Answer: $880.57
Explanation:
Assuming Par value of bond is $1,000.
Value of bond = (Coupon * Present value interest factor of annuity, no. years, required return) + Par Value/ (1 + required return)^ no. of years
Coupon = 5% * 1,000 = $50
Value of bond = (50 * 5.9713) + 1,000 / (1 + 7%)⁸
= 298.565 + 582
= $880.57
Answer:
A) Cash is debited for $294,000. and,
C) Common Stock is credited for $294,000.
Explanation:
When Shares are Issued for Cash, recognize the Assets of Cash (Debit) and also recognize an equity element - Common Stock (Credit).
Answer:
The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.
Explanation:
The amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 can be calculated using the following formula:
Interest expenses deductible = (Taxable interest / Total interest) * Interest expenses .................... (1)
Where;
Taxable interest = $1,200
Total interest = $6,000
Interest expenses = $500
Substituting the values into equation (1), we have:
Interest expenses deductible = ($1,200 / $6,000) * $500
Interest expenses deductible = 0.20 * $500
Interest expenses deductible =$100
Therefore, the amount of interest expenses that Jennifer can deduct from her tax return for tax year 2019 is $100.
Explanation:
Ok so the Taylor Rule is one kind of targeting monetary policy rule of a central bank. The Taylor rule was proposed by the American economist John B. Taylor in 1992, who is currently the George P.Shultz Senior Fellow In Economics at and the director of Standford’s Introductory Economics Centre.
Also the Taylor Rule suggests that the Federal Reserve should raise rates when inflation is above target or when gross domestic product (GDP) growth is too high and above potential. It also suggests that the Fed should lower rates when inflation is below the target level or when GDP growth is too slow and below potential.
