Answer:
a. 1.8716%
b. $13,937.9955
Explanation:
The computation is shown below:
a. For accrued interest
= (Coupon rate ÷ 2) × (Before settlement days ÷ Total settlement days)
= (4.750% ÷ 2) × (145 days ÷ 145 days + 39 days)
= 2.3750% × 0.7880
= 1.8716%
b. Now the dirty price is
= Face value × (accrued interest percentage + current price quoted on the bond)
= $13,000 × (1.8716% + 105.34375%)
= $13,000 × 107.21535%
= $13,937.9955
By applying the above formulas we can get the accrued interest and the dirty price
Answer:
E) None of the above
Explanation:
Calculation to determine What is your profit from implementing this strategy
Profit={[($10,000/$1.62)*$2.95]*$.55}-$10,000
Profit =[( £6,172.84 *2.95) *$.55]-$10,000
Profit=( NZ$18,209.88 x $.55)-$10,000
Profit = $10,015.43-$10,000
Profit=$15.43
Therefore your profit from implementing this strategy is $15.43
Answer:
15.26%
Explanation:
Given:
Expected return = 15.1% = 0.151
Expected loss in recession = - 8% = - 0.08 [negative sign depicts loss]
Expected earning in a boom = 18% = 0.18
Probabilities of a recession = 2% = 0.02
Probabilities of a normal economy = 87% = 0.87
Probabilities of a boom = 11% = 0.11
Now,
Expected return = ∑ (Probability × Return)
or
0.151 = 0.02 × ( - 0.08) + 0.11 × 0.18 + 0.87 × Return on normal economy
or
0.151 = - 0.0016 + 0.0198 + 0.87 × Return on normal economy
or
0.151 - 0.0182 = 0.87 × Return on normal economy
or
Return on normal economy = 0.1526
or
= 0.1526 × 100%
= 15.26%
Real GDP will increase ONLY WHEN OUTPUT INCREASES. Increase in GDP indicates economic growth. Real GDP is a measure of the economic output adjusted for inflation. GDP is very important because it can be used to estimate the value of total spending in an economy.
Answer:
$600,000
Explanation:
Data provided in the question:
Controllable margin = $66,000
Sales = $480,000
Return on investment = 10%
Now,
Return on investment = Controllable Margin ÷ Average Operating Assets
or
10% = $60,000 ÷ Average Operating Assets
or
Average Operating Assets = 60000 ÷ 10%
or
Average Operating Assets = 60000 ÷ 0.01
or
Average Operating Assets = $600,000
