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Andrew [12]
3 years ago
11

What is the expected rate of return on a bond that pays a coupon rate of 9% paid semi - annually, has a par value of $1,000, mat

ures in five years, and is currently selling for $1071? a. 8.40% b. 7.28% c. 3.64% d. 4.21%
Business
1 answer:
spayn [35]3 years ago
8 0

Answer:

b. 7.28%

Explanation:

This question is asking for the yield to maturity(YTM) of the bond. You can solve this using a financial calculator with the inputs below. Additionally, adjust the coupon payment(PMT) and time to maturity(N) to semiannual basis.

Time to maturity; N = 5*2 = 10

Face value; FV = 1000

Price of bond; PV = -1071

Semiannual coupon payment; PMT = (9%/2) *1000 = 45

then compute semiannual interest rate; CPT I/Y = 3.64%

Next, convert the semiannual rate to annual rate(YTM) = 3.64% *2

YTM = 7.28%

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In 2019, Carlos filed his 2018 state income tax return and paid taxes of $800. Also in 2019, Carlos's employer withheld state in
irga5000 [103]

Answer:

He can deduct on his 2019 federal income tax return for state income tax $1,550

Explanation:

According to the given data, we can conclude that Carlos cannot deduct the addition of $600 of state income until next year.

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income tax to deduct on 2019 federal income tax return= Taxes paid+ withheld state income tax from salary

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6 0
3 years ago
If a bank receives a $1 million discount loan from the Federal Reserve, then the bank's reserves will:_____.
joja [24]

Answer:

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4 0
2 years ago
Q 12.4: chaz denver company has identified that the cost of a new computer will be $40,000, but with the use of the new computer
Anton [14]

Payback period is the length of time a project recovers back the money invested.

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Therefore payback period =40,000/5000

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4 0
3 years ago
Strait Co. manufactures office furniture. During the most productive month of the year, 3,700 desks were manufactured at a total
Paladinen [302]

Answer:

Option (c) is correct.

Explanation:

Given that,

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Lowest level of activity = 1,200

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Here, we are using high-low method of cost estimation,

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= (Total cost at highest level of activity - Total cost at lowest level of activity) ÷ (Highest level of activity - Lowest level of activity)

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= $82,400 - ($6.96 × 3,700)

= $82,400 - $25,752

= $56,648

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