Answer:
$1,115.58
Explanation:
Calculation to determine how much should you be willing to pay for this bond
Using this formula
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Where,
Par value= $1,000
Cupon= $35
Time= 10*4= 40 quarters
Rate= 0.12/4= 0.03
Let plug in the formula
Bond Price= 35*{[1 - (1.03^-40)] / 0.03} + [1,000/(1.03^40)]
Bond Price= 809.02 + 306.56
Bond Price= $1,115.58
Therefore how much should you be willing to pay for this bond is $1,115.58
Answer:
a. $2,465.82
b. $3,539.68
c. Yes, we should
Explanation:
Annual cost to maintain old forklift is $5,000
Equivalent Annual Cost (EAC) of new forklift = (Asset price x discount rate)/(1-(1+discount rate)-n), in which n is the number of year for usage of this forklift?
If discount rate is 4% per year, the EAC of new forklift is $2,465.82
= ($20,000x4%)/(1-(1+4%)-10)
If discount rate is 12% per year, the EAC of new forklift is $3,539.68
= ($20,000x12%)/(1-(1+12%)-10)
We should replace because with such above discount rate, the old forklift is more costly than the new one
In pouches duh silly goose lol
Answer:
What is a minimum balance?
D. The smallest amount of money you can keep in a bank account
Explanation:
For bank accounts, the minimum balance is the minimum dollar amount that a customer must have in an account to receive some service benefit, such as keeping the account open or receiving interest
