Answer:
Liability will be $2,030,412
Explanation:
We need to calculate the present value of future cash flows in order to determine the liability value.
Liability to be recored = PV of $200,000 payment for 10 years at 6% + PV of $1,000,000 at the end of year 10 at 6%
As we know the payment of $200,000 for 10 years is the annuity payment.
Liability to be recored = $200,000 x ( 1 - ( 1 + 6% )^-10 /6% + ( $1,000,000 x ( 1 + 6% )^-10
Liability to be recored = $1,472,017.41 + $558,394.78 = $2,030,412.18
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
The government body responsible for the regulation of the Indian banking system is the Reserve Bank of India.
<h3>What is Government?</h3>
A government refers to an administrative system developed to maintain the functioning of any country by maintaining peace and order by implementing laws and legislation of the constitution and providing better facilities to its citizens.
The reserve bank of India is the governing body that is responsible for the regulation of the Indian banking system which provides guidelines regarding interest rates and issuing of funds and bonds to businesses and individuals.
This maintains the currency system and helps in economic decisions by managing the credit system of the country.
Learn more about the Reserve Bank of India, here:
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Given:
Principal /loan: 45,000
Interest rate: 5% per annum
Term: 6 years.
Simple Interest = Principal * interest rate * term
Simple Interest = 45,000 * 5% * 6
Simple Interest = 13,500
45,000 + 13,500 = 58,500 This is the total amount due
12 months * 6 years = 72 months
58,500 / 72 = 812.50 monthly payment
Kim must pay $812.50 per month for the next 6 years.
Answer:
c. Amsterdam; Bank of Amsterdam
Explanation:
Amsterdam became the leading financial institution in the 17th century and held the position for over a century.
They were responsible for establishing three major economic institutions:
1. The Bank of Amsterdam 1609.
2. The Dutch East India Company which was the world's first publicly listed company. It was established in 1602.
3. The Amsterdam Stock Exchange which was the world's first official stock exchange.
I hope my answer helps you