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yuradex [85]
3 years ago
5

If the rate of inflation remains the same at 2% during the 5-year life of a TIPS bond with a coupon of 3%, what would the nomina

l value of the bond be at maturity to the nearest dollar?[A] $1,000[B] $1,060[C] $1,104[D] $1,160
Business
1 answer:
Vaselesa [24]3 years ago
4 0

Answer:

C $1,104

Explanation:

TIPS are the form of bonds which are specially designed for the purpose to protect the investors against the inflation.

The principal value of the bond in case of TIPS is adjusted for yearly inflation.

Based on the above discussion the value of TIPS bond can be calculated using the below formula:

Value of bond at maturity=Principal amount (1+inflation rate)^5

                                         =1,000(1+2%)^5

                                         =1,104

 So the answer is C $1,104

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1 year ago
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
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If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the: a marginal factor cost is $6.

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7 0
2 years ago
All of the following are reasons for a company to repurchase its previously issued stock, except:
gladu [14]

Answer:

The correct answer is option d. to increase the shares outstanding.

Explanation:

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But the company certainly will not repurchase its previously purchased stocks  to increase the shares outstanding.

I hope the answer is helpful.

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4 0
3 years ago
Esquire Comic Book Company had income before tax of $1,000,000 in 2016 before considering the following material items:
Ganezh [65]

Answer:

                    Esquire Comic Book Company

                               Income Statement

               For the Year Ended December 31, 2016

Operating income                                                $1,000,000

<u>Restructuring costs                                                 ($80,000)</u>

Income from continuing operations b/ Taxes      $920,000

<u>Income tax expense                                              ($368,000)</u>

Income from continuing operations                                        $552,000

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Income from discontinued operations                                     $90,000

<u>Net income                                                                               $642,000</u>

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

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