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antiseptic1488 [7]
3 years ago
11

Time value An Iowa state savings bond can be converted to ​$750 at maturity 5 years from purchase. If the state bonds are to be

competitive with U.S. savings​ bonds, which pay 5​% annual interest​ (compounded annually), at what price must the state sell its​ bonds? Assume no cash payments on savings bonds prior to redemption. Ignore taxes.
Business
1 answer:
Elden [556K]3 years ago
4 0

Answer:

$78.35

Explanation:

Given:

Future value = $750

Maturity time = 5 years

Annual rate = 5%

Now,

Future value = P × ( 1 + r )ⁿ

Where, P is the present value of the bonds

r is the rate of interest

n is number of periods

on substituting the values, we get

$100 = P × ( 1 + 5% )⁵

or

$100 = P × ( 1.05 )⁵

or

P = $78.35

Hence, the state should sell its bond at a price of $78.35

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Suppose Amazon stock is trading for $ 495 per​ share, and Amazon pays no dividends. a. What is the maximum possible price of a c
Contact [7]

Answer:

a) $ 495

b) $ 530

c) $ 30

d) $ 70

Explanation:

Given:

Stock price = $ 495

Strike prize = $ 530

a) The maximum possible price of a call option on​ Amazon is the stock price,

thus, the answer is $ 495

b) the maximum possible price of a put option on Amazon is the strike prize, thus, the answer is $ 530

c) given:

strike price = $ 465

now,

Minimum possible value of call option is given as  :

⇒ Stock price- strike price

on substituting the values, we get

⇒ $ 495 - $ 465

or

⇒ $ 30

thus,

answer is $ 30

d) Given:

strike price = $ 565

Minimum possible value of an american put option on amazon stock is calculated as:

⇒ Strike price- stock price

on substituting the values, we get

⇒ $ 565 - $ 495

or

= $ 70

hence, the answer is $ 70

7 0
3 years ago
Swifty Corporation uses the perpetual inventory and the gross method. On March 1, it purchased $46000 of inventory, terms 2/10,
eimsori [14]

Answer and Explanation:

The computation is shown below:

= (Purchase value of the inventory - returned goods) × discount applied

= ($46,000 - $4,600) × 2%

= $828

Here the perpetual inventory is followed so the Swifty should credit the discount amount by the name of the inventory at $828

Therefore the inventory should be credited by $828

6 0
3 years ago
The CPI was 172 in 2007, and the CPI was 46.5 in 1982. If your parents put aside $1,000 for you in 1982, then how much would you
Elena L [17]

Answer:

The amount needed in the year 2007=$3,698.92

Explanation:

<em>This price index is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.  </em>

A rise in the price index implies inflation

Inflation is the increase in the general price level. Inflation erodes the value of money.  

So we can determine the amount required today to buy goods worth $1000 in 1982 as follows:

CPI in the current year /CPI base year× Cost in base years

(CPI in 2007/CPI in 1982) ×  Cost in 1982

172/46.5× 1000 =$3,698.92

The amount needed in the year 2007=$3,698.92

7 0
4 years ago
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adj
tamaranim1 [39]

Answer:

The correct answer is debit accounts receivable, credit cash.

Explanation:

Note debit is a receipt that a company sends to its client, in which it is notified that it has charged or debited a certain sum or value in its account, for the concept indicated in the same note. This document increases the value of the debt or account balance, whether due to an error in billing, interest for late payment, or any other circumstance that means an increase in the balance of an account.

6 0
3 years ago
Help me with this please !! I’m not sure if it’s right !
malfutka [58]

Cover letter.

A cover letter accompanies your application and resume to tell employers why you are seeking a position.

A resume is wrong because it is not a letter- it is a formally structured document showing your work experience, education, and skills.

Transcripts are documents from your school showing classes, grades, and what degree or program was taken.

Recommendations are letters from other people about you, saying why you are a good employee or what unique skills you have.

7 0
3 years ago
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