What grade are you in? I don't understand the problem
Answer:
The price of the bond is 2143,67
Explanation:
A zero coupon bond is a bond that does not pay coupon payments and instead pays one lump sum at maturity.
Zero coupon bond value= F/(1+r)^t
F = face value or a par value
r= rate of yield per period
t= time to maturity ( in periods)
Replacing
F = $10,000
We assume semiannual compounding periods
r= 5.2/2=2.6
t= 30 x 2=60
Zero coupon bond value= $10,000/(1+0.026)^60
Value = 2143,67
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $2,480
To Interest receivable $60
To Interest revenue $20
To Note receivable $2,400
(Being the collection of funds is recorded)
The computation of interest receivable is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $2,400 × 10% × (3 months ÷ 12 months)
= $60
And for interest revenue would be
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $2,400 × 10% × (1 months ÷ 12 months)
= $20
On the bottom of what ? Can you please take a pic of the question
Answer:
The price elasticity of demand for icecream is -0.75, that means that is inelastic.
Explanation:
Price elasticity of demand measures the porcentage of the change in the demand when there is a change in the price. If the change in porcentage of the demand is less than the pocentage of change in the price we talk about inelastic demand. An increase in the price of inelastic goods will result in bigger revenues, as the porcentage in the drop of sales is less than the porcentage of increase in the price.
The formula is: % in change demand/% in change of price
-3%/4= -0.75
The minus symbol indicates that when the price rises the demand decrease.
