Answer:
given statement is False
Explanation:
solution
As given bond sold at the discount
maturity value less than present value
but maturity value can not be less than present value of principal and interest
because bond sold at the discount
if bond sold at the discount than maturity value will be greater than the resent value of future cash flow
so we can say that given statement is False
Answer:
16.7 percentage
Explanation:
bond price = $1000 - $100 = $900
fixed amount / bond price * 100 = IR
(150/900) * 100 = 16.7%
The reason for this equation is that interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal.
originally the price if the bond is $1000 which later falls by $100, so that leaves us to a $900 bond rate.
The interest rate is typically noted on a annual basis known as the annual percentage rate (APR).
Answer:Share premium account of $24,000
The provider of attorney services of $30,000
Explanation:
On provision of services, the Attorney services expenses account is debited with $54,000 and the attorney services provider account credited with $54,000
Furthermore a share account is opened for the provider and credited with $30,000 , the share premium is credited $24,000 and a debit transfer is made to his liability account initially credited.
The $24,000 credit to share premium represents the difference between the nominal value of the share of $5 and the market value of $9 multiply by the 30,000 shares he was paid with.
Also a memorandum will be issued to state that 6000 share has been transferred from Miller to the attorney services provider and the shares will be delited from his name and entered in the name of the services provider because the credit of shares to his account does not represents new shares issued but it's the transfer of Miller's shares to him.
Answer:
option 2) smaller
As CE is the amount which if the agent gets with certainty, then agent will be indifferent between playing lottery or getting that amount with certainty
So L2 is more risky, & agent is risk averse, so agent will be ready to accept a lower amount with certainty ( as compared to the amount for a safer option : L1)
So CE of L2 will be lower
Answer:
Second National Bank
Present value (PV) = $5,400
Future value (FV) = $13,900
Interest rate (r) = 10% = 0.10
FV = PV(1 + r)n
$13,900 = $5,400(1 + 0.10)n
<u>$13,900</u> = (1.10)n
$5,400
2.574074074 = (1.10)n
Log 2.574074074 = n log 1.10
<u>Log 2.574074074</u> = n
Log 1.10
n = 9.9 years
None of the answers is correct
Explanation:
In this case, we will apply the formula of future value of a lump sum. The present value, interest rate and future value were provided with the exception of number of years. Thus, the number of years becomes the subject of the formula. The future value equals present value, multiplied by 1 plus interest rate, raised to power number of years.
