Answer:
At the end of the sixth year, you will have:
= $8,487.17.
Explanation:
a) Data and Calculations:
Annual savings = $1,000
Interest rate per year = 10%
Period of savings = 6 years
First deposit = today
From an online financial calculator:
N (# of periods) 6
I/Y (Interest per year) 10
PV (Present Value) 0
PMT (Periodic Payment) 1000
Results
FV = $8,487.17
Sum of all periodic payments $6,000.00
Total Interest $2,487.17
Answer:
c. 10.38%
Explanation:
Loan Amount = $10,000
Quarterly Interest payment = $250
Interest Payment for the year = $250 x 4
Interest Payment for the year = $1,000
Nominal interest rate = ($1,000 / $10,000) x 100 = 10%
Nominal interest rate = r = 10%
Number of periods = m = 4
Effective Interest rate = [ ( 1 + r/m )^m]-1
Effective Interest rate = [ ( 1 + 0.1/4 )^4] -
Effective Interest rate = [ ( 1 + 0.025 )^4] -1
Effective Interest rate = 10.38%
Answer:
D. Cash flow statement
Explanation:
A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.
Answer:
Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be <u>lower than</u> the YTM with a call provision.
Explanation:
That is the correct answer to the question asked about bond indenture.
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