💬 👋 We’re always here. Join our Discord to connect with other students 24/7, any time, night or day.Join Here!

Stuck on your homework problem? This step-by-step video should help.

Try Numerade Free for 30 Days

Like

Report

On October 1 a company sells a 3-year, $\$2,500,000$ bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________.A. $\$ 200,000$B. $\$ 558,438$C. $\$ 2,233,750$D. $\$ 6,701,250$

No Related Courses

Chapter 13

Long-Term Liabilities

Section 1

Explain the Pricing of Long-Term Liabilities

The Real Economy in the Long Run

03:16

A total of $ \$24,000 $ …

03:40

For the following exercise…

04:03

A company is expected to e…

00:53

A bond with a face value o…

08:44

Your bank account pays an …

04:58

The trustee of a union…

03:10

An investor will invest a …

02:39

You invested $\$ 11.000$ i…

06:06

A retired couple have up t…

02:31

Involve zero-coupon bonds.…

Okay, so, uh, this is a kind of a finance problem. Just tells us we're gonna invest into two accounts. $24,000. So our first equation just gonna be X plus y just both accounts. He goes 24,000. It tells us the first account pays 5% our 0.35% interest. So 0.35% not percent 3.5% interest, which comes out to be the decimal 0.35 And our second account pays 5% interest. Next on my represents, how much money we're investing in each one of those accounts. So that's going to identify that. So X is the 3.5% account and why is the 5% count? Okay, So and the total amount of interest we want to make for some reason, is less than the maximum you could make is the maximum would be if you invested all of it in the UAE accounts. I don't know why you want to split it up and make less, but there you have. It s o. The total amount of interest we want to make is 9 30 I'm gonna multiply top equation by 0.5 on them to help us, I work our way down to the answers we're looking to solve for the account balance in the ex account. So I most about 0.5 because that's gonna help us eliminate the Y values so we can just go ahead and solve for the ex account. So by multiple, about 0.5 I'll have 0.5 x and 0.35 x. My wife values will cancel, and I'm gonna have 0.5 times 24,000 which is 1200. Uh, bottom still gonna be 9 30 Cannot wine values of just cancel. So we're gonna have 0.15 x equals. And when we subtract this, 1200 minus 9 30 is gonna be 270. If I divide both sides by 0.15 I'll have the axe is $18,000. So that's how much we want to invest in that 3.5% account. Uh, if he wanted to extend this problem further, the Y value would just be 24,000 minus that which is just 6000. So I think the question Just ask for the X value. Um, so just make sure you know when you're solving these problems, you know exactly what is asking for. Thank you very much.

View More Answers From This Book

Find Another Textbook

A total of $ \$24,000 $ is invested in two corporate bonds that pay …

For the following exercises, use a system of linear equations with two varia…

A company is expected to earn $\$ 50,000$ a year, at a continuous rate, for …

A bond with a face value of $\$ 10,000$ in 10 years can be purchased now for…

Your bank account pays an interest rate of 8 percent. You are considering bu…

The trustee of a union's pension fund has invested the funds in three w…

An investor will invest a total of 15,000 dollar in two accounts, one paying…

You invested $\$ 11.000$ in stocks and bonds, paying $5 \%$ and $8 \%$ annua…

A retired couple have up to $\$50,000$ to place in fixed-income securities. …

Involve zero-coupon bonds. A zero-coupon bond is a bond that is sold now at …

11:22

What is the impact on the accounting equation when a payment of account paya…

03:37

Which statement is most directly affected by a change to net income?A. b…

06:09

Which of the following financial statements should be prepared first?A. …

04:47

If a customer pays with a credit card and the service has been provided, whi…

05:04

South Rims has an accounts receivable balance at the end of 2018 of $\$ 357,…

03:03

The three heading lines of financial statements typically include which of t…

08:33

On which financial statement would the merchandise inventory account appear?…

09:10

Which of the following accounts will normally have a debit balance?A. Co…

06:35

When inventory items are highly specialized, the best inventory costing meth…

07:15

Which of the following decreases owner’s equity?A. investments by owners…

92% of Numerade students report better grades.

Try Numerade Free for 30 Days. You can cancel at any time.

Annual

0.00/mo 0.00/mo

Billed annually at 0.00/yr after free trial

Monthly

0.00/mo

Billed monthly at 0.00/mo after free trial

Earn better grades with our study tools:

Textbooks

Video lessons matched directly to the problems in your textbooks.

Ask a Question

Can't find a question? Ask our 30,000+ educators for help.

Courses

Watch full-length courses, covering key principles and concepts.

AI Tutor

Receive weekly guidance from the world’s first A.I. Tutor, Ace.

30 day free trial, then pay 0.00/month

30 day free trial, then pay 0.00/year

You can cancel anytime

OR PAY WITH

Your subscription has started!

The number 2 is also the smallest & first prime number (since every other even number is divisible by two).

If you write pi (to the first two decimal places of 3.14) backwards, in big, block letters it actually reads "PIE".

Receive weekly guidance from the world's first A.I. Tutor, Ace.

Mount Everest weighs an estimated 357 trillion pounds

Snapshot a problem with the Numerade app, and we'll give you the video solution.

A cheetah can run up to 76 miles per hour, and can go from 0 to 60 miles per hour in less than three seconds.

Back in a jiffy? You'd better be fast! A "jiffy" is an actual length of time, equal to about 1/100th of a second.