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gtnhenbr [62]
3 years ago
14

"A customer purchases 3M of Chicago Water Authority 9% revenue bonds maturing in 2042 at 87. The interest payments are Mar 15th

and Sept 15th. The trade took place on Tuesday, April 15th. How much accrued interest will the customer be required to pay the seller?"
Business
1 answer:
tensa zangetsu [6.8K]3 years ago
7 0

Answer:

$24

Explanation:

Given the following variables:

3M stands for $3,000 face amount of bonds (M is Latin for $1,000).

The day count is = 32 days interest

The bonds = 3 bonds

The interest rate = $90

The day basis = 360 days. (Considering that each month has 30 days)

Hence, using the formula

Accrued Interest = [Interest Rate X (Time Period / 365)] X Loan Amount

= 9% x (32 days / 360) x $3000

= $23.9999997 ≈ $24.

Therefore the final answer for accrued interest the customer will be required to pay seller = $24.

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The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish a
Sonja [21]

Answer:

third

Explanation:

The utility for consuming the first donut is 9 utils.

The utility for consuming the second donut is the difference from the total utility for the first two and just the first donut.

U_2 = 19-9 = 10\ utils

The utility for consuming the third donut is the difference from the total utility for the first three and just the first two donuts.

U_3 = 30-19 =11\ utils

The utility for consuming the fourth donut is the difference from the total utility for the first four and just the first three donuts.

U_4 = 38-30 =8\ utils

Since the utility for the 4th donut is less than the utility for the 3rd donut, utility begins to diminish after consuming the third donut.

6 0
3 years ago
Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni
vladimir1956 [14]

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

8 0
3 years ago
Vulcan, Inc., has 8.7 percent coupon bonds on the market that have 10 years left to maturity. The bonds make annual payments and
Lana71 [14]

Answer:

$880.72

Explanation:

Bond price will be calculated by following formula

Bond Price = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n ]

Bond Price = $87 x [ ( 1 - ( 1 + 0.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1 + 0.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $87 x [ ( 1 - ( 1.107 )^-10 ) / 0.107 ] + [ $1,000 x ( 1.107 )^-10 ]

Bond Price = $518.87 + $361.85

Bond Price = $880.72

6 0
3 years ago
What are some types of PPE that employer must pay for
WITCHER [35]
Respiratory masks when working in areas with fumes or heavy dust, safety glasses, surgical suite growing and shoe covers, gloves (hospital), these are some.
5 0
3 years ago
A study has been conducted to determine if one of the departments in Mary Company should be discontinued. The contribution margi
strojnjashka [21]

Answer:

It is better to continue

Explanation:

Did my research

5 0
3 years ago
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