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Kay [80]
4 years ago
11

Megan buys a bond that is redeemable for its par value of 20,000 after 5 years. The bond pays coupons of 800 annually. The bond

is bought to yield 8% annually. Calculate the accumulation of discount (principal) in the 4th coupon.
Business
1 answer:
vivado [14]4 years ago
3 0

Answer:

685.87.

Explanation:

Yield (Y) = 8%

Number of periods (n) = 5 years

Par value of the bonds (FV) = 20,000

Coupon Payment (PMT) = 800

Required: accumulation of discount in 4th coupon

The amount of discount in 4th coupon would be equal to the difference between value of bond at the end of 3rd coupon payment and value of bond at the end of 4th coupon payment.

Value of bond at the end of 3rd coupon payment can be calculated using financial calculator as below:

Input. Output

Y 0.08

n. 2

PMT -800

FV -20000

PV. 18573.39

Value of bond at the end of 4th coupon payment can be calculated using financial calculator as below:

Input Output

Y. 0.08

NPER. 1

PMT. -800

FV. -20000

PV. 19259.26

Thus, amount of discount accumulated in 4th coupon payment = 19,259.26 – 18,573.39 = 685.87.

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Alja [10]

Answer:

Store A = $9

Store B = $8

Store C = $10

Explanation:

Finance charges calculated by average daily balance finance charges basis, adjusted balance method finance charges basis and Previous Balance Method Finance Charge basis is calculated as follows

Store A:

Average Daily Balance Finance Charge basis = ($500 + $400) /2

Average Daily Balance Finance Charge basis = $450

Finance Charges = $450 x (24% / 12)

Finance Charges = $9

Store B:

Adjusted Balance Method Finance Charge basis = $500 - $100

Adjusted Balance Method Finance Charge basis = $400

Finance Charges = $400 x (24% / 12)

Finance Charges = $8

Store C:

Previous Balance Method Finance Charge basis = $500 - $0

Previous Balance Method Finance Charge basis = $800

Finance Charges = $500 x (24% / 12)

Finance Charges = $10

3 0
4 years ago
I need help! I want to make a dog walking, rescuing, and training business and I don't know how to convince my parents to let me
mixer [17]

You could start out by finding out how much demand there is for this kind of service. Go around your neighborhood and ask how likely everyone would be to utilize a dog walking or training business, and how much they would be willing to pay for such a service. Alternatively, you could create a survey online and send it to groups within your city. You can create a survey using Google Forms.

If there is enough demand for it and if the price is right, then present this information to your parents. This way you can show them that you're very serious about starting your own business and you have the know-how to do so.

Starting out with just a focus on dog-walking could be great, and then you could expand from there to training. If you have a good sized yard or a nearby dog park to work at for training, then you're set. After that you can move on to dog rescuing. Of course, you will need more space for rescuing dogs and will definitely need at least a yard.

Good luck with your parents and good luck with the business!

7 0
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Power Plate Inc., a consumer electronics manufacturer, introduced a new solar cooker in the market. The team responsible for the
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Answer:

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Explanation:

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Although he is not sure about specific products, Diogo heads directly for a store selling Godiva Chocolates, because he knows th
Shalnov [3]

Answer:

brand awareness is the correct answer.

Explanation:

6 0
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1. When does a home seller generally fill out a property condition disclosure form?
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When selling a house
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