On January 2, 20x5, Fresh Inc issued 20-year bonds payable with a face value of $1,000,000 and a face interest rate of 10 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable semi-annually on January 1 and July 1. In calculating the present value of the bond issue of January 2, 20x5, the periodic interest payments to be used are
A) $100,000.
B) $50,000.
C) $90,000.
D) $45,000.
B
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Which of the following statements is true regarding scenario planning?
A) This method involves extrapolating historical sales data into the future. B) It can be used only when a lot of data is available for analysis. C) This method involves creating alternative scenarios of the future. D) It is useful when many nonquantifiable factors affect outcomes in the market.
Discontinued operations are considered non-operating items
Indicate whether the statement is true or false
The beta of a portfolio ________.
A) is the sum of the betas of all assets in the portfolio B) is the product of the betas of the individual assets in the portfolio C) is the median of the range of beta of the portfolio D) is the weighted average of the betas of the individual assets in the portfolio
Lemaire Corporation is conducting a time-driven activity-based costing study in its Customer Support Department. The company has provided the following data to aid in that study: Lemaire CorporationCustomer Support DepartmentData InputsResource Data: Number of employees 17Average salary per employee$38,700Practical capacity per employee (in minutes) 90,000 Activity Data:Receiving CallsResolving IssuesSettling DisputesMinutes per unit of the activity102644 Cost Object Data:All CustomersNumber of calls received34,710Number of issues resolved16,100Number of disputes settled930 On the Capacity Analysis report in time-driven activity-based costing, the "unused capacity in number of employees" would be closest to:
A. 8.96 employees B. 17.00 employees C. (8.96) employees D. 8.04 employees