Answer:
Calculate the dirty price.
Here, coupon interest is compounded semiannually. Hence, divide coupon rate by 2.
Dirty Price = Bond Clean Price + Accrued Interest
Dirty Price = Bond Clean Price +(Face Value X Coupon Rate/2 X Day Count/ Total Days
Dirty price = 1026 + (1000 x 6.6%/2 x 74/183)
Dirty price = $1,039.34
Answer:
At the rate of return of 18%, the purchase of the new machine is not convenient.
Explanation:
Giving the following information:
Simone Company is considering the purchase of a new machine costing $50,000. It is expected to save $9,000 cash per year for 10 years, has an estimated useful life of 10 years, and no salvage value. Management will not make any investment unless at least an 18% rate of return can be earned.
We need to find the net present value using the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
NPV= -50,000 + 9,000/1.18 + 9,000/1.18^2 + 9,000/1.18^3 + ... + 9,000/1.18^10
NPV= -9,553
At the rate of return of 18%, the purchase of the new machine is not convenient. It will produce a loss in value.
Answer:
Following is given the solution for given question.
I hope it will help you a lot!
Explanation:
Answer:
Social Security taxes definition. ... The Social Security tax is levied by the U.S. government on both the employee and the employer. In 2019 the Social Security portion of FICA (excluding Medicare) to be withheld from the first $132,900 of each employee's annual salary or wages is 6.2%.
Hope This Helps
It appears as though D is the correct answer
(Though (as a sub note) diversification of portfolios is a common method to reduce risk)
