Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July 15th and the purchase pri
1 answer:
Answer:
$6,000
Explanation:
Purchase price = $75,000
Remaining life = 75 months
The amortization amount for each month (Am) is given by the total purchase price divided by the remaining life of the copyright.
Since the purchase was made in July, there are 6 months left in the current year. Therefore, Jorge's total amortization amount during the current year is:
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Answer:
option (C) - 6.11%
Explanation:
Data provided :
Coupon rate one year ago = 6.5% = 0.065
Semiannual coupon rate = = 0.0325
Face value = $1,000
Present market yield = 7.2% = 0.072
Semiannual Present market yield, r = = 0.036
Now,
With semiannual coupon rate bond price one year ago, C
= 0.0325 × $1,000
= $32.5
Total period in 15 years = 15 year - 1 year = 14 year
or
n = 14 × 2 = 28 semiannual periods
Therefore,
The present value =
=
or
= $32.5 × 17.4591 + $1,000 × 0.37147
= $567.42 + $371.47
= $938.89
Hence,
The percent change in bond price =
=
= - 6.11%
therefore,
the correct answer is option (C) - 6.11%