the-cash-interest-payment-a-corporation-makes-to-its-bondholders-is-based-on-________-a-the-market-r

Question

The cash interest payment a corporation makes to its bondholders is based on ________.
A. the market rate times the carrying value
B. the stated rate times the principal
C. the stated rate times the carrying value
D. the market rate times the principal

Catt Huth · Accepted Answer

and this question were being asked. Look at an ad. So please take a look at your textbook and you&#x27;ll notice that the principal amount or the amount being borrowed is that 125,000. That&#x27;s where you&#x27;re seeing a dollar amount. It says $125,000 is available online. So our principle is 125,000. Our rate. The key is you want to look for percent because interest rate is a percent of the principal. And so you see that 5% there again, percent being the key, that percent sign. The last part of this question wants to know for how long, What&#x27;s the time period? And our time period is 30 years. The key, of course, being years is a measurement of time.

Puneet Prajapati · Answer

Okay, so we will understand the meaning off Lord. However we have, all of us understand the meaning off. However, people understand they&#x27;re looking expectations. So the evil I understand you two the example as usual. Okay, let&#x27;s suppose there is a bank and there&#x27;s mystery. Okay, So he takes lower off $10,000 and did a doctor in person interest and that this will be paid within one year. Please write down this example. It is a living foot arriving at a solution. So it has to be buried within veneer. It means that at the end, also at the end of an era mystery Mr A has to pay. Corbyn among has to repeat. What is that in the moment? That is $10,000 multiplied by one bless. Do not confuse with this. One can do not confuse with this question that I&#x27;ve returned in the package. That is nothing but Jeffy invested. Okay? It means Mr he has to pay 11,000 principal plus interest. Okay, this is the actual interest portion. This this portion Okay, this portion to represent in this portion and this portion, this one portion was in deep inside. So you know it. 11,000 in close. Saudi 11,000 includes principal, less interest. Okay, so let&#x27;s see. Supposed that day at the end of the at the end of Bania is coming out with the 31st December 2090. So that becomes the match. Our beauty. Okay, so the match every day is the date Soviet Republic. That much replicate is the date average principal and interest get the total amount of Lord along with the interest has to be paid for them. Linda, what if he can see Linda is usually back. So we have identified our Joyce. Okay. On that matches the choice. Be. However, you can write the whole example. I wanted to understand the solution over Joyce is the correct answer that sold for another solution. Thank you.

Catt Huth · Answer

you asked to look at an advertisement in your book, and we looked there. It says that it has a minimum deposits or principle. Is that minimum deposit? Another keys. That dollars there is 10,000. Then, when we&#x27;re looking for rate, we&#x27;re looking for that key, which is a percent sign. So you find the one that talks about the percent, or it says interest or interest rate. The percent is 1.55 and lastly, it asked for the time. I would usually looking for time in some kind of measurement in time. This one tells us that you can get a 12 month CD month being our measurement in time, so our time is 12 months, or you could say that&#x27;s one year.

Mihir Nayar · Answer

everyone. Today we&#x27;re solving problem number 38 from Chapter 17 of the text. This is a two part problem and were given the scenario. Suppose Ford Motor Company issues a five year Collins with a face value of $5000 that pays an annual coupon payments of $150. What is the interest rate that Ford is paying on the Bard funds and then, in part B Rast? Suppose the market interest rate raises from 3% to 4% a year after four issues the bones well, the value Davant increase or decrease. So let&#x27;s start for the part. Um, we&#x27;re trying to figure out what the annual interest rate is, so we&#x27;re going to use the initial value of $150 and we&#x27;re gonna end up dividing by the $5000 face value. And this is all fantasies, and that&#x27;s also going to be divided by and all the sensory multiplied by 100 because we&#x27;re looking for percentage. So that&#x27;s the formula. So I can do this actually pretty easy without a calculator. I have 150 over 5000. Divided by five is simply 1000 and then I&#x27;m gonna multiply this number by 100. On 100 is the same thing. 100 over one I can cross multiply 10 100 goes in 2000 and times so I have 150 over 10. Cancel up 09 15 over one, which is 15%. So the annual Israel is going through 15%. Fairly simple there. I&#x27;m not moving on to Part B. So basically, in part B, what happens is that the market interest rate went up 1% a year after Ford issued bonds. So will the value of on increase or decrease. It&#x27;s actually going to deep recent value, and this is going back to economics 101 Think about opportunity cost in this particular answer, which I will abbreviate like O. C. Member opportunity. Cost is if you forgo or one thing isn&#x27;t more beneficial to cut another thing versus or go. That other thing is a more beneficial than that One other thing you want your opportunity cost to be released now, and unfortunately, the opportunity costs before going. Other invest months with higher interest res will cause the body that want to be peace, so it&#x27;s because of, uh, that is that opportunity cost present. So they&#x27;re having. If you guys enjoyed my video explanation of this problem, please feel like button next to it. I hope you all have a nice day and just circle this. Thank you for watching today.

Liuxi Sun · Answer

So in this problem, we&#x27;re gonna find Organon defined key terms. For part, a simple interest is defined by the textbook as the money that has earned on the principle where the principle is original amount of money invested. So amounts invested, originally invested and for simple interest is the interest earned on the principal interest on the principal. And then for part C. We&#x27;re asked to define our third key term, which is compound interest and compound interest is difference from simple interest because you can earn compound interest on both the original principal and interest. So interest on the on principle on both the principal and the on the simple in on the interest already earned. So this is the use of differences between these three terms that will be important for this chapter.

Problem

Whirlie Inc. issued $\$300,000$ face value, 10% p…

Problem 13 Easy Difficulty

The cash interest payment a corporation makes to its bondholders is based on ________.
A. the market rate times the carrying value
B. the stated rate times the principal
C. the stated rate times the carrying value
D. the market rate times the principal

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting