Answer:
0.811% per month is the amximum rate it can affor
or 9.732% annual rate with monhly compounding.
Explanation:
We have to solve for the rate at which the monthly payment equals 900 dollars.
C 900.00
time 240
rate r
PV $95,000.0000
Given the complexity of the formula we solve using excel or a financial calcualtor
we write on a1 =PV(A2;240;95000)
on a2 we write any number between 0 and 1
then we use goal seek tool adn define that we want A1 to be 95,000 by changing A2 (which is the argument for rate)
the value of A2 after this is our answer:
PV $95,000.0000
Answer:
Bond Price = $1213.18605 rounded off to $1213.19
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1,000 * 0.10 * 6/12 = $50
Total periods (n) = 10 * 2 = 20
r or YTM = 0.07 * 6/12 = 0.035
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035] + 1000 / (1+0.035)^20
Bond Price = $1213.18605 rounded off to $1213.19
Answer:
The correct answer is E) None of the above.
Explanation:
when you purchase a straddle on euros, this means you simultaneously buy a call option and a put option on the same common stock on euros bearing a similar expiration date, and the same place where the security can be bought and sold. What this means is, you tend to make a profit once the common stock makes a sharp move. Normally, call options give investors the liberty to sell stock expecting a rise in price, while a put option gives the investors want to sell their stock because they predict a fall in price. These two option contracts aim at making investors make profits.
Answer:
We can assume that both Strike and Bailey are American companies and that they operate in that US under the UCC rules. Under UCC rules they are both considered merchants since they trade with the goods related to the contract. Strike's offer was very precise and Bailey's acceptance was made in a reasonable manner which can be considered a valid acceptance.
The only difference exists with the shipping company, which the UCC rules consider a conflicting term and Strike should have either objected or ratified it before sending the goods. Since Strike didn't object Bailey's terms, then by using a different truck company it is breaching the contract.
Answer:
Dividend expense will be $20000
Explanation:
We have given share used = 12000 shares
And Treasury stock = 2000 shares
It is given a regular dividend of $2 per share
We have to find the dividend stock
Outstanding share = Share used - treasury stock = 12000 - 2000 = 10000 shares
So dividend expense = $2×10000 = $20000
So dividend expense will be $20000
