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adoni [48]
2 years ago
5

Akers Company sold bonds on July 1, 20X1, with a face value of $100,000. These bonds are due in 10 years. The stated annual inte

rest rate is 6% per year, payable semiannually on June 30 and December 31. These bonds were sold to yield 8%. Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided. Round your final answers to the nearest whole dollar amount. Do not round intermediate calculations.) Required: How much did these bonds sell for on July 1, 20X1?
Business
1 answer:
taurus [48]2 years ago
8 0

Answer:

Bond Price = $86409.67366 rounded off to $86409.67

Explanation:

To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,

Coupon Payment (C) = 100000 * 0.06 * 6/12  = $3000

Total periods (n) = 10 * 2 = 20  

r or YTM = 0.08 * 6/12 = 0.04 or 4%

The formula to calculate the price of the bonds today is attached.

Bond Price = 3000 * [( 1 - (1+0.04)^-20) / 0.04]  + 100000 / (1+0.04)^20

Bond Price = $86409.67366 rounded off to $86409.67

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Answer:

The answer is $250

Explanation:

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6 0
2 years ago
Project ____ management involves generating, collecting, disseminating, and storing project information. 1. communications 2. me
Sedbober [7]

Answer:

The correct answer is 1. communications.

Explanation:

Project Communications Management includes the processes required to ensure that the generation, collection, distribution, storage, retrieval, and final disposal of project information are adequate and timely. Project managers spend most of their time communicating with team members and others interested in the project, whether they are internal (at all levels of the organization) or external to it. Effective communication creates a bridge between the different stakeholders involved in a project, connecting different cultural and organizational environments, different levels of experience, and diverse perspectives and interests in the implementation or outcome of the project.

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2 years ago
Handel Company uses the allowance method for estimating uncollectible accounts.
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Answer:

Entries are given below

Explanation:

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Receivable - Terry                            $2,000

Sales Revenue                                                     $2,000

April 15 - Received $600 from terry

                                                                DEBIT      CREDIT

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Receivable - Terry                                                      $600

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                                                                    DEBIT      CREDIT

Allowance for debt (2000-400)                $1,400

Receivable - Terry                                                           $1,400

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                                                                DEBIT      CREDIT

Receivable - Terry                                   $300

Allowance for doubtful debt                                     $300

8 0
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