Answer:
Option D, T Bonds and Eurodollars
, is the right answer.
Explanation:
Option D is correct because the future contract or interest rate future is the instruments that pay or offer the interest. However, the contract is an agreement on which buyer and seller are agreed for the future delivery of any interest that the asset bears. However, this contract gives the offer to the buyer and seller to lock the price of the asset that bears the interest in a future date. Moreover, this instrument is not a market traded instrument, these are the instrument used for a cash settlement. Thus, the same can be seen with option D. thus it is correct.
Answer:
$500
Explanation:
Data given in the question
Tax basis = $400
Fair market value = $500
Under section 351, the fair market value = $350
Liability on the property transferred = $150
So, by considering the above information the amount realized in the exchange is
= Fair market value under section 351 + liability on the property transferred
= $350 + $150
= $500
Answer:
$1040.56
Explanation:
A bond is debt instrument issued by a borrower which promises to pay the holder regular interest for the holding period and the terminal value at the end of the period.
According to the discounted cash flow model, the value of an asset is the present value of the future cash flows arising from the assets discounted at the required rate of return.
Present value is the worth today of an amount expected in the future.The process of calculating the present value is called discounting
To calculate the price of this bond, we shall discount the future cash flows using the required return of 8% per annum, which is the same as 4% per six-month
Interest payment per 6 month = (9% × $1000)/2= $45
PV of interest payment = 45 × (1- (1.04)^(-2×5))/0.04)= 364.995
PV of redemption value = 1000 × 1.04^(-2× 5) = <u>675.56</u>
Price of the bond 1<u>040.56</u>
A consolidation loan is intended to help consumers who have an unhealthy credit situation caused by overusing their credit. Thus the correct option is D.
<h3>What is a loan?</h3>
An amount given by any financial institution to any individual in advance on a certain rate of interest that they need to repay during the given time is called a loan.
A consolidation loan is meant to assist individuals with credit problems brought on by excessive credit use. A debt reduction approach known as a debt consolidation loan is taking out a new loan to settle a number of bills.
Therefore, option D is appropriate.
Learn more about the consolidation loan, here:
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The complete question is probably
A _____ loan is intended to help consumers who have an unhealthy credit situation caused by overusing their credit.
a. personal
b. single-payment
c. buy-down
d. consolidation
e. standard
The feature of the insurance contract that is being described above is the aleatory contract. It is the type of contact where the individual that has been involved can't handle or control the event that could happen to him or her. It is a way of having uncertain events happening in the individual such as death or natural disasters that she or he could face.
