Four $10 000 bonds bearing interest at 6% payable quarterly and redeemable at par on September 1,

Question:

Four $10 000 bonds bearing interest at 6% payable quarterly and redeemable at par on September 1, 2028, were purchased on January 23, 2016, to yield 5% compounded quarterly. Determine

(a) The premium or discount;

(b) The purchase price.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Business Mathematics With Canadian Applications

ISBN: 9780135285015

12th Edition

Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday

See More Books

Question Posted: Oct 27, 2020 07:09 AM

Where is the premium or discount on bonds payable presented on the balance sheet?
Four $5000 8.5% bonds with interest payable semi-annually, redeemable at par were bought 20 years before maturity to yield 7.5% compounded semi-annually. The bonds were sold 3 years later at 103.625....
A $5000 000 issue of 10-year bonds redeemable at par offers 7.25% coupons payable semi-annually. What is the issue price of the bonds to yield 8.4% compounded monthly?
Mr. Lawrence had been the manager at Pleasure Sdn Bhd (PSB) since 1 February 2016. His employment was terminated on 30 April 2021 due to disputes with the directors of PSB. After many appeals,...
How are marginal cost of pollution, marginal cost of pollution abatement, and optimum amount of pollution related?
Explain the role of the Donoghue v Stevenson and Anns cases in determining duty of care.
Priming is required in a (a) gear pump (b) screw pump (c) reciprocating pump (d) centrifugal pump
The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $45,000 cash from the issue of common stock. Feb. 1 Paid rent for office...
Conduct your own research and find an article/video/website about a drone application that is new (appears to have been developed within the last year). Briefly describe the application and how...
You have just completed a grueling 10-day business trip calling on two dozen accounts up and down the West Coast. There were even business meetings combined with social events late into the night and...
Three $10 000, 10.5% bonds with quarterly coupons redeemable at par on August 1, 2025, were bought on May 1, 2011, to yield 12% compounded quarterly. The bonds were sold on January 16, 2019, at 93.5.
A $1000 bond bearing interest at 8% payable semi-annually redeemable at par on February 1, 2024, was purchased on October 12, 2017, to yield 7% compounded semi-annually. Determine the purchase price.
The Super Bowl is the final championship game in the National Football League in the US and is one of the most watched television events of the year. In January 2016, just before Super Bowl 50, a...
Consider a version of Solow's Model: Y = AKL-a SY K+1 K++8Kt Lt = Lo(1+n)t 1 a) Rewrite the production function and the equation of capital accummulation using variables normalized by the units of...
The Polaris Company uses a job-order costing system. The following transactions occurred in October: a. Raw materials purchased on account, $210,000. b. Raw materials used in production, $190,000...
Assume the random variable X is normally distributed, with mean = 54 and standard deviation = 8. Find the 7th percentile. The 7th percentile is (Round to two decimal places as needed.)
Following are the transactions of a new company called Pose-for-Pics. August 1 M. Harris, the owner, invested $10,500 cash and $45,150 of photography equipment in the company in exchange for common...
9. If f(x)=In x, then lim f(x)-(3) is 813 413
Use the following financial information for Samsung (Samsung.com). Net income less dividends available to preferred shares (in millions) . . . . . . . . . . . W 16,317,275 Cash dividends declared for...
A consultant is beginning work on three projects. The expected profits from these projects are $50,000, $72,000, and $40,000. The associated standard deviations are $10,000, $12,000, and $9,000....
Henry performed a two-tailed test for an experiment in which N = 24. He could not find his table of t critical values, but he remembered the t cv at df = 13. He decided to compare his t obt with this...
A researcher hypothesizes that people who listen to music via headphones have greater hearing loss and will thus score lower on a hearing test than those in the general population. On a standard...
A researcher hypothesizes that individuals who listen to classical music will score differently from the general population on a test of spatial ability. On a standardized test of spatial ability, =...
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to...
The following information pertains to the inventory of Parvin Company: Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 400 units @ 2,400 units @ 1,100 units $17 $22 $23 During the year,...
Gold Nest Company of Guandong, China, makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their...

Four $10 000 bonds bearing interest at 6% payable quarterly and redeemable at par on September 1,

Question:

Step by Step Answer:

Contemporary Business Mathematics With Canadian Applications

Students also viewed these Mathematics questions