You'll incur a prepayment fee
Answer:
$1.58 = €1.00
Explanation:
To calculate the exchange rate breakeven point, you divide the longer-term bond figure by the shorter-term bond figure, after which you’ll do a further exponential calculation, increasing the figure to the power of one divided by the disparity in the years of the two maturities.
the solution to the question is:
$5,000 option premium on €62,500 amounts to $0.08 per euro.
With a strike price of $1.50 =€1.00 the exchange rate will have to be ($1.50+$.80), therefore $1.58 = €1.00 for you to break even.
Answer:
The bond's yield to maturity is greater than its coupon rate.
Explanation:
At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.
The coupon rate is given as annual interest divided by face value
While
The yield is interest/ current price.
The answer to the question is therefore
The bond's yield to maturity is greater than its coupon rate.
Answer:
a. debit Depreciation Expense $ 290
credit Accumulated Depreciation $ 290
Explanation:
The depreciation has to be calculated for the month of December i.e one month.
The annual depreciation per the question is $ 3,480 so the monthly depreciation expense is $ 290.
The depreciation expense account is debited, and the credit is to accumulated depreciation account. The equipment account is not credited directly, This is to show the costs and the accumulated depreciation separately.
The equipment on the balance sheet is shown as net of accumulated depreciation.
Answer:
S1
Explanation:
Law of Supply, is the law which states or claims that all else being constant or equal, then the quantity supplied of the good increases when the price of the goods also increases.
Ans this states the positive relationship among the price and the quantity, thus an upward sloping curve. Therefore, it is the curve (supply curve), which is more likely for the CDs.
This curve shows the relationship among the amount that the sellers willing to and able to supply and the price of the CDs, which is called as the quantity of CDs supplied.
