Answer:
=$ 4400
Explanation:
Under the Macrs depreciation schedule, motor vehicles as assets have a useful life of 5 years. In the first year, the deprecation rate id 20%, followed by 32% in the second year.
For cork oak corporation: the value of the motor vehicle is 22,000
Date of purchase 2018, years in depreciation: 1
Depreciation: = 20/100 x 22 000
=$ 4400
Answer:
(b) 1440
Explanation:
As the coupon rate of 8% is greater than the yield to maturity (YTM) of 6% annually, the bond is selling at a premium. Hence, the bond will be called at the earliest i.e. 15 years.
Coupon = Call Price * Semi-annual coupon rate = X * [0.08 / 2] = X * 0.04
Yield to call = 6% annually = 3% semi-annually
Time = 15 years * 2 = 30
We know that,
Current Price of bond = Coupon * [1 - (1 + YTC)-call date] / YTC + Call Price / (1 + YTC)call date
- 1,722.25 = [X * 0.04] * [1 - (1 + 0.03)-30] / 0.03 + [X / (1 + 0.03)30]
- 1,722.25 = [X * 0.04] * 19.60 + [X * 0.41]
- 1,722.25 = X * [(0.04 * 19.60) + 0.41]
- X = 1,722.25 / 1.194
-
X=$ 1,442.42 \approx $ 1,440
Answer:
The answer is below.
Explanation:
The z score is a used in statistics to determine by how many standard deviations the raw score is above or below the mean. The z score is given by:
a) Given that n = 100, μ = 2000, σ = 18
For x < 1995 millimeters:
From the normal distribution table, P(x < 1995) = P(z < -2.78) = 0.0027
b) P(z > z*) = 10% = 0.1
P(z < z*) = 1 - 0.1 = 0.9
z* = 1.28
From the normal distribution table, P(z < z
Answer:
Explanation:
In the former case that is investment in security that pays interest of 8% per year for the next 2 years , there is provision of fixed interest rate . That means one can be assured of interest rate of 8 % for two years but he can not get benefit of market fluctuation if interest rate if it rises above 8 % after one year .
In case of investment in security that matures in 1 year but pays only 6% interest , one can take the benefit of market fluctuation if interest rate rises above 8 % . So if there is likelihood that interest rate can rise above 8 % in future , one should invest in 6% security for one year and reinvest it after one year , in the same security or in other security which fetches higher rate of interest .
Apart from that , if there is a contingent liability of paying after one year , one can not go in for 2 year security as it will have to break prematurely , that will result in loss of interest .
So due to situation described above, one should prefer investment in one year security .
