The Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
Data and Calculations:
Date Cash Interest Effective Interest Decrease Outstanding
in balance balance
1/1/2018 $207,020
6/30/2018 $7,000 $6,211 $789 206,230
12/31/2018 $7,000 6,187 813 205,417
6/30/2019 $7,000 6,163 837 204,580
12/31/2019 $7,000 6,137 863 203,717
6/30/2020 $7,000 6,112 888 202,829
12/31/2020 $7,000 6,085 915 201,913
6/30/2021 $7,000 6,057 943 200,971
12/31/2021 $7,000 6,027 971 200,000
Total cash interest per year = $14,000 ($7,000 + $7,000)
Annual stated interest rate = 7% ($14,000/$200,000 x 100)
This annual interest rate can also be worked out as 7% ($7,000/$200,000 x 100 x 2), while the effective interest rate is 6% ($6,027/$200,000 x 100).
Thus, Lopez Plastics Co. issued the callable bonds at the annual stated interest rate of 7%.
Learn more: ehttps://brainly.com/question/25654055
Which of the following choices represents two consumers?
A grass and grasshopper
B.rabbit and dog
C. mushroom and frog
D.turtle and flower
I need help ASAP
Answer:
Option B
Hope it helps..
The choice that represents two types of customers is B.rabbit and dog.
What kind of customers are rabbits and dogs?Rabbits are a type of customer that will not pay very much for the goods they buy. They prefer cheap things.
Dogs on the other hand, are easier to negotiate with to make profits because they usually accept a price as it is.
Find out more on types of customers at https://brainly.com/question/24803497.
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Ann lives in Princeton, New Jersey, and commutes by train each day to her job in New York City (20 round trips per month). When the price of a round trip goes up from $10 to $20, she responds by consuming exactly the same number of trips as before, while spending $200 per month less on restaurant meals. Does the fact that her quantity of train travel is completely unresponsive to the price increase imply that Ann is not a rational consumer
Answer:
Yes
Explanation: