If assets equal $95,000 and liabilities equal $40,000, then owners’equity equals _____.
1 answer:
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Answer:
coupon payment = $2025
so correct option is A) $2,025
Explanation:
given data
par value = $100,000
coupon rate = 4%
annual inflation rate = 2.5% = 0.025
so Semiannual rate = = 0.0125
to find out
coupon payment will the investor receive at the end of the first six months
solution
as we know principal would increase by the amount of inflation
so it will be = $100,000 ( 1 + 0.0125 )
so here coupon payment will as
coupon payment = $100,000 ( 1 + 0.0125 ) ×
solve it we get
coupon payment = $2025
so correct option is A) $2,025