Answer:
Explanation:
the file attached shows the whole solution
Answer:
Bond Price = $1115.075775 rounded off to $1115.08
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM or market interest rate will be,
Coupon Payment (C) = 1000 * 0.067 = $67
Total periods (n) = 14
r or YTM = 0.055 or 5.5%
The formula to calculate the price of the bonds today is attached.
Bond Price = 67 * [( 1 - (1+0.055)^-14) / 0.055] + 1000 / (1+0.055)^14
Bond Price = $1115.075775 rounded off to $1115.08
Answer:
Here no loss would be recognized by Julian on the transfer of shares and his basis inn Apricot corporation would be $400,000.
Explanation:
In the case of transfer of share made by Julian ( from Lemon company to Apricot company ) , no loss would be recognized by him, as the loss or gain would have been recognized only when the sale was made but that didn't happened.
His basis in the Apricot corporation would be equal to his tax basis in the Lemon company, so therefore his basis is equal to $400,000.
Answer:
C: By spending very little effort on searching for information and considering options
Hope this helps!
Answer:
True
Explanation:
Economic profits takes into account the impact of both the explicit costs and implicit costs. Accounting profit only considered the impact of explicit costs.
Explicit costs refers to the costs which are incurred for operating a business. It includes all the expenses for doing the transactions and can be measured in monetary terms.
Implicit costs are also defined as the opportunity costs. Opportunity costs refers to the foregone benefit that could be obtained from the next best alternative.
Economic profit = Total revenues - Explicit costs - Implicit costs
Accounting profit = Total revenue - Explicit costs
