PLEASE HELP WILL GIVE BRAINLIEST TO CORRECT ANSWER

Nancy Groom owns one $1,000 corporate bond issued by General Motors. The bond pays 8.5 percent. If interest is paid semiannually

svlad2 [7]

Answer:

$42.50

Explanation:

The computation of the amount received at the end of each six month period is shown below:

= Issued amount × rate of interest × number of months ÷ total number of months in a year

= $1,000 × 8.5% × 6 months ÷ 12 months

= $42.50

By multiplying the issued amount with the rate of interest and the number of months we can get the amount of the check and the same is shown above

6 0

3 years ago

Which of the following is a characteristic of a hybrid ARM loan

Marta_Voda [28]

Answer choices are:

a. The loan must have a cosigner
b. Used for vehicle purchases only
c. Fixed initial rate followed by periodic rate adjustments
d. A short duration of a loan, usually five years or less
Correct answer choice is:

c. Fixed initial rate followed by periodic rate adjustments

hybrid ARM loan is a loan that starts with a fixed interest rate for a specific period of time, that can be in few years, and later on, the terms are changed to a variable rate of interest for the remaining amount of time period.

7 0

3 years ago

Read 2 more answers

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, t

tino4ka555 [31]

Answer:

a. Journal entries

Particulars Debit Credit

Revenue: Addition to permanent $510,000

endowment

Revenue investment income $48,000

Revenue : increase in fair value $8,000

of investment

Expenditure - subscription $39,500

Fund balance $526,500

b. Statement of revenue , expenditure , and changes in fund balance

Particulars Amount

Revenue

Addition to permanent endowment $510,000

Investment income $48,000

Increase in fair value of investment $8,000

Total revenue $566,000

Expenditure

Library subscription $-39,500

Net change in fund balance $526,500

Beginning fund balance 0

Ending fund balance $526,500

c. Balance sheet

Assets

Cash $8,500

Investments $5,18,000

Accrued interest receivable $2,000

Total assets $528,500

Liabilities and fund balance

Liabilities

Accounts payable $2,000.00

Fund balance

Non spendable permanent $510,000

fund principal

Assigned to library $16,500

($526,500 - $510,000)

Total fund balance $526,500

Total liabilities and fund balance $528,500

3 0

3 years ago

A small risk of loss in an investment.

iVinArrow [24]

A small risk of loss in an investment:

Investment risk can be characterized as the likelihood or probability of the event of misfortunes comparative with the normal profit for a specific venture. Portrayal: Stating basically, it is a proportion of the degree of vulnerability of accomplishing the profits according to the desires for the financial specialist.

The potential advantage of a "high-chance venture" is that quite possibly you could make an extremely exceptional yield on the speculation too. The five measures incorporate the alpha, beta, R-squared, standard deviation, and Sharpe proportion. Hazard measures can be utilized separately or together to play out a hazard appraisal.

7 0

3 years ago

A project is expected to produce cash flows of $48,000, $39,000, and $15,000 over the next three years, respectively. After thre

german

Answer:

$80,809.09

Explanation:

Present value of the cash flows = ∑(Cash flow × Present value factor)

Present value factor = (1 + r)⁻ⁿ

Here,

r is the discount rate = 15.25% = 0.1525

n is the year of cash flow

thus,

Year n Cash flow PVF Present value

Year 1 1 $48,000 0.86768 $41,648.59

Year 2 2 $39,000 0.75287 $29,361.80

Year 3 3 $15,000 0.65325 $9,798.70

=============================================================

Present value of the project = $41,648.59 + $29,361.80 + $9,798.70

= $80,809.09

7 0

4 years ago