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Rzqust [24]
3 years ago
11

have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If you require a 7 percent return

, what price would you be willing to pay for a Vanguard bond
Business
1 answer:
ololo11 [35]3 years ago
6 0

Answer:

I will be willing to pay $1,106 for a vanguard bond.

Explanation:

Coupon payment = Par value x Coupon rate

Coupon payment = $1,000 x 8%

Coupon payment = = $80

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

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

Price of the Bond =$80 x [ ( 1 - ( 1 + 7% )^-20 ) / 7% ] + [ $1,000 / ( 1 + 7% )^20 ]

Price of the Bond = $80 x [ ( 1 - ( 1.07 )^-20 ) / 0.07 ] + [ $1,000 / ( 1.07 )^20 ]

Price of the Bond = $848 + $258

Price of the Bond = $1,106

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In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) deducti
OLEGan [10]

Answer: kindly check your questions, I don't think it's complete.

For the first independent case as you have given in the question. Here is the answer below:

1) Ted paid $90 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned-------

Answer

Deductible for AGI $0

Deductible from AGI $90

Not deductible $0

Deduction from AGI (investment expense )

------For the remaining independent cases as you omitted in the question will be seen below with answers

2.Tyler paid $177 for minor repairs to the fence at a rental house he owned

Answer: Deductible for AGI $177

Deductible from AGI $0

Not deductible $0

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And Rental expense.

3)Timmy paid $585 for health insurance premiums this year (not through an exchange). Timmy is employed full-time and his employer paid the remaining premiums as a qualified fringe benefit.

. Answer---

Deductible for AGI $0

Deductible from AGI $585

Not deductible $0

The health insurance premium is from AGI,

Health itemized deduction which is also subjected to an AGI floor limitation.

4)Tess paid $2,090 of state income taxes on her consulting income. (W-2)

Answer---Deductible for AGI $0

Deductible from AGI $2,090

Not deductible $0

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4 0
3 years ago
The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are prese
tamaranim1 [39]

Answer:

The answer is attached;

Explanation:

Download xlsx
5 0
3 years ago
What type of product modification is likely to make the greatest impact on a food product?
Elina [12.6K]

Answer: Aesthetic

Explanation:

The type of product modification that is likely to make the greatest impact on a food product is aesthetic.

Product Modification simply means the improvement of an existing products in such a way that necessary changes are made to the product's nature, size, color, characteristics, nature, packing etc. in order to meet consumers demand. Aesthetic in food products will help the product stand out and beautify it.

7 0
3 years ago
Whiplash Ltd. makes a single product and only one type of direct material is used to make this product. Whiplash uses a standard
RSB [31]

Answer:

$2 per gram.

Explanation:

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(37,830 × standard price) - (37,830 × 2.2 ) =$3,744.

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4 0
3 years ago
Read 2 more answers
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 27,000 shares authorized, 13,2
Ilia_Sergeevich [38]

Dr Retained Earnings  $5400

Cr Common Dividends Payable $5400

is the journal entry.

<h3>What is outstanding share?</h3>

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On a any company's balance sheet, Capital Stock is the main heading in which outstanding shares are listed.

Thus, the journal entry has passed above.

For more details about outstanding share, click here:

brainly.com/question/18568835

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