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lesya [120]
3 years ago
15

Connie and sam's detached garage was recently destroyed by a tornado. their house was insured for $135,000, and the detached str

uctures coverage was 10 percent of the insured value of the home. the loss to the garage was valued at $15,000. the insurance company would pay ____ less the deductible on this loss.
Business
1 answer:
KIM [24]3 years ago
8 0

The correct answer is $13,500

The insurance coverage for the garage will cover the garage for 10% of the insured value of the home. This is calculated by multiplying .1 x $135,000 = $13,500.

Even though there is $15,000 in damage, the garage is only covered for $13,5000 of insurance.

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Answer:

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Explanation:

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We must understand that in the end of the life of a bond(maturity), the value should always match the face value thus, the difference in bond market price arise from coupon payment.

If a bonds coupon payment is 40 dollars while another bond coupon payment  is 80 dollars the present value of the second will be more influenced from the interest rate as there are more dollars in the future to discount.

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3 0
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