The amount to be paid on maturity is $100,440
Given that;
Purchase value of 8% corporate bond at 93 = $1,000
Find:
The amount to be paid on maturity
Computation:
Interest amount = Face value of bond × Price × Interest
Interest amount = $1,000 × 93 × 8%
Interest amount = $7,440
The amount to be paid on maturity = $7,440 + $93,000
The amount to be paid on maturity = $100,440
In finance, maturity or maturity date is the final payment due date of a loan or other financial instrument such as a bond or term deposit upon which principal (and remaining interest) is paid.
Maturity is the date on which the life of a trade or financial instrument ends, after which it must be renewed or cease to exist. The life of a bond is the period during which its holder receives interest payments on their investment. When the bond matures, the holder will be refunded the face value. The maturity may change if the bond has a put or call option.
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The marginal tax rate is the number that the government sets for people to pay. The effective tax rate is the number that people actually pay for their taxes after deductions.
Answer:
In simple words, Harvesting seems to be the tool used by traders and investors to get out of business and, preferably, to recover the interest of their investments in the company. It's about more than trying to sell and having to leave a company. It includes collecting interest, risk reduction, and developing opportunities for the future.
Whenever a marketing plan includes a harvest tactic, investment firms and borrowers are convinced that the proprietors aim to establish the market and start selling it to either international shareholders or go to another corporation.
If government tax policy requires peter to pay $15,000 in tax on annual income of $200,000 and Paul to pay $10,000 in tax on annual income of $100,000, then the tax policy is: <u>regressive.</u>
<h3>What is
tax ?</h3>
- Taxes refer to a mandatory contributions collected by government agencies from businesses.
- Tax revenues fund government activities, such as public works and services such as roads and schools, and programs such as Social Security and Medicare.
- Collecting taxes and fees is a fundamental way to generate public revenues that enable countries to fund investments in human capital, infrastructure, and the provision of services to citizens and businesses. .
- Derived from the Latin taxare, meaning "to assess".
- Prior to that, the related word "task" was used in English from Old French.
- For some time both "tasks" and "taxes" were in common use, the former requiring labor and the latter requiring money.
- "Control" then came to mean tiring or challenging.
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