Answer:
The answer is option (B), Market price=$991.47
Explanation:
The market price of a bond can be expressed as;
Market price=(Semi-annual coupon×((1-(1/1+r)^i)/r + face value/(1+r)^i
where;
i-maturity period, period=(2×6)=12
r-nominal yield to maturity rate=7.68/2=3.84%
Semi-annual coupon rate=7.5/2=3.75%
face value=$1,000
Semi-
annual coupon=(3.75/100)×1,000=$37.50
replacing;
Market price=Semi-annual coupon×((1-(1/1+r)^i)/r + face value/(1+r)^i
Market price=37.50×((1-(1/1+0.0384)^12)/0.0384 + 1,000/(1+0.0384)^12
Market price=(37.50×(1-0.64)/0.0384)+636.24
Market price=355.23+636.24
Market price=$991.47
The future value of the annual amounts after six years, earning an annual rate of return of 3% is $517.47
What is the future value of an ordinary annuity of $80 per year for six years earning a rate of 3% annually?
Note that the $80 that would have been paid for the video projection system would be invested at the end of each year, in other words, we would invest an equal amount every year for six years, hence, the future value formula of an ordinary annuity is the most appropriate to determine the value of the savings after six years
FV=annual savings*(1+r)^N-1/r
annual savings=$80
r=rate of return=3%
N=number of annual savings for 6 years=6
FV=$80*(1+3%)^6-1/3%
FV=$80*(1.03)^6-1/0.03
FV=$80*(1.194052296529-1)/0.03
FV=$80*0.194052296529/0.03
FV=$517.47
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Answer:
Cardboard packaging for the product is a product cost
Explanation:
As we know that
There are two types of cost i.e product cost and the period cost.
The product cost is the cost which is directly related to the product i.e direct material cost, direct labor cost, etc
And, the period cost is the cost which includes the major part of the selling and admin expenses like - sales commission, advertising expense, etc
Plus, the human capital is necessary for all the firms and the depreciation is also charged in all type of business
So the cardboard packaging is the product cost
Answer:
1. Equity will increase
2. Asset Decrease
3. Asset and liability increase
4. Asset decrease
5. Asset increase
6. Equity decrease
7. Asset increase
8. Asset decrease
9. Asset and liability decrease
10. No effect
11. Asset and liability increase
12. Asset increase
13. Asset decrease
Explanation:
Accounting equation reflects the impact on the business for every transaction. There are three main components of an accounting equation. Asset, Liabilities and Equity. If one component increase the other might increase, decrease or have no effect.
Asset = Liabilities + Capital
