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FrozenT
1 month ago
12

As a discipline, Governance is most closely related to:

Business
You might be interested in
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was appro
Scilla [3833]

Answer:

The selling price of the bond is $6,154

Explanation:

Given data

face value = $5,000

interest = 8% of face value

rate = 6.5%

To determine

the bond's selling price

solution

we will calculate the interest associated with

interest = 8% of face value

interest = 8% × 5,000

interest = 400

Let’s assume the bond’s selling price is x

where

the bond selling equation will be

interest = rate × bond selling price

400 = 0.065 × x

x = 6,154

Thus, the bond’s selling price is $6,154

8 0
3 months ago
When the effective interest rate method of amortization is used, the amount of interest expense for a given period is calculated
marusya05 [3725]

Answer: The assertion in the question is false.

Explanation: In calculating interest expenses using the effective interest rate method of amortization, the market interest rate is applied, multiplied by the bond value at the start of the respective period. The question incorrectly states that the face value is considered, which is inaccurate.

Thus, the claim in the question is false.

8 0
4 months ago
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