DeKay Dental Supplies issued $10,000 of bonds on January 1, 2018. The bonds pay interest semiannually. This is a partial bond amortization schedule for the bonds Effective Decrease in Outstanding Payment Cash interest balance 400 400 400 400 409 409 409 410 balance 9,080 9,089 9,098 9,107 9,117 10 What is the stated annual rate of interest on the bonds? a) 4.5%.
b) 9.0%.
c) 40%.
d) 80%.

d. 8.0%

Explanation:

The Stated Annual Rate of Interest on a bond refers to the coupon rate which is the amount that the company promises to pay on the bond pay period.

Looking at the question, the company is paying $400 every 6 months on the $10,000 bonds . The interest therefore is;

= 400/10,000

= 4%

Company pays 4% on the bonds every 6 months.

This 4% should be stated in annual terms so;

= 4% * 2

= 8%.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi