G90.523 is the answer I think
Answer:<em>9.5354% or 9.6%</em>
Explanation:
<em>PMT = coupon (interest) payment = 12.2 % * $1,000 = $120</em>
<em>Let t = time left until bond is called = 10 years
</em>
<em>Let F be the face value = $ 1,100 ($ 1,000 + $ 100 (Call premium))</em>
<em>Let the Current bond price = 110 % x 1,000 = $1,100</em>
<em>Now,</em>
<em>The bond price is = PMT x 1-( 1 + r )⁻t / r + F/(1 + r )t</em>
<em>Therefore,</em>
<em>1100 = 100 x 1 - (1 + r)⁻¹⁰/r + 1100/(1 + r)¹⁰</em>
<em>Using the trial and error method,</em>
<em>r= 9.5354%</em>
<em>Then the yield to call (YTC) = 9.5354</em>
9.5354%
Bob and mary are financing $180,500 for a new home. their lender will approve an interest rate of 5% if bob and mary pay two discount points at closing. Cost them is $3,610.
A discount point is 1% of the loan amount. Bob and Mary are paying two points (or 2% of $180,500), which is $3,610.
What is discount points?
- Discount points are a shape of paid ahead of time intrigued that contract borrowers can buy to lower the intrigued rate on their consequent month to month payments.
- Discount points are a one-time expense, paid up front either when a contract is to begin with orchestrated or amid a refinance.
- Each markdown point for the most part costs 1% of the overall credit and brings down the loan’s intrigued rate by one-eighth to one-quarter of a percent.
- Points don’t continuously got to be paid out of the buyer’s stash; they can some of the time be rolled into the advance adjust or paid by the vender.
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Answer:
. balance sheet.
Explanation:
Liabilities are debts a business or an individual owe to other parties. It is money owed to creditors. Liabilities are financial obligations that an enterprise incur in the course of doing business. The obligations or debts have to been paid; hence they should be appropriately indicated in the financial records.
Liabilities are recorded in the balance sheet statement. A balance sheet indicates the financial status of a company by showing its assets and how they are financed. The balance sheet is prepared by followed the equation of assets equals liabilities plus equity. It lists the assets on one right side, while liabilities and equity appear on the left.
Economic profits (or loss) is defined as the difference between revenues and the opportunity cost forgone. In the current case, the entrepreneur opted to start a business rather than being employed.
Therefore;
Economic profit = Revenues - Opportunity cost
In this problem;
Revenues = $300,000 - $150,000 - $25,000 - $25,000 = $100,000
Opportunity cost = $75,000
Therefore;
Economic profit = $100,000 - $75,000 = $25,000
