Answer:
5.657%
Explanation:
Data provided:
Face value = $1,000
Current market price = $640
Time of maturity, t = 8 year
Now,
the compounding formula is given as:
Face value = Current amount × 
where,
r is the rate i.e pretax rate of debt
n is the number of times the interest is compounded i.e for semiannual n = 2
thus, on substituting the values, we get
$ 1,000= $ 640 × 
or
1.5625 = 
or
= 1.0282
or
r = 0.05657
or
pretax cost of debt = 0.05657 × 100% = 5.657%
Answer:
a. 41.6 million
b. 42.28 million
Explanation:
A) GIven
forecast in june = Sjune = 42 million
Checks recived in june = Xjune = 40 million
Smoothing constant = a = 0.2
So for july
Sjuly = a*Xjune + (1-a)*Sjune
=0.2*40 + (1-0.2)*42 million
=8+33.6 = 41.6 million
B) forecast in july = Sjuly = 41.6 million
Checks recived in july = Xjuly = 45 million
Smoothing constant = a = 0.2
So for August
Saugust = a*Xjuly + (1-a)*Sjuly
=0.2*45 + (1-0.2)*41.6 million
=9+33.28 = 42.28 million
<em>Note: This uses an exponential smoothing to forecast the results, but from the number of checks recived we see that it increases linearly. So we need a linear forecasting method .</em>
Answer: b. the minor's parents or guardians are responsible
The minor's parents or guardians are responsible for the financial consequences of a minor's driving, whether the minor has a license or not. It is a law under a legal concept called "vicarious liability" imposed in most states in the U.S
Bonds have a maturity date, are perpetual, and pay a coupon rate.
