Answer:
Different is favorable to the zero-coupon by 2.2%
I would prefer to invest in the zero-coupon as their yield is higher
Explanation:
we divide the future value of the zero coupon with ther current market value to determinate the rate
r = 0,14210 = 14.2%
the saving account yields 12% which is lower than the zero coupon rate thereofre I would be better to ivnest in the zero-coupon.
Answer:
A. $1,059
Explanation:
The effective-interest method comes into play when bonds are purchased at a discount or premium.
This bond has the face value of $10,000, and has been purchased at $9,631 called the carrying amount at beginning/ first year in bond life.
The bond’s interest income is calculated as the carrying amount multiplied by the market rate of interest. In this case, the first annual interest income for bond holder is $1,059.41 = $9,631 x 11%
Then ABC Corporation record $1,059.41 for its interest expense on the first annual interest payment date using the effective-interest method
I would say true. Bcus it is made from silver
