Answer:
Zero-cupon bond= $612.52
Explanation:
Giving the following information:
Face value= $1,000
Number of periods= 5 years
Interest rate= 10.3% = 0.103
<u>To calculate the price of the bond, we need to use the following formula:</u>
<u></u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000 / (1.103^5)]
Zero-cupon bond= $612.52
Answer: none is correct.
Explanation:
Given data:
2 years ago = $500
1 year ago = $300
Today = $800
Solution:
PV ( presents value )
= p * r * t
Where:
p = principal ( $500, $300, $800 )
r = rate = 4%
t = duration (time) ( 2years, 1 year and present ).
= ( $500* 2 * 0.04 ) + ( $300 * 1 * 0.04 ) + $800
= $40 + $12 + $800
= $852
PV = $500 + $300 + $852
= $1,652.
Answer:
The correct answer is that the valuation would decrease total assets and stockholders’ equity by $101.00
Explanation:
Item Cost Market price Impact
Quantity
1 220 $ 4.40 $ 4.60 no impact as cost is lower
2 130 $ 6.20 $ 6.00 ($6.20-$6.00)*
130=$26
3 100 $ 10.00 $ 9.25 ($10-$9.25)*100 =$75
4 25 $ 20.50 $ 25.00 No impact as cost is lower
The total reduction in the value of inventory as a result of adopting the lower of cost or market price valuation is $101 ($75+$26),hence decreases total assets by $101 and the stockholders' equity(retained earnings which is a component of stockholders' equity ) by the same amount
These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return.
True Some no activist believe in a predetermined money growth rate