The interest rate offered on the bond is 11.94%.
<h3>What is the interest rate on the bond?</h3>
The interest rate of the bond can be determined by calculating the yield to maturity of the bond. The yield to maturity is the interest rate that equates the price of the bond to the future value of the bond.
The yield to maturity can be determined using a financial calculator:
- Cash flow in year 0 = $-134
- Cash flow in year 1 = $150
YTM = 11.94%
To learn more about yield to maturity, please check: brainly.com/question/26376004
Answer:
Providing a subsidy to correct for an underallocation of resources.
Explanation:
In Economics, subsidy can be defined as the amount of money or benefits such as tax reduction given by the government to sellers in order to sustain production and enable the buy to continuously purchase the product.
If the production of a product or service involves external benefits, then the government can improve efficiency in the market by providing a subsidy to correct for an underallocation of resources such as capital, land and labor used for production of these products.
Excessive spare parts inventories, a lack of transferable employee skills, increased support costs.
Answer: $9909
Explanation:
Let the amount that will be paid be represented by y. The question can now be solved as:
(10000 - y)/10000 × 360/182 = 0.018
(10000-y)/10000 = 0.018 × 182/360
(10000 - y)/10000 = 0.0091
10000-y = 0.0091 × 10000
10000 - y = 91
y = 10000 - 91
y = $9909
Answer:
I prepared an amortization schedule using an excel spreadsheet. The original monthly payment was $836.44. After the 120th payment, the remaining principal balance was $68,940.64. Since she didn't pay anything for 1 year, the new principal balance will be $68,940.64 x (1 + 8%) = $74,455.89
I prepared another amortization schedule for the remaining 9 years, and the monthly payment is $969.32. She will pay off the loan in 108 months.
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