Business, 10.03.2020 02:34 2020seogang

The semiannual, 8-year bonds of Alto Music are selling at par and have an effective annual rate of 8.6285 percent. What is the amount of each interest payment if the face value of the bonds is $1,000? (Choose the nearest value)

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Answer from: Deascry

Explanation:

as per the IFRS-9 effective rate is charged on the carrying value the investment. assuming that the interest and bond value will b paid on redemption date. we will prepare the the amortization schedule as follows

Semi annully Schedule

Year Amount Interest 8.625%/2 Closing Amount

6months 1,000.00 43.12 1,043.12

6months 1,043.12 44.98 1,088.10

6months 1,088.10 46.92 1,135.03

6months 1,135.03 48.95 1,183.97

6months 1,183.97 51.06 1,235.03

6months 1,235.03 53.26 1,288.28

6months 1,288.28 55.55 1,343.84

6months 1,343.84 57.95 1,401.79

6months 1,401.79 60.45 1,462.24

6months 1,462.24 63.06 1,525.29

6months 1,525.29 65.77 1,591.07

6months 1,591.07 68.61 1,659.68

6months 1,659.68 71.57 1,731.25

6months 1,731.25 74.66 1,805.90

6months 1,805.90 77.88 1,883.78

6months 1,883.78 81.23 1,965.01

what if the interest is paid on after every six months then calculation of interest will b as follows

Year Amount Interest RepayClosing Amount

8.625%/2

6months 1,000.00 43.12 43.12 1,000.00

Answer from: Quest

dual credit courses allow you to take a test at the end of the course that, if you pass it with a high enough score, will give you college credit.

Answer from: Quest

answer; functional fixedness;

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The semiannual, 8-year bonds of Alto Music are selling at par and have an effective annual rate of 8...