Answer:
6.875%
Explanation:
In order to compute the real return, first, we have to determine the after-tax return which is shown below:
After-tax return = Pre-tax return - tax rate of Pre-tax return
= 14.5% - 25% × 14.5%
= 14.5% - 3.625%
= 10.875%
And, the inflation rate is 4%
So, the real return would be
= 10.875% - 4%
= 6.875%
Answer:
The new price of the bond is $928.94
Explanation:
Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.
Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.
As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.
Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30
Number of semiannual periods till maturity = 10 * 2 = 20 periods
New market interest rate = 6 + 1 = 7% annual
New semi annual market interest rate = 7% / 2 = 3.5%
Price of bond = 30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20
Price of bond = $928.938 rounded off to $928.94
We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.
<h3>
b) emergency transport</h3>
Emergency transport is used to get a patient to a hospital quickly. Medical transport involves moving someone who needs or wants medical care during the journey.
"Emergency care can make an important contribution to reducing avoidable death and disability in low- and middle-income countries. But emergency care needs to be planned well and supported at all levels--at the national, provincial and community levels"
The misconception that emergency transport cannot be cost effective in low-income settings is demonstrably inaccurate. "With better planning, the ongoing costs of emergency care can result in better outcomes and better cost-effectiveness. "
Hence the correct option is b) emergency transport
To learn more about emergency transport click below
brainly.com/question/20660966
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Answer:
Thus, the present value is $2045.52.
Explanation:
Use the below formula to find the present value:
Present value = FV ÷ (1 + r/4)^(n*4)
Present value :

Thus, the present value is $2045.52.