Answer:
$23,709
Explanation:
Data provided in the question:
Amount of bond issued = $700,000
Duration = 5 years
Interest rate = 8%
Selling amount of bond = $728,700
Market rate of interest = 7%
Now,
Interest paid = Amount of bond issued × Interest rate
= $700,000 × 0.08
= $56,000
Interest expense = Amount of bond sold × Market Interest rate
= $728,700 × 0.07
= $51,009
unamortized premium = Selling amount of bond - Amount of bond issued
= $728,700 - $700,000
= $28,700
Amortized amount = Interest paid - Interest expense
= $56,000 - $50,009
= $4,991
Balance of the premiums on bonds payable account immediately following the first interest payment
= unamortized premium - Amortized amount
= $28,700 - $4,991
= $23,709
Answer:
option (d) $929.42
Explanation:
Data provided in the question:
Coupon bonds payments = 5.65% semiannual
Yield to maturity, r = 6.94% = 0.0694
Face value = $1000
Now,
Coupon bond payments = 
× $1,000
= $28.25
market price per bond = Payment × 
+ 
Here,
n is the maturity period and 2n is due to the semiannual payments
Thus,
market price per bond = $28.25 × 
+ 
= $28.25 × 10.942 + 620.3
= $929.42
Hence,
The answer is option (d) $929.42
Answer:
Option (B) is correct.
Explanation:
Unit of account:
There are some functions of money or we can say that characterstics of money:
(a) Medium of exchange
(b) Store of value
(c) Unit of account
(d) Standard of deferred payments
Sea shells are precious items but one cannot properly split divide those sea shells into small denominations like money does. Money is easily storable, people use as a medium of exchange and unit of account.
By unit of account we mean that we can easily measure the value of goods and service and many things in monetary terms but we cannot measure in terms of sea shells.
That's why sea shells unfit to act as money today.
Answer: C. a repayment plan.
Energy should file a petition in bankruptcy for relief through a repayment plan.
Explanation: Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
A repayment plan is a way to pay back a loan over an extended period of time, generally by making fixed monthly payments. Repayment plans operate differently depending on the loan type.
