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dedylja [7]
3 years ago
11

Which bond recommendation would be the MOST safe for an individual who seeks income that is free from federal income tax?

Business
1 answer:
12345 [234]3 years ago
3 0

Answer:

AA-rated revenue bond that is escrowed to maturity.

Explanation:

AA-rated revenue bond that is escrowed to maturity, is the bond recommendation for an individual who seeks income that is free from federal income tax. Escrowed to maturity bond are pre-funded municipal bond and it is backed by the government. The Issuer invests the new bond´s income too high credit securities and also issuer hold proceeds from the new bond issue in a separate escrow account to pay off existing bond when it matures.

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just paid $2.55 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be
babymother [125]

Answer:

$64.04.

Explanation:

P0 = [$2.55 (1 + 0.055) / (0.097 - 0.055)]

P0 = 2.69 / 0.042

P0 = $64.04.

8 0
3 years ago
If the demand for a product decreases, we would expect a equilibrium price and equilibrium quantity to both decrease. b equilibr
seropon [69]

Answer:

a. Equilibrium price and equilibrium quantity to both decrease.

Explanation:

When the demand of a product decreases, it generates an excess supply at the initial price and this will generate the price to decrease. When the price goes down, suppliers are not willing to sell the same amount of products which will cause a decrease in the quantity.

8 0
3 years ago
Suppose you purchase a $5,000 bond that pays 7% interest annually and matures in five years. If the inflation rate during the ne
galina1969 [7]

Answer:

2.88%

Explanation:

Use the following formula to calculate the real rate of return

Real rate of return = \frac{( 1 + Nominal interest rate )}{( 1 + inflation rate)} -1

Where

Nominal Interest rate = 7% = 0.07

Inflation rate = 4% = 0.04

Placing values in the formula

Real rate of return = \frac{( 1 + 0.07 )}{( 1 + 0.04)} -1

Real rate of return = \frac{1.07}{1.04} -1

Real rate of return = 1.0288 - 1

Real rate of return = 0.0288

Real rate of return = 2.88%

8 0
3 years ago
A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year-end, however, it has not begun
serg [7]

Answer:

Recognize the assessments as assessments receivable and revenue.

Explanation:

Practically, this will result in a receivable in the reserve fund, if the amounts are not received when due.

This could be seen when an/a corporation may decide on the amount of an assessment years before the cash is been used.

But cannot really obtain the revenue at the time of the decision, since the corporation can change its decision up until the day the amount is due. Also there are no specific parties being assessed, until the owner on record is known on the day the assessment is due, also the assessment should be recognized as revenue of the reserve fund when due.

4 0
3 years ago
A web designer quits a project where she was paid $50,000 on completion of the project. She starts a new company with sales reve
shepuryov [24]

Answer:

$150,000

Explanation:

Amount paid after project completion was =$50,000

The sales revenue for the new company = $550,000

Total deductions =$(250,000+70,000+30,000)=$350,000

Economic profit is the difference between the earned revenue from sell of outputs and cost of all inputs used and any opportunity costs.

In this case, opportunity cost will be the amount received by the web designer after the quit of the project.

Economic profit = $550,000 - $350,000-$50,000 = $150,000

7 0
3 years ago
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