Answer:
Price of bond = $ 924.50
Explanation:
<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV). </em>
Value of Bond = PV of interest + PV of RV
The price of the bond can be worked out as follows:
Step 1
PV of interest payments
annul interest payment = 6.4 % × 1,000 = 64
Annual yield = 7.5%
Total period to maturity (in years) =10
PV of interest =
64 × (1- (1.075)^(-10)/)/0.075= 439.30
Step 2
PV of Redemption Value
= 1,000× (1.075)^(-10) =
485.19
Step 3
Price of bond
439.30 + 485.19 =$924.49
Price of bond = $ 924.50
The answer to this question is letter D. <span>The closing costs cover titles, taxes, and realtor costs. After closing, the only monetary obligation is to the lending party.
</span>Closing costs<span> are fees paid at the </span>closing<span> of a </span>real estate transaction<span>. It is called the </span>closing<span> when the </span>title<span> to the property is </span>conveyed<span> to the buyer. Closing costs then are incurred by the buyer or the seller, either of the two.</span>
Answer:
Monthly Interest rate = 0.475%
EAR = 5.85%
Explanation:
a.
APR = 5.7%
Monthly Interest rate = APR / n
Monthly Interest rate = 5.7% / 12
Monthly Interest rate = 0.475%
b.
APR = 5.7%
m = 12
EAR = [ ( 1 + (APR / m))^m] - 1
EAR = [( 1 + (0.057 / 12))^12] - 1
EAR = [( 1 + 0.00475 )^12] - 1
EAR = [( 1.00475 )^12] - 1
EAR = 1.0585 - 1
EAR = 0.0585
EAR = 5.85%
True monthly rate of interest is 0.475%
EAR is 5.85%
Answer: $744,000
Explanation:
The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:
First, we have to calculate the amortization recorded up to 2019. This will be:
= (1,240,000 / 10) x 2
= 248,000
The we calculate the amortization to be recognized in 2020. This will be:
= (1,240,000 – 248,000) / 4
= 248,000
The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:
= 1240000 - 248000 - 248000
= $744,000
Answer:
In the simple Keynesian model, inflation becomes a problem only if demand increases at full employment.
Explanation:
In the Keynesian view, price inflation is mainly the result of relative changes in supply and demand, which lead to price changes. Changes in the money supply have no direct influence here. According to this school, the money supply is the result of money creation by the banking system; but this plays only a limited role in the process.
In this vision, a distinction is made between:
-
Demand inflation: Inflation occurs when the aggregated demand for goods and services increases, with an initially constant supply.
-Cost inflation: Inflation occurs if there is a sudden decrease in supply when demand remains the same.
