Answer:
824.28
Explanation:
Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:
Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8
Putting all the number together, we have
Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8
= 824.28
Answer: D
Explanation: Interest cost reflects the change in the APBO throughout the period which arise simply from a passage in time.
It is usually equal to the APBO at the start of the period times, the supposed discount rate which is used to regulate present value of future cash outflows currently expected or needed to satisfy the commitment or duty.
Answer:
(C) 18,844.47
Explanation:
You need to use the Inflation-Adjusted Return formula:
So, basically you need to calculate it year by year. You can use excel, or an online calculator. I will attached you a link where you can find a good one. But this would be the process
And so on...
Keep in mind that I did not write all decimals. You need to consider them if you want an exact answer
Online calculator:
https://www.ameriprise.com/research-market-insights/financial-calculators/savings-taxes-inflation/
Answer:
The transistor was invented on June 30th 1948 by Bell telephone laboratories
