Kinsley Valencia

Business

23 August, 02:19

If $500,000 of 10-year bonds with interest payable semiannually are sold for $494,040 based

on (1) the present value of $500,000 due in 20 periods at 5% plus (2) the present value of

twenty $25,000 payments at 5%, the nominal or contract rate and the market rate of interest

for the bonds are both 10%.

True

False

+1

Answers (1)

Know the Answer?

Not Sure About the Answer?

Find an answer to your question 👍 “If $500,000 of 10-year bonds with interest payable semiannually are sold for $494,040 based on (1) the present value of $500,000 due in 20 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.

Search for Other Answers

You Might be Interested in

Increasing taxes would be appropriate to A-slow the inflation rate B-speed up the inflation rate C-create deflation D-create stagflaction

Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. In each space below, place the correct sign; less than (), or equal (=) for each comparison, assuming periods of rising prices. 1.

When Wisconsin Corporation was formed on January 1, the corporate charter provided for 100,000 share of $10 par value common stock.

Define cash flow ...

Which types of costs are associated with transactions that can result in damage to the environment, human health, and property?

New Questions in Business

Candace just purchased a certificate of deposit at her local bank with a stated rate of 5.3%. Candace has had BA3500 so she knows that the real rate the CD is paying is 3.1%.

Symon's Suppers Co. has announced that it will pay a dividend of $4.39 per share one year from today. Additionally, the company expects to increase its dividend by 4.2 percent annually. The required return on the company's stock is 11.4 percent.

If soybean farmers know that the demand for soybeans is inelastic, in order to increase their total revenues they should a. use more fertilizers and weed killers to increase their yields. b. plant additional acres to increase their output. c.

Baker's Financial Planners purchased seven new computers for $970 each. It received a 20% discount because it purchased more than six and an additional 7% discount because it took immediate delivery. Terms of payment were 3/10, n/30.

A company has beginning inventory of 300 units at $ 17.73 each; They purchased 400 units at $ 7.11 each on June 2; On June 15, they also purchased 200 units at $ 13.16 each.