Answer
The answer and procedures of the exercise are attached in a image below****
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
Explanation:
Principle amount is $162000
Rate is 7.5% or 7.5%/12 monthly
So formula is: Interest = Principle * Rate * Time / 100
Interest = 162000*7.5*1/12*1/100 = 1215000/12 = 1012.5
Interest = 1012.5
The values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively.
<h3>How to illustrate the information?</h3>
The price of Bond 1 = RM7,892.93, Bond is selling at a discount because the bond price is less than the Par value
Price of Bond 2 = RM10,000, Bond is selling at par, because the bond price is equal to the par value
Price of bond 3 = RM11,240.90 Bond is selling at a premium because the bond price is more than the par value
The yield to maturity (YTM) is the estimated rate of return. The yield to maturity assumes that the buyer of the bond will hold the bond until its maturity date, and will then reinvest each interest payment at the same interest rate. Therefore, the yield to maturity includes the coupon rate that's within its calculation. The yield to maturity is also known as the redemption yield.
The YTM will be:
= [1800 + (18000 - 21800)/10] / [(18000 + 21800)/2]
= (1800 - 380)/19900
= 1420/19900
= 7.14%
Therefore the values of bond 1 and bond 2 based on the information will be RM7892.93 and RM10000 respectively and the YTM is 7.14%
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Answer:
The Journal entry is as follows:
Interest expense A/c Dr. $100
To Interest payable A/c $100
(To record the interest expense for the first month)
Workings:
Amount borrowed = $10,000
Annual interest rate = 12%
Interest is due at the end of the year
Time period = 1 month
Therefore,
Interest expense = $10,000 × 0.12 × (1 ÷ 12)
= $100
Answer:
1. Charles's employer assigns him to provide consulting services to an Australian firm that's opening a manufacturing facility in China. - <u><em>exports (X),</em></u>
Exports include the goods or services that originate in the US and are then sold to entities outside the USA. Charles works in the US and is providing services to an Australian firm so this qualifies as an export.
2. Dina buys a new BMW, which was assembled in Germany. - <u><em>Consumption and Imports</em></u>
Consumption refers to amounts spent by households or people in the Economy on goods and services. Imports refer to the use of goods and/ or services that did not originate in the US. Dina both spent on a good as well as the good being from outside the US making it both Consumption and Imports.
3. Gilberto buys a new set of tools to use in his plumbing business. - <u><em>Consumption.</em></u>
Consumption refers to amounts spent by households or people in the Economy on goods and services so Gilberto spending on a new set of tools qualifies as Consumption.
4. Dina gets a haircut. -<em><u> Consumption.</u></em>
Consumption refers to amounts spent by households or people in the Economy on goods and services so Dina getting a haircut which is a service falls under Consumption.
5. The Federal Aviation Administration expands the runways at Philadelphia International Airport, which is just a few miles from Charles and Dina's house. - <u><em>Government Purchases</em></u>
Government Purchase which are otherwise known as Government Spending refer to money spent by the government in an Economy. The FAA is a Federal Government agency so expanding the runway is a Government Purchase.