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WINSTONCH [101]
2 years ago
5

Assume Jennifer has owned an EE bond for 4 years. The fixed rate of interest is 10% and the current value of the bond is $4000.

If Jennifer were to cash in the bond tomorrow, how much interest will she lose (approximately) as a penalty
Business
1 answer:
lakkis [162]2 years ago
3 0

Answer:

400

Explanation:

Given:

Face Value of the bond = $4000

The fixed rate of interest is r = 10%

If f Jennifer were not to cash in the bond tomorrow, it means she have the value of $4000  after 4 years. But tomorrow she were to cash, so the interest she lose is:

I = FV*r = 4000*10% = 400

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2 years ago
Your broker suggests that the stock of DUH is a good purchase at $25. You do an analysis of the firm, determining that the recen
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The correct answer is "$28.03".

Explanation:

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Now,

= 1.4+1.34\times 8-1.4

= 1.34\times 8

= 10.244 (%)

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The fair value will be:

= 1.4\times \frac{1.05}{.10244}-.05

= 28.03

Absolutely, the proposal including its brokerage must be adopted because as fair market value was almost $25.

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2 years ago
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3 years ago
Which situation would allow a country to increase the goods it imports despite spending the same amount of money?
Nataly [62]

A situation that would allow a country to import more goods for the same amount of money is A. The exchange rate for the country's currency increased.

<h3>What happens when exchange rates increase?</h3>

When a nation's exchange rate increases, it means the country's currency is now stronger and can buy more goods.

This means that the country will be able to import more goods for the same amount of money because that amount of money is now more valuable.

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3 0
2 years ago
The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are
Vinil7 [7]

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha,  we need to do the following calculations

The interest amount  is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

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3 years ago
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