Accounting assistance?
I can not figure this out, I keep hold of coming up with answers that are not even my choices, please give a handWhen the market rate of interest be 11%, Waverly Corporation issued $1,000,000, 12%, 8-year bonds that pay interest semiannually. The selling price of this bond issue be
A. $1,052,310
B. $1,154,387
C. $1,000,000
D. $720,495
Answers: The bond price is worked out as follows:
$1,000,000(pv1,5.5%,16) +
12%(1/2) x ($1,000,000)(pva,5.5%,16)
Using the PV and PVA tables contained by the links, this works out to
$1,000,000(0.42458) + 12%(1/2)($1,000,000)(10.46216)
=424,580 + 627,730
=$1,052,310
Note: 5.5% is half the souk rate of 11%
16 because the bond term is 8 yrs next to semiannual interest periods
I reckon the answer is $1,078,585.28
The price of the bond is the present value of its adjectives earnings.
Thus the expected amount contained by future is 1,000,000*((1+(0.12/2)))^(8*2) = $2,540,351.68
The present merit at 11% will be:
2,540,351.68*((1+(0.11))^8) = $1,102,325.906 assuming annual interests applied
else it will be
2,540,351.68*((1+(0.11/2))^16) = $1,078,585.28 assuming semi-annual interests applied
If we assume that the market expects interest rates to plunge then the present utility will be bit more due to market expectations and sentiments.
So I chew over answer "B" can be the correct answer.
I hope I am right!
UK wholesale, apparently it is a UK wholesale directory, but does it in actuality exist or is it of late a website,?
I am looking for reputable wholesalers (they seem as deset mirrages hear) anyone know any JENURIN ones please?Answers: Hi, a few sites that my wife and i use from time to time
I wanna know flea market share of citibank?
how do i know?which site can tell me that?
i m contained by singapore,,so,,i need marketplace share of citibank in singapore,,so singapore market of course.
the bazaar share should be of the current year.
there's a product launched, call "visa platinum card", and my project is on that,,,so i ought to know the market share previously the product was launch, and after the product was launch,,!!
This is very earth-shattering,,i beg u,,pls
this is
Answers: Have you tried Hoovers