<span>a.price floor
Where the government fixes the minimum retail price</span>
Answer:
Bond Price = $97.4457408 million rounded off to $97.45 million
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 will be,
Coupon Payment (C) = 113 million * 0.05 = 5.65 million
Total periods (n) = 30
r or YTM = 0.06 or 6%
The formula to calculate the price of the bonds today is attached.
Bond Price =5.65 * [( 1 - (1+0.06)^-30) / 0.06] + 113 / (1+0.06)^30
Bond Price = $97.4457408 million rounded off to $97.45 million
To get the total insurance premium, just add the three premiums:Total premium = liability + collision + comprehensivewhere:liability = $510collision = $220comprehensive = $ 130Total premium = $510+$220+$130 =$860
Answer:
Debit Cash $1,000 and credit Notes Receivable $1,000.
Explanation:
The adjusting entry is shown below:
Cash Dr $1,000
To Notes receivable $1,000
(Being the note receivable collected by the bank is recorded)
While recording the transaction, we debited the cash account as it increases the cash balance and credited the note receivable.
Hence, the second option is correct
Yes he should be because people had higher expectations