Author Question: Tangshan Coal Inc just issued a 10 percent, 25-year bond with a 1,000 par value that pays interest ... (Read 34 times)

Sufayan.ah · **on:** Jul 10, 2018

Tangshan Coal Inc just issued a 10 percent, 25-year bond with a 1,000 par value that pays interest semiannually.

(a) How much can the investor expect in annual interest (in dollars)?
(b) How much can the investor expect in interest every six months (in dollars)?
(c) How much can the investor expect in par value at the end of the 25th year?

Question 2

Why are sole proprietorships so much more popular in terms of the number of firms than corporations? (This answer should identify the significant advantages to the sole proprietorship versus those of other forms of business organization.)

What will be an ideal response?

tuate · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

(a) 100
(b) 50
(c) 1,000

Answer to Question 2

Answer: Sole proprietorships are popular because they are easy to start up, with fewer regulations and reporting requirements than other forms of business organization. Sole proprietorships are also popular because they give individuals the opportunity to be their own boss, to make all of the decisions, and to realize 100 of the after-tax proceeds of the business.