A substantial revision of the income tax code that made business and personal tax returns much easier to complete would tend to
cause which of the following changes in the labor market for accountants?
a. an increase in the demand for accountants
b. an increase in the employment of accountants
c. a decrease in the wage rate of accountants
d. an increase in the number of students choosing to major in accounting
a. an increase in the demand for accountants
b. an increase in the employment of accountants
c. a decrease in the wage rate of accountants
d. an increase in the number of students choosing to major in accounting
1 answer:
Answer:
c. a decrease in the wage rate of accountants
Explanation:
As a result of the revision that makes personal tax returns much easier to complete, people would no longer need the services of accountants to calculate their tax returns. As a result, the demand for accountants would fall, all other things remaining equal.
The fall in demand would lead to a fall in wage rate of accountants
Please check the attached image for a graph explaining this concept
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Answer:
Bond Price = $1213.18605 rounded off to $1213.19
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is a semi annual bond, the coupon payment, number of periods and semi annual YTM will be,
Coupon Payment (C) = 1,000 * 0.10 * 6/12 = $50
Total periods (n) = 10 * 2 = 20
r or YTM = 0.07 * 6/12 = 0.035
The formula to calculate the price of the bonds today is attached.
Bond Price = 50 * [( 1 - (1+0.035)^-20) / 0.035] + 1000 / (1+0.035)^20
Bond Price = $1213.18605 rounded off to $1213.19
