

During the Great Depression many businesses failed.  The default risk for the corporate  bond increased compared to the default-free Treasury bond.  The demand for corporate bonds decreased while the demand for Treasury bonds increased resulting in a larger risk  premium.

Explanation:

5 0
2 years ago
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