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please check the attachment . there are 10 multiple choiceproblems A 10-year, $1,000,000 zero coupon bond is priced to yield 10%. The amount the issuing
please check the attachment . there are 10 multiple choiceproblems
A 10-year, $1,000,000 zero coupon bond is priced to yield 10%. The amount the issuing company will receive when it is issued is $ 620,921 $ 1,000,000 $ 998,980 $ 783,500 $ 385,543 Claire will sell you a Bauble for $40,000. The deal is 10% down and the rest in five equal annual payments that include interest at 2%. You called the bank and they said that they would charge you 8% for a similar loan. How much are the payments if you take Claire's deal? $ 7,200.00 $ 9,496.71 $ 8,000.00 + interest $ 6,278.46 $ 7,637.70 How much are you really paying for the Bauble under Claire's deal? (Be careful!) $ 36,000.00 $ 30,495.13 $ 34,495.13 $ 7,637.22 $ 40,000.00 Assume that a company issues a ten-year $100,000, 6% bond to yield 8% for $86,579.84 on January 1, 2014 and interest payments are due on December 31st of each year. On December 31, 2014 the company paid the bondholder the annual payment of $6,000. The journal entry to record the first payment on December 31, 2014 will include a debit to interest expense of $ 6,000. a debit to interest expense of $ 8,000 a credit to bond discount $ 926.39 a debit to bond discount of $ 926.39 a credit to bond premium of $ 926.39 Wilma issued a 10-year, $100,000 face, 10% coupon rate bond to yield 10%. This bond was issued at a premium a discount par a coupon rate None of these An "operating lease" is really A temporary rental of something A better lease than a non-capital lease A purchase of the asset A current asset A purchase of a net present value Use the following information to answer the next 2 questions, You have the option of: Purchasing a car for $32,880 with 10% down and making 60 equal monthly payments including interest. The bank will charge you 8% OR Leasing the car for $600 per month for 60 months with a down payment of $1,500. You can purchase the car at the end of the lease for $3,000. If you purchase the vehicle and finance it according to the terms above, the monthly payments will be $ 666.69 $ 654.82 $ 600.02 $2,390.97 None of the above Which of the following is correct? Leasing is better by $224.69. Buying is better by $224.69. Leasing is better by $661.06. Buying is better by $661.06. None of the above When a business issues bonds for cash, which of the following occurs? A revenue account increases and an asset account increases An asset account increases and a liability account decreases An expense account increases and an asset account decreases An asset account decreases and a liability account increases An asset account increases and a liability account increases The major difference between a retail operation and a service company is The owners' equity is shown differently A service company's income statement is as of a certain date, not for a period ending C. A retail company includes interest in the operating expense section A service company has no inventory There is no differenceStep by Step Solution
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