On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each of the following two years and returns its principal of P10,000 at the end of the second year. In other words, it is a standard coupon bond with a 6% annual interest rate making payments once each year. On February 1, 2021, Janet receives her first coupon payment of P600. At that time, the market interest rate bonds like hers has fallen to 4 percent. She sells her bond to Justin at that time, for a price equal to the present value of the bond's payments. How much does Justine pay Janet for the bond?

  

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Eren Retail Company was recently created with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. Sales on account to customers... Cash collected from account customers.. Cost of merchandise purchased... Cash paid for merchandise purchased.. Cost of merchandise sold.............. Cash paid for display cases... Selling and administrative expenses.. P8,000 P30,000 P12,000 P35,000 P24,500 P26,600 P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end? Eren Retail Company was recently created with a beginning cash balance of P12,000. The owner expects the following for the first month of operations: Cash sales to customers.. Sales on account to customers... Cash collected from account customers.. Cost of merchandise purchased... Cash paid for merchandise purchased.. Cost of merchandise sold.............. Cash paid for display cases... Selling and administrative expenses.. P8,000 P30,000 P12,000 P35,000 P24,500 P26,600 P9,600 P4,000 The display cases above were purchased at the beginning of the month and are being depreciated at a rate of P200 per month. This amount is included in the selling and administrative expenses figure above. All other selling and administrative expenses are paid as incurred. Eren wants to maintain a cash balance of P10,000. Any amount below this can be borrowed from a local bank as needed in increments of P1,000. All borrowings are made at month end. In Eren's cash budget for this first month, how much money will Eren need to borrow at month end?

Answer rating: 100% (QA)

Here are the steps to solve these problems 1 Janet bond sale price Janet bought a 2year bond for 100... View the full answer