Answer:
$441,495
Explanation:
Since the information is incomplete, I looked for the missing part and found the attached information.
the current yield of a 1.5 years zero coupon bond = (100 / 89.9)¹/¹°⁵ - 1 = 0.0736 = 7.36%
the current yield of a 6 months zero coupon bond = (100 / 97.087)¹/⁰°⁵ - 1 = 0.0609 = 6.09%
now to calculate the future interest rate:
(1.0736²/1.0609) - 1 = 0.0865 = 8.65%
since we are told to determine the price of the bond:
(100/P)¹/¹°⁵ - 1 = 0.0865
(100/P)¹/¹°⁵ = 1.0865
100/P = 1.0865¹°⁵
100/P = 1.1325
100/1.1325 = P
P = 88.299
the expected price of the bond = 88.299% x $500,000 = $441,495
Answer:
1. $50 million
2. $50 million
3. In a closed economy, national savings equals investment
Explanation:
For a closed economy, the formula for calculating GDP = C + I + G
Where C - Consumption
I - investment
G - Government Spending
To find investment ,
750 = 300 + I + 400
I = $ 50 million
National savings = private saving + Government saving
Private saving = Y − T − C
750 - 300 - 250 = $200 million
Public savings = T - G
250 - 400 = $-150 million
National savings = $200 - $ 150 million = $ 50 million
Nb - All numerical values are in $ millions
<span>The demand for airline pilots results from the demand for air travel. This fact is an example of the derived demand for labor. Derived demand describes a </span>situation in which the demand of something causes demand for something else. Due to the growing demand of travel by air, the need for pilots grows as well.
Answer:
It is not formally recorded in the accounting record of the parent company if the subsidiary retains its incorporation.
Explanation:
IFRS 3 explains business acquisition as the taking over the control of an existing business by another with the acquired assets measured at the fair value at the date of transaction.
The combining of interest method has ceased to be considered by GAAP since 2001.
That means a subsidiary has to lose its incorporation for full acquisition or rather treated as an investment by the acquiring company.
The answer to this question is corporate profits
Corporate profits refer to the economic indicator that calculates the net income of companies within a country.
Net income derived after we subtracting the amount of expenses from the total revenue, wihch indicates how much capital the company truly earn from its operation.
