Solution:
Annual coupon payment of the bond is $80
At the beginning of the year, remaining maturity period is 2 years.
Price of the bond is equal to face value, i.e. the initial price of the bond is $1000.
New price of the bond = present value of the final coupon payment + present value of the maturity amount.
New price of the bond = 
where, r is the yield to maturity at the end of the year.
Substitute 0.06 for r in the above equation,
Therefore new price of the bond is = 
= 
= $ 1010.87
Calculating the rate of return of the bond as
= 0.09887
Therefore, the rate of return on the bond is 9.887%
≈ 10 %
Answer:
Store of value.
Explanation:
In economics or financial accounting, money can be defined as any asset used by an individual or business entity to make purchases of goods and services at a specific period of time.
Simply stated, money refers to any asset which can be used to purchase goods and services by customers.
This ultimately implies that, money is any recognized economic unit that is generally accepted as a medium of exchange for goods and services, as well as repayment of debts such as loans, taxes across the world.
The three (3) main functions of money all over the world are;
I. Medium of exchange.
II. Unit of account.
III. Store of value.
In this scenario, Jeffrey went to a financial manager to begin planning for his son's future by opening a college savings account. Thus, this is is an example of a store of value because the purchasing power was transferred from the present to the future.
In conclusion, money being a store of value makes it possible to transfer purchasing power between traders and buyers from the present to the future.
- Capital adequacy
- Asset quality
- Management
- Earnings
- Liquidity
- Sensitivity
CAMELS is an international rating system to rate banks, it was created in the United States as a supervisory rating system.
In order to ensure their financial strength, banks have periodic examinations by a Office of the Comptroller of the Currency. Bank examiners issue CAMELS, a numerical rating to the bank as a result of the examination, examiners score each bank in the six factors listed above. Banks score between 1 and 5 in each category (1 being the highest).
Hope this helps, HAVE A BLESSED AND WONDERFUL DAY! As well as a great Valentines Day! :-)
- Cutiepatutie ☺❀❤
Answer:
$27,250
Explanation:
The computation of incremental income or loss on reworking the units is shown below:-
For computing the incremental income or loss on reworking the units first we need to follow some steps which is shown below:-
Incremental revenue per unit = Selling price after rework - Selling price as scrap
= $22.00 - $5.60
= $16.40
Total Incremental Revenue = Incremental revenue per unit × Total defective units
= $16.40 × 2,500
= $41,000
Total rework costs = Total defective units × Defects per unit
= 2,500 × $5.50
= $13,750
Now,
Incremental income or loss on reworking the units = Total Incremental Revenue - Total rework costs
= $41,000 - $13,750
= $27,250
The right answer for the question that is being asked and shown above is that: "d. Federal Reserve Note." a government bond that is repaid within 3 months to a year is called the d. Federal Reserve Note.
