Answer:
Explanation:
30 - 21 = 9 years
r = 3% inflation
FV = 25,000
We know that FV = PV(1+r)^n
25,000 = PV(1+0.03)^9
PV = 25,000/ 1.3047731
PV = 19,160.42, this is how much it worth today
100% percent State Farm
Who wOuLdN’t
Economic wants are the products and goods that people need and want; if they had unlimited purchasing power, they would want to obtain all of them.
In contrast economic preferences are compared to something, so while you might prefer one thing to another, you might not necessarily need it, or you might even need and want both of them!
Answer:
a. 1.8716%
b. $13,937.9955
Explanation:
The computation is shown below:
a. For accrued interest
= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)
= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)
= 2.3750% × 0.7880
= 1.8716%
b. Now the dirty price is
= Face value × (accrued interest percentage + current price quoted on the bond)
= $13,000 × (1.8716% + 105.34375%)
= $13,000 × 107.21535%
= $13,937.9955
By applying the above formulas we can get the accrued interest and the dirty price