Which of the following statements is false?

Consider an investor who, on January 1, 2019, purchases a TIPS bond with an original principal of $116,000, an 10 percent annual

lakkis [162]

Answer:

(a) $5,823.20

(b) $116,464.

(c) $5,881.43.

Explanation:

Given that,

Original principal = $116,000

Interest rate = 0.5% semi-annual

Time period = 10 years

Inflation rate = 0.4% semi-annual

(b) Inflation adjusted premium at the end of 6 months on June 30,2019:

= Original principal × Semi-annual inflation rate

= $116,000 × (1 + 0.004)

= $116,464.

Therefore, the inflation adjust principal at the beginning of six months is $116,464.

(a) First coupon payment paid on June 30,2019:

= inflation adjust principal × Interest rate

= $116,464 × 0.05

= $5,823.20

(c) Inflation adjusted premium at the end of 6 months on December 31,2019:

= Principal in June 30,2019 × Semi-annual inflation rate

= $116,464 × (1 + 0.01)

= $117,628.64.

Coupon payment on December 31,2019:

= Inflation adjusted premium × Interest rate

= $117,628.64 × 0.05

= $5,881.43.

6 0

3 years ago

"what is the goal of testing an application before it is put into production"

Vilka [71]

To see if it works effectively, if it's safe

7 0

3 years ago

For its three investment centers, Gerrard Company accumulates the following data: I II III Sales $2,060,000 $4,019,000 $4,085,00

Andrej [43]

Answer:

Investment centre ROI

1 24.9%

II 32.0%

III 34.0%

Explanation:

<em>Return on Investment is the proportion of operating assets that an investment center earned as as net operating income. </em>

It is calculated as follows

ROI = operating income/operating assets

Investment centre

I 1,267,000/5,068,000=24.9%

II 2,579,840/8,062,000=32.0%

III 4,137,800/12,170,000=34.0%

7 0

3 years ago

Who in t.f would let biden win

harkovskaia [24]

Answer:

people who are stupid lol

Explanation:

7 0

3 years ago

Read 2 more answers

Of the last 100 customers entering a computer shop, 25 have purchased a computer. If the classical method for computing probabil

nlexa [21]

Answer:

correct option is b.0.50

Explanation:

given data

computer shop = 100 customers

purchased computer = 25

solution

we know that past data does not affect the probability of next outcome

so when they buying computer or net

so here

probability of customer buy computer is = $\frac{1}{2}$ = 0.5

and

probability of customer not buy computer is = $\frac{1}{2}$ = 0.5

so here chance of buying as they buying or not buying is 50 %

so correct option is b.0.50

3 0

3 years ago