Answer:
The price of the bond will be $879
Explanation:
Price of the bond is the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
According to given data
Coupon payment = C = $1,000 x 6.2 = $62 annually = $31 semiannually
Number of periods = n = 2 x 8 years = 16 periods
Current Yield = r = 8.3% / 2 = 4.15% semiannually
Price of the Bond = $31 x [ ( 1 - ( 1 + 4.15% )^-16 ) / 4.15% ] + [ $1,000 / ( 1 + 4.15% )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1 + 0.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1 + 0.0415 )^16 ]
Price of the Bond = $31 x [ ( 1 - ( 1.0415)^-16 ) / 0.0415 ] + [ $1,000 / ( 1.0415 )^16 ]
Price of the Bond = $521.74 + $357.26 = $879
Answer:
assets on the balance sheet.
Explanation:
Reserves are percentages of deposits that are required for depository institutions to keep to meet unforeseen contingency. they are usually kept in bank vaults
they are assets and they cannot be lent out
Answer:
<em>Options Include:</em>
A. demand will become more price elastic.
B. price elasticity of demand will not change as price is lowered.
<em>C. demand will become less price elastic. is Correct</em>
D. the elasticity of supply will increase.
Explanation:
<em>Typically as a broadly accurate guide, the product is called elastic if the quantity of a good demanded or purchased increases more than the change in price. </em>
(Price increases by + 5%, but demand decreases by -10%). When the shift in the purchased quantity is the same as the price change (say, 10 per cent/10 per cent= 1), the product is said to have price elasticity unit (or unitary).
Eventually, when the purchased quantity changes less than the price (say,-5 per cent demanded for a price change of+ 10 per cent), then the product is called inelastic.
Answer: D -LIFO results in a higher net income than FIFO when costs are falling.
Explanation:
The LIFO and FIFO are methods of accounting for inventory.
LIFO means last in, first out. It means the last inventory purchased is the first inventory sold.
FIFO means first in,first out. It means older inventories are sold off first.
During period of rising prices, LIFO results in lower net income because the Cost of Goods Sold is higher. Inventories cost more during periods of rising prices.
When prices are falling , the LIFO method results in a lower cost of goods sold and therefore a higher net income.
