Question

You are considering purchasing a bond. The bond will pay you $100 at the end of each year for 20 years. At the end of the 20th year, the bond will also pay you back its $1,000 face value. Assuming a 4% discount rate, how much is this bond worth today? Round to the nearest dollar.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Final Accounts for Companies

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: 1. Homework Chapter 10

A: Dividends:This is the amount of cash distributed to stockholders by a company out its earnings, acco...

Q: Boss Enterprises currently sells its products for $30 per unit. Management is contemplating a 40% in...

A: Break-Even Point (in units):It’s defined as the point where sales and expenses are the same or when ...

Q: Scott Incorporated has been in business for several months. Because of increased competition in the ...

A: Break-Even Point: A break-even point is a production level of a company where their revenue equals t...

Q: How do you find the trade discount and net price of an item if the list price is $199, the chain dis...

A: Calculate the trade discount.

Q: Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed...

A: IRS Publication 502 states about medical and insurance deductions. It lists down what expenses can b...

Q: My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 17 -- State...

A: Statement of Cash flow of Ms. Mc.Kenzie for the year ending December 31, 20X4:

Q: E 20-9 Preparation of fund balance sheet A general ledger trial balance at June 30, 2013, for Millar...

A: The fund statements are prepared by government entities which reports the funds available with the g...

Q: Payroll Journal Entry 1.  Journalize the following data taken from the payroll register of CopyMaste...

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. Th...

Q: Break-even sales and sales to realize operating income For the current year ended March 31, Cosgrove...

A: Hence, 20,300 units is the breakeven sales  which is calculated by dividing total fixed costs with t...

Q: Your company manufactures bikes that sell for $10,000. Unit variable costs are $6,000 and totalmonth...

A: Since, target income is never less than fixed cost. We assume that company is earning their target i...

Q: 7. Homework Chapter 10

A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder befo...

Q: Calculation and Journal Entry for Employer Payroll Taxes 1.  Calculate the employer's payroll taxes ...

A: Click to see the answer

Q: Fixed costs are $2400000 and the unit contribution margin is $300. What is the break even point? O $...

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a loss...

Q: Sean Matthews is a waiter at the Duluxe Lounge. In his first weekly pay in March, he earned $300.00 ...

A: In this question,  federal income tax year didn't mentioned. I am assuming for the year 2019.Note: I...

Q: Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales: ...

A: Cost of goods sold for 120 units is $1320 which is obtained by multiplying 120 units with the unit c...

Q: Practice 2: Pet Park International sells cat food and dog food. Its monthly fixed costs average $620...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Braganza Enterprise uses a perpetual inventory system and has a highly labour intensive production p...

A: As the student has posted multiple questions and not mentioned which question to be answered, the so...

Q: Question12 -/1 View Policies Current Attempt in Progress Randel Manufacturing has five activity cost...

A: Computation of Overhead Rate

Q: alice is a planning to attend several professional events and will purchase a suit costing between $...

A: Ethical dilemma: Ethical dilemma refers to the problem that lies in the process of decision making b...

Q: Cost per Equivalent Unit The cost of direct materials transferred into the Filling Department of Eve...

A: In order to determine the material cost per equivalent units, the direct material cost is divided by...

Q: The managerial accountant at Organic Beverage Factory used spreadsheet software to run a regression ...

A: Cost incurred to produce and sell a product consist of 2 components, variable cost, and fixed cost.V...

Q: Q9

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...

Q: Lower of Cost or Market Garcia Company's inventory at the end of the year was recorded in its accoun...

A: Lower of Cost or market (LCM):The lower of cost or market rule states that a business must record th...

Q: Exercise 7-03 Listed below are five procedures followed by Eikenberry Company.Indicate whether eac...

A:  Accounting principle: These are the guidelines which are to be applied while preparing the accounti...

Q: During the current year, Witz Electric, Inc., recorded credit sales of $800,000. Based on prior expe...

A: Bad debt expenses are charged to Income statement on the basis of expected percentage at the end of ...

Q: Yolanda is a cash basis taxpayer with the following transactions during the year: Cash receiv...

A: Business income:The income that is realized from the result of business activity is referred to as t...

Q: Your answer is partially correct.  Try again.     Concord Company reports the following financi...

A: a.) 5% of accounts receivable-amount of bad debt expense would be=$ 153,000*5%= $ 7,650.Allowance fo...

Q: Describe two ways in which the concept of materiality may save accountants' time and effort in makin...

A: Materiality concept: The accounting concept which focusses that all the financial items and figures ...

Q: Inventory information for Part 311 of Concord Corp. discloses the following information for the mont...

A: Calculate cost of goods sold and ending inventory under (1) LIFO and (2) FIFO, assuming periodic inv...

Q: Joint Operation for 2018 Debit: Nov. 6 Mercandise-Peter ₱8,500                    8 Mercandise-Neil ...

A: Hence gain is ₱ 5,970 which is calculated by deducting income from expenses.

Q: Carmelita Inc., has the following information available:   Costs from Beginning Inventory Costs f...

A: 1. Calculation of equivalent units:Results of the formulas used in the Excel table are as follows: T...

Q: The following production data were taken from the records of the Finishing Department for June: I...

A: Equivalent Unit of Production:An Equivalent unit of production is an expression of the amount of wor...

Q: How do you find the cash discount and the net amount paid when you know the gross amount of invoice ...

A: Cash discount is a rebate permitted by certain vendors of merchandise or by certain service provider...

Q: Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepare...

A: Aging table that is given  above specifies the percentage of uncollectible of accounts receivable. M...

Q: E 20-10 Preparation of a fund statement of revenues, expenditures, and changes in fund balance The t...

A: Required closing entries are as follows:

Q: conduct horizontal and vertical analyses for the balance sheet and income statement accounts and rep...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the aver...

A: Cost incurred to produce and sell a product consist of 2 components, variable cost, and fixed cost.V...

Q: how would i find the total cash reciepts for this problem

A: Determine sales revenue for each month.

Q: Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commis...

A: Income StatementIncome Statement or profit & loss account is one of the financial statements of ...

Q: How do you find the amount of payment to be credited and the balance outstanding when you know the a...

A: GivenInvoice Value = $600Invoice Date = 7/5Conditions for Payment = 4/10 and n/60This condition mean...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 10 -- INVE...

A: Effect of errors on cost of goods sold (COGS) and net income:

Q: Solutions to A and B are needed.

A: Attached the cash flow with indirect method

Q: Accounting Question

A: Inventory for Caleres if it would have used FIFO in 2015 = $546,745 + $4,094= $550,839.Inventory for...

Q: Q7

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from ...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROP...

A: 1. Calulate first year depreciation under straight line method.

Q: Your company opens and starts production this year and has variable costs per unit of $5,674 and sel...

A: Hence, under variable costing the amount of inventory reported is higher as compared to the amount o...

Q: Question 5 The following year-end unadjusted trial balance is for Jaya as at 31 December 2018. J...

A: Financial statements: Financial statements refer to those statements, which are prepared by the Comp...

Q: I'm not sure if I'm doing question 3 right since my friend has a different answer. Can you please ex...

A: A Stock Dividend is the payment of dividends in theforms of shares of the company. In cash crunch si...

Q: Barry Company sells a patent for $25,000. The patent had an acquisition cost of $120,000 and accumul...

A: Accumulated Amortization:Accumulated amortization is the total sum of amortization expense recorded ...

Q: Accounting Question

A: When notes receivable are assets of the business and hence they are debited when received nd creadit...