Answer:
if YTM at 4% price : $2,902.1237
if YTM at 8% price : $1,788.0448
The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value
Explanation:
the market price of the bond will be the present value of coupo payment and maturity:
C 150.000
time 30
rate 0.04
PV $2,593.8050
Maturity 1,000.00
time 30.00
rate 0.04
PV 308.32
PV c $2,593.8050
PV m $308.3187
Total $2,902.1237
No we repeat the process with the yield at 8%
C 150.000
time 30
rate 0.08
PV $1,688.6675
Maturity 1,000.00
time 30.00
rate 0.08
PV 99.38
PV c $1,688.6675
PV m $99.3773
Total $1,788.0448
Answer:
Subtract vacancy and credit costs from potential gross income
Explanation:
Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.
It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.
EGI is used to determine the value of a rental property and the cash that the property generates.
Answer:
A farmer is the one that owns the cattle and is ready to sell it on the market demand, while the meatpacker is the one who buys the product and sells it in different parts to the end consumers.
Since they both are using the commodity market to reduce the risk, the farmer will be the one who agrees to sell the cattle in the future at a fixed rate, while the meatpacker will be the one who agrees to buy the cattle in the future at a specified price fixed by him.
Hope this helps. ThankYou.
Answer:
Option (a) is correct.
Explanation:
Here, shoes are normal goods as there is a positive relationship between the income level of the consumer and the quantity demanded for shoes. It can be seen that as the income of the consumer increases from $19,000 to $21,000 then as a result the quantity of pairs of shoes demanded increases from 9 to 11 pairs. Normal goods are generally have positive income elasticity of demand.
Therefore, the shoes are normal goods in this case.
Answer:
Dr Organization costs ($12,000 + $3,000) 15,000
Dr Patent ($20,000 + $2,000) 22,000
Dr Equipment 30,000
Dr Preopening expenses 40,000
Cr Cash 107,000
Explanation:
Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.
Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.
