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Monica [59]
3 years ago
12

Consider a bond that costs $1,000 and pays an $80 interest payment each year.

Business
1 answer:
Anna007 [38]3 years ago
7 0

Answer:

The interest rate for this bond is 8% per annum.

Explanation:

Given that,

a bond that costs $1,000 and pays an $80 interest each year.

To find the rate of interest, we use the following formula is

I=Prt

Here P = principal= $1,000

I=interest= $80

t=time= 1 year

∴80 = 1000×r×1

\Rightarrow r=\frac{80}{1000}

⇒r = 0.080

⇒r= 8%

The yield for this bond is 8% per annum.

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Carl purchased an apartment complex for $2.6 million on March 17 of year 1. of the purchase price, $1,050,000 was attributable t
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Answer:

total depreciation year 1 = $71,358

total depreciation year 2 = $80,358

Explanation:

Land cannot be depreciated, therefore Carl can only depreciate the building's cost = $2,600,000 - $1,050,000 = $1,550,000

Rental property can be depreciated at a fixed rate of 3.636% per year during 27.5 years. Depreciation per year for the building = $56,358

Furniture on rental property can be depreciated on a 5 year basis using a MACRS table and half year convention:

depreciation year 1 = 20% x $75,000 = $15,000

depreciation year 2 = 32% x $75,000 = $24,000

total depreciation year 1 = $56,358 + $15,000 = $71,358

total depreciation year 2 = $56,358 + $24,000 = $80,358

8 0
3 years ago
Doing more with less in terms of resources invested in business, and, where possible, controlling the resources without owning t
mixer [17]
The answer is : A . Gazelle
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2 years ago
A small grocery store sells fresh produce, which it obtains from a local farmer. During the strawberry season, demand for fresh
nasty-shy [4]

Answer:

(a)The implied cost of shortage per quart is = $4.75

(b) This could be viewed as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.

Explanation:

Solution

Given that:

Mean =μ = 40

Standard deviation =σ = 6

Excess cost= Ce =$0.35

The amount ordered =S₀= 49

Thus

Z =(49 -40)/6

=1.5

Now

From the Table Z, we have the service level which is,

P(X <49 ) = P(Z < 1.5)

= 0.9332

Since we know that,

Service level (SL) =Cs/Cs+Ce

So,

0,9332 =Cs/Cs+0.35

Thus

0.9332Cs + 0.35* 0.9332 =Cs

0.0668Cs =0.32662

Hence

Cs = $4.75

(a) The implied cost of shortage per quart is = $4.75

(b) Therefore,this could be regarded as reasonable figure, because is (approximately) equal to the loss per quart of strawberry.

5 0
3 years ago
which costs of inflation could the government reduce without reducing inflation? a. arbitrary redistributions of wealth b. shoel
Ilya [14]

Answer:

A is the correct answer.

Explanation:

Inflation causes an arbitrary redistribution of wealth and income. Unexpected inflation is responsible for it. The redistribution of income is caused because the wages and salaries increase rapidly the prices.  and other wages and salaries slowly than the price level. The increase in the prices of some assets more rapidly than the price level while the asset prices increase slower than the price level causes the redistribution.

4 0
3 years ago
You are out to eat with your friends.
kompoz [17]

Answer:

The top would be $15.72

Explanation:

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3 0
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