Answer:
= $877.32
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).</em>
<em>Value of Bond = PV of interest + PV of RV</em>
The value of bond for Jasper Inc can be worked out as follows:
Step 1
<em>PV of interest payments</em>
<em>Semi annul interest paymen</em>t
= 4.5% × 1000 × 1/2
= 22.5
<em>Semi-annual yield</em> = 5.6/2 = 2.8% per six months
<em>Total period to maturity (in months)</em>
= (2 × 19) = 38 periods <em> (Note it was sold a year ago)</em>
<em>PV of interest = </em>
<em> </em>22.5 × (1- (1+0.028)^(-38)/0.028)
= 22.5 ×23.20871226
= 522.196
Step 2
<em>PV of Redemption Value</em>
= 1,000 × (1.056)^(-19)
= 355.128
<em>Price of bond</em>
= 522.19 + 355.12
= $877.32
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Answer:
Finch has an interest expense deduction of the amount of $6,300.
Explanation:
Based on the information given in a situation where Finch pays George interest of the amount of $6,300 in which the amount of $7,000 was the principal payment on the note which means that Finch will have an interest expense deduction of the amount of $6,300 reason been that the amount of interest that was paid to George which is $6,300 will be the amount that is allowed for deduction.
The phrase that describes his investment strategy is "Risky and Long term investor".
Basically, an investment strategy refers to set of rules, behaviors or procedures which are designed to guide an investor's on the selection of an investment portfolio.
- Majority of investors fall between lower risk investor, moderate risk investor and higher risk investor.
- The portfolio that he invests in ( stocks and high-yield bonds) is an example of high risk portfolio
In conclusion, the phrase that describes his investment strategy is "<em>Risky and Long term investor</em>"
Read more about investment strategy:
<em>brainly.com/question/1101043</em>
Answer:
True
Explanation:
the risk to the firm of being unable to obtain funds when needed is lower than if it had an informal line of credit.
Answer:
This is the form of marketing that presents your benefits of your product to a particular audience.
Explanation:
