Answer:
Bond price= $1,210.4
Explanation:
Giving the following information:
Coupon rate= 0.079/2= 0.0395
YTM= 0.056/2= 0.028
Face value= $1,000
n= 13*2= 26
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond price= 39.5*{[1 - (1.028^-26)]/0.028} + [1,000 / 1.028^26]
Bond price= 722.67 + 487.73
Bond price= $1,210.4
The general conclusions that can be drawn about Eli's situation are:
- He may still be covered in some cases.
- He faces more risk than insured people do.
- He may have to take precautions but many factors are beyond his control.
- Not being able to afford insurance was a factor in him not being covered.
<h3>What is insurance?</h3>
Insurance is a coverage in case of unforeseen circumstance or unexpected situation.
Based on Eli situation he may likely be covered in some cases even though he is not insure but he is at risk more than insurance policy holders.
Therefore he faces more risk than insured people do.
Learn more Eli situation here:brainly.com/question/15638088
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True Because they have preperations for your tests
Answer:
$71,400
Explanation:
Average cost method uses a simple average of all items as follows:
Total cost = (15000 x 8) + (15000x 10) + (20000 X 12) = $510,000
Total inventory = 15000+15000+20000 =50,000
Average cost = total cost / total inventory = 510000/50000
= $10.2
Cost of ending inventory = 7000 units x $10.2 = $71400
