Pay PMI (private mortgage insurance) which is the amount the lender charges to protect their interests in case the borrower stops paying and defaults on the loan.
Answer:
Yield to maturity (YTM) is 1.91% higher than yield to call (YTC).
Explanation:
YTM = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
YTM = {$120 + [($1,000 - $1,275)/20]} / [($1,000 + $1,275)/2] = $106.25 / $1,137.50 = 9.34%
YTC = {coupon + [(call price - market value)/n]} / [(call price + market value)/2]
YTC = {$120 + [($1,120 - $1,275)/5]} / [($1,120 + $1,275)/2] = $89 / $1,197.50 = 7.43%
9.34% - 7.43% = 1.91%
Answer:
31st December
Dr Interest expenses 72
Cr Interest Payable 72
(to record interest expenses payable as at 31st December for note owed to Hyatt)
Dr Interest expenses 200
Cr Interest Payable 200
(to record interest expenses payable as at 31st December for note owed to the Bank)
Dr Interest expenses 12
Cr Interest Payable 12
(to record interest expenses payable as at 31st December for note owed to Towne)
Explanation:
The total interest expenses payable as at 31st December is calculated for each creditors as below:
- 36 days Interest expenses owed to Hyatt: 36/360 * 9% * 8,000 = $72.
- 24 days Interest expenses owed to the Bank: 24/360 x 10% x 30,000 = $200.
- 9 days Interest expenses owed to Towne: 9/360 x 4% x 12,000 = $12.
Answer:
Itis better to take the case in hand of 207,000,000 millions
Explanation:
We need to calcualte the present value of a geometric annuity-due
g 0.05
r 0.04
C 4,515,432
n 26
n 26
127,557,727.45
As is an annuity due, we multiply by (1+r)
127,557,727.45 x (1+0.04) = 132,660,036,548
The present value of the 207,000,000 option is better as the annuity present value is around 130,000,000
The transaction where Livingston company pays utilities of $2,500 in cash, this transaction would be recorded as a Debit to Utilities Expense $2,500 and a Credit to Cash $2,500.
<h3>What is an
utilities?</h3>
It refers to the cost consumed in a reporting period related to electricity, heat, sewer, water expenditures etc. These expenses are necessary for running the business and are variable costs that change based on consumption.
The category is also associated with some expenditures for ongoing telephone and internet service.
In conclusion, this transaction would be recorded as a Debit to Utilities Expense $2,500 and a Credit to Cash $2,500.
Read more about utilities
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