Answer:
The answer is C.
Explanation:
The coupon payment is annual, meaning it is being paid once a year.
N(Number of years/Number of periods) = 40(20 x 2)
I/Y(Yield-To-Maturity) = ?
PMT(coupon payment) = $40[(80÷2/100) x $1,000]
FV(Future value/Par value) =$1,000
PV(present value or market value) = -828
Now to solve this, lets use a financial calculator (e.g Texas BA II plus)
N= 40; I/Y = ?; PMT = $40; FV = $1,000; CPT PV = -828
The cost of debt is 5%
Note that this is for semiannual. The annual cost of debt is therefore, 10%(5% x 2)
Go to the bathroom, get a glass of water and review you topics.
Answer:
The correct answer of this question is b-200$.
Explanation:
As per tax schedule if income from capital gain is less than 39,375$ 0% tax is charge lieved.
So on his income from capital gain that is 34,000 dollars no tax will be charge. However the remaining income is subject to income tax that is (36000-34000)= 2000 dollars. So Cason is liable to pay tax equals to 200$. (2000*10%)
As per tax law whose income is less than 9,750 dolars is liable to pay tax at the rate of 10%.
