Answer:
For the investment on the city of Athens bond, Curtis have an after-tax rate of return of 5.94%.
Explanation:
The marginal tax rate affects the interest Curtis will receive for its investment.
For the investment on the city of Athens bond, Curtis have an after-tax rate of return of 5.94%.
![r=(1-MTR)*i=(1-0.28)*0.0825=0.72*0.0825=0.0594=5.94\%](https://tex.z-dn.net/?f=r%3D%281-MTR%29%2Ai%3D%281-0.28%29%2A0.0825%3D0.72%2A0.0825%3D0.0594%3D5.94%5C%25)
<span>A reload fee is a fee that is charged to a prepaid card because you are loading funds onto the card when you have them available. The reload fee applies to cards in which the cash is "real" versus chargining to a credit card to pay at a later time. The credit card company will charge a late fee, balalnce transer fee and some will charge a membership fee. </span>
Answer:
100 years
53.8 years
10.1 years
18.4 years
Explanation:
country to double given its growth rate
Number of year for GDP to double = 70 / growth rate of country
1. 70 / 0.7 = 100
2. 70 / 1.3 = 53.8
3. 70 / 6.9 = 10.1
4. 70 / 3.8 = 18.4
Answer:
C. represent the smallest category of new products.
Explanation:
New-to-the-world products are products that are extremely new which are not modifications and improvements on previous products nor derivatives of those previous/existing products. They belong to the category of products that has previously not existed before in any form. They tend to create entirely new markets and are usually the smallest category of new products because most new products are either modifications of old products or derivatives of those old products. They are production that usually comes about from fresh scientific and/or technological innovation.
Answer:
<em>Miller-bond</em>:
today: $ 1,167.68
after 1-year: $ 1,157.74
after 3 year: $ 1,136.03
after 7-year: $ 1,084.25
after 11-year: $ 1,018.87
at maturity: $ 1,000.00
<em>Modigliani-bond:</em>
today: $ 847.53
after 1-year: $ 855.49
after 3 year: $ 873.41
after 7-year: $ 918.89
after 11-year: $ 981.14
at maturity: $ 1,000.00
Explanation:
We need to solve for the present value of the coupon payment and maturity of each bonds:
<em><u>Miller:</u></em>
C 80.000
time 12
rate 0.06
PV $670.7075
Maturity 1,000.00
time 12.00
rate 0.06
PV 496.97
PV c $670.7075
PV m $496.9694
Total $1,167.6769
<em>In few years ahead we can capitalize the bod and subtract the coupon payment</em>
<u>after a year:</u>
1.167.669 x (1.06) - 80 = $1,157.7375
<u>after three-year:</u>
1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855
If we are far away then, it is better to re do the main formula
<u>after 7-years:</u>
C 80.000
time 5
rate 0.06
PV $336.9891
Maturity 1,000.00
time 5.00
rate 0.06
PV $747.26
PV c $336.9891
PV m $747.2582
Total $1,084.2473
<u />
<u>1 year before maturity:</u>
last coupon payment + maturity
1,080 /1.06 = 1.018,8679 = 1,018.87
For the Modigliani bond, we repeat the same procedure.
PV
C 30.000
time 24
rate 0.04
PV $457.4089
Maturity 1,000.00
time 24.00
rate 0.04
PV 390.12
PV c $457.4089
PV m $390.1215
Total $847.5304
And we repeat the procedure for other years