Answer:
The market price of a $1,000 face value bond is $944.
Explanation:
Market Value of Bond is calculated by following formula.
Coupon Payment = $1000 x 8% = $80
r = YTM = 8.66% = 0.0866
Face value = $1,000
n = number of periods = 16 yeasr
P = C [ (1 - ( 1 + r )^-n ) / r ] + [ F x ( 1 + r )^-n]
P = $80 [ (1 - ( 1 + 0.0866 )^-16 ) / 0.0866 ] + [ $1,000 x ( 1 + 0.0866 )^-16]
P = $80 [ (1 - ( 1 + 0.0866 )^-16 ) / 0.0866 ] + [ $1,000 x ( 1 + 0.0866 )^-16]
P = $679.19 + $264.78
P = $943.97
Answer:
O administering compensation
Explanation:
The human resources department or the HR is the department responsible for employees' management in an organization. Employees are the human resources in the organization. The HR's main task is to attract, train, and retain the best employees for the company.
Other functions of the Human resources department include
- Recruiting and placing the right person for the right position.
- Managing the employee compensation scheme
- Ensure compliance with labor laws
- Training and building employee's capacity
- Creating and maintaining a good employer-employee relationship.
Answer:
I believe that this problem is about determining the equivalent annual cost of leasing option A:
lease cost year 1 = $36.25/sf
lease cost year 1 = $37.25/sf
lease cost year 1 = $38.25/sf
lease cost year 1 = $39.25/sf
lease cost year 1 = $40.25/sf
there are two ways to calculate this solution and the answer will vary significantly depending on which assumption you take:
a) lease payments are paid at the beginning of the year
the PV = $36.25 + $37.25/1.06 + $38.25/1.06² + $39.25/1.06³ +$40.25/1.06⁴ = $170.27
equivalent annual cost = ($170.27 x 6%) / [1 − (1 + 6%)⁻⁵
] = $10.2162 / 0.2527 = $40.42/sf
b) lease payments are paid at the end of the year
the PV = $36.25/1.06 + $37.25/1.06² + $38.25/1.06³ + $39.25/1.06⁴ +$40.25/1.06⁵ = $160.63
equivalent annual cost = ($160.63 x 6%) / [1 − (1 + 6%)⁻⁵
] = $9.6378 / 0.2527 = $38.13/sf
Answer:
C. $6,000; Increase expenses, increase liabilities
Explanation:
The computation is shown below:
= Borrowed amount × rate of interest × given months ÷ Total months
= $400,000 × 6% × 3 months ÷ 12 months
= $6,000
So this $6,000 represent an increase in liabilities and increase in expenses
hence, the correct option is c.
