Answer:
Value of the bond = $862.013
Explanation:
The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).
Value of Bond = PV of interest + PV of RV
The value of the bond can be worked out as follows:
Step 1
<em>Calculate the PV of Interest payment
</em>
Present value of the interest payment
PV = Interest payment × (1- (1+r)^(-n))/r
Interest payment = $40
PV = 40 × (1 - (1.05)^(-12×2)/0.05)
= 40 × 13.7986
= 551.945
Step 2
<em>PV of redemption Value
</em>
PV of RV = RV × (1+r)^(-n)
= 1000 × (1.05)^(-12×2)
= 310.067
Step 3
<em>Calculate Value of the bond </em>
= 551.94567 + 310.067
=862.01
Value of the bond = $862.013
Answer:
less volatile the price of a security, the wider the bid-asked spread.
Explanation:
From the answers listed in the question the one that would be considered false would be that the less volatile the price of a security, the wider the bid-asked spread. This is because the bid-asked spread usually depends on the liquidity of the asset, when the asset has a large enough liquidity which causes the volatility to be low the bid-asked spread becomes very narrow since there is not much demand for buyers willing to pay higher prices for the asset in question. The opposite occurs if an asset is very popular and volatility is high which creates a much wider bid-asked spread.
Answer: Social learning
Explanation:
Isabella is involved in social learning with her learning group, in preparation for her mini-presentation on an advertisement campaign.
Social learning involves a form of learning done in groups where ideas are exchanged and learning is enhanced.
Answer:
$33,840
Explanation:
The computation of the depreciation per units or tons under the units-of-production method is shown below:
= (Original cost - residual value) ÷ (estimated tons)
= ($158,400 - $0) ÷ (22,000 tons)
= ($158,400) ÷ (22,000 tons)
= $7.20 per tons
Now for the year 2021, it would be
= Tons during 2021 × depreciation per tons
= 4,700 × $7.20 per tons
= $33,840
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