Patey pontoons issued 8% bonds on january 1, 2018, with a face amount of $540,000, the market yield for bonds of similar risk and maturity was 11%. the bonds mature december 31, 2021 (4 years). interest is paid semiannually on june 30 and december 31.

required:

(1) determine the price of the bonds at january 1, 2018.

(2) prepare the journal entry to record their issuance by patey on january 1, 2018.

(3) prepare an amortization schedule that determines interest at the effective rate each period.

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.

Problem page a medical equipment industry manufactures x-ray machines. the unit cost c (the cost in dollars to make each x-ray machine) depends on the number of machines made. if x machines are made, then the unit cost is given by the function =cx+−0.3x2126x31,935 . how many machines must be made to minimize the unit cost?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.