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irinina [24]
3 years ago
6

Bond outstanding with a coupon rate of 5.66 percent and semi-annual payments. The bond has a yield to maturity of 6.3 percent, a

par value of $2,000, and matures in 16 years. What is the quoted price of the bond?
Business
1 answer:
vagabundo [1.1K]3 years ago
3 0

Answer

Price of bond = 17.96825

Explanation:

Bond price = ∑(C / (1+YTM)^{n} )+  P /(1+i)^{n}

where

            n = no. of years

            C = Coupon payments

            YTM = interest rate or required yield

             P = Par Value of the bond

put values in above equation

  price = (5.66%/2) × 2000 × (0.31746) + ( 2000 ÷ 4.595×10^{18})

            = 17.96825

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Nathan and Diana are married and have three married children and seven minor grandchildren. For tax year 2020, what is the maxim
Luba_88 [7]

Answer:

Maximum amount that can be given to family (including the sons- and daughters-in-law) without using unified transfer tax credit is $390,000.

Explanation:

Given the data in the question;

Nathan and Diana are married and they have 3 married children, meaning Nathan and Diana also have 3 daughters/sons in law married to their children. In addition, they have 7 minor grand children.

Number of donees will be ⇒ 3 + 3 + 7 = 13

Now, we know that; The annual gift tax exclusion for 2019-2020 is $15,000 per donee or individual for every tax payer while that of married couple is $30,000.

Meaning Nathan and Diana can give $30,000as a gift to each of their family members without using any of their unified transfer tax credit.

Hence,

Maximum amount that can be given to family (including the sons- and daughters-in-law) without using unified transfer tax credit will be;

⇒ 13 × $30,000

= $390,000.

6 0
2 years ago
Assume that the interest rate on borrowings in south korea is 1 percent, but the interest rate on deposits in british banks is 7
Vikentia [17]

<u>The trader involved is in carry trade. </u>

<u> </u>

Further Explanation:

Carry Trade: It is defined as a strategy that is used in trading which involves borrowing money at a lower rate of interest and investing in an asset that gives a higher rate of return. It involves borrowing money in a currency that is having a low rate of interest and convert the borrowed sum of money into other currency. The amount is then placed in a deposit in the currency that offers a high-interest rate. It invests in the assets like bonds, stocks, real estate, or commodities that are designated in the other currency.

The two risks that are involved in carry trade are the risk of decline in the price of the assets in which investment is made and exchange risk. This is common in the Foreign exchange market.

<u> Therefore, the trader is involved in carry trade. </u>

<u> </u>

Learn more:

1. Share of medical costs in GDP of US

brainly.com/question/6002864

2. Minimum wage rate

brainly.com/question/8729856

3. Basic right while investigating

brainly.com/question/10185359

Answer details:

Grade: High School

Subject: Economics

Chapter: Types of trade

 

Keywords: the interest rate, South Korea, 1 percent, deposits in British banks, 7 percent, a trader, 1 million South Korean won, British pounds, deposits in a British bank, carry trade, trade involved in, FX market.

5 0
3 years ago
Ferdinand’s employer will match 50% of his $250 monthly contributions to his 401(k). This means that Ferdinand’s employer will p
irina [24]

Answer and Explanation:

The computation of the given question is shown below:-

Total Contributions = Monthly contribution + Amount invested in Ferdinand’s 401(k)

= $250 + $125

= $375  

1. Future Value = PMT [((1 + r)n - 1) ÷ r

Future value = 375 × ((1 + 0.03 ÷ 12) × 12 × 40 - 1) ÷ (0.03 ÷ 12)

= $347,272

2. Ferdinand deposit = Given Amount × Total number of months in a year × Number of years

= $250 × 12 Months × 40 Years

= $120,000

3. The Amount put in by the employer = 50% of $250 ×Total number of months in a year × Number of years

= $125 × 12 Months × 40 Years

= $60,000

4. Interest = Future value - Ferdinand deposit - The Amount put in by the employer

= $347,272 - $120,000 - $60,000

= $167,272

We simply applied the above formulas

4 0
3 years ago
Another term for the cash-and-carry purchasing procedure is: Question 2 options: a) stockless purchasing b) forward buying c) fi
satela [25.4K]

Answer:

Will call purchasing

Explanation:

Cash and carry also known as "will call purchasing" or "carry trade" is a sales strategy or method of purchase in which a customer must pay for an item immediately and must take the item with them. It eradicates all forms of credit sales.

Cash and Carry involves paying for an item and taking it along with you. There is no space for future delivery and it doesn't include delivery cost in the price of an item.

Pickup can't be delayed to a later date.

5 0
3 years ago
Which of the following groups are text effects in word
inn [45]

Answer:

salary

employement

Explanation:

4 0
3 years ago
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