Answer:
The Price of Bond today = $997.07
Explanation:
Semi annual coupons = $1000 * 5% / 2
Semi annual coupons = $25
As 9 months is already over in the two year bond, the coupons are payable
3 months from now, 9 months from now and 15 months from now.
The present value of all these coupons and the principal should be equal to the price of the bond today. In case of continuous compounding, the formula for Present Value of any future Cash flow C is C*e^(-r*t).
Price of Bond = $25 * e^(-0.06*3/12) + 25*e^(-.061*9/12)+ 1025*e(-0.062*15/12)
Using the value of e as 2.71828
Price of Bond = $25 * 2.71828^(-0.06*3/12) + 25*2.71828^(-.061*9/12)+ 1025*2.71828(-0.062*15/12)
Price of Bond = $
25 * 2.71828 ^-0.015 + 25*2.71828^-0.04575 + 1025*2.71828^-0.0775
Price of Bond = $
25 * 1/2.71828^0.015 + 25*1/2.71828^0.04575 + 1025*1/2.71828^0.0775
Price of Bond = $997.07
Answer:
A. Cash, Salary payable, and Retained earnings
Explanation:
The post-closing trial balance is prepared after recording the closing entries with respect to all revenues earned, all expenses incurred, and the cash dividend
.
It should be always matched and equal that means the total of the debit column and the total of credit column is equaled and zero.
So, the most appropriate option is A.
It include warning individuals not to enter the area where the active shooter may be
In real life, those who haven't do any necessary training for this kind of emergency situation can only be a hindrance for the actual help enforcement. The best thing we can do is to warn other people not to enter the dangerous area
Answer:
PV= $332,528.56
Explanation:
Giving the following information:
Future value= $500,000
Number of periods= 7 years
Discount rate= 6% compounded annually
<u>To calculate the present value, we need to use the following formula:</u>
<u></u>
PV= FV/(1+i)^n
PV= 500,000 / (1.06^7)
PV= $332,528.56
Answer:
B. Are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.
Explanation:
Fractional reserves are when a certain fraction of total deposits with the banks are reserved and the remaining amounts over and above of these reserves are loaned out and made into money supply.
Bank panics are a risk of such a system as depending on public confidence level on banks, the public may crowd out the bank and people wish to withdraw their deposits, in this case banks only have a certain amount of reserve deposits and not all the money for all the depositors.
These runs on the bank are unlikely if the banking system is prudent and abides by central banking regulations.
Hope that helps.
