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Business, 14.02.2020 00:58 quinoarana1
A homeowner has a ten‑year home-improvement loan for $36,875. What are the annual payments required by the loan if the annual rate of interest is 4 percent
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Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.
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A homeowner has a ten‑year home-improvement loan for $36,875. What are the annual payments required...
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