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Amanda [17]
3 years ago
12

At the beginning of her current tax year, Angela purchased a zero-coupon corporate bond at original issue for $46,000 with a yie

ld to maturity of 5 percent.Given that she will not actually receive any interest payments until the bond matures in 10 years, how much interest income will she report this year assuming semiannual compounding of interest?
Business
1 answer:
disa [49]3 years ago
8 0

Answer:

Semiannual compounding of interest = $2,328.75

Explanation:

Given:

Semi annual rate =  5/2 = 2.5 = 0.025

P = $46,000

Find:

Semiannual compounding of interest

Computation:

Semiannual compounding of interest = 46,000[1 - (1 + 0.025)²]=

Semiannual compounding of interest = $2,328.75

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Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these de
Mashutka [201]

Explanation:

Note, for private spending, <em>consumption</em> refers to purchases usually made for present needs, while <em>investment</em> refers to purchases that may provide. For government spending, <em>consumption </em>refers to purchase made to care for the immediate welfare or needs of those governed without any monetary benefits, while <em>investment </em>purchases are done with the perceived future benefits in mind.

<u>Private Spending</u>

  • Laundromats buying washing machines =  Investment
  • People buying houses  = Investment
  • People buying newspapers  = Consumption
  • People buying food = Consumption

<u>Government Spending</u>

  • Payment for public safety employees = Investment
  • Building hospitals = Investment
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4 0
3 years ago
Nordstrom sells designer suits made in italy in its stores in the united states. nordstrom is ____ suits. a. importing b. taxing
erica [24]

Importing

What is Importing?
An import is an item or service that is purchased outside of its nation of origin. International trade is made up of imports and exports. A country has a negative trade balance, or a trade deficit, if the value of its imports exceeds the value of its exports. Since 1975, the US has had a trade imbalance. The U.S. Census Bureau estimates that in 2019, the deficit was $576.86 billion.

To learn more about Importing
brainly.com/question/24473707
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8 0
1 year ago
Walt has a $300,000 listing at 8% commission. An agent from another firm sold the listing. Walt has a 70% commission split with
erastovalidia [21]

Answer:

$8,400

Explanation:

total commission = $300,000 x 8% = $24,000

50% co-brokerage split = $24,000 x 50% = $12,000

Walt's commission = $12,000 x 70% = $8,400

the 70% commission split between Walt and his broker means that Walt keeps 70% of the commission and the broker keeps 30%.

total commission is split between the two firms because the Walt's listing was sold by another firm.

4 0
4 years ago
An investor owns $3,000 of Adobe Systems stock, $6,000 of Dow Chemical, and $7,000 of Office Depot. What are the portfolio weigh
Drupady [299]

Answer:

0.1875; 0.375; 0.4375

Explanation:

Given that,

Adobe Systems stock = $3,000

Dow Chemical = $6,000

Office Depot = $7,000

Total Value of stock:

= Adobe Systems stock + Dow Chemical + Office Depot

= $3,000 + $6,000 + $7,000

= $16,000

Portfolio weights of Adobe Systems stock:

= Value of Adobe Systems stock ÷ Total Value of stock

= $3,000 ÷ $16,000

= 0.1875

Portfolio weights of Dow Chemical stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $6,000 ÷ $16,000

= 0.375

Portfolio weights of Office Depot stock:

= Value of Dow Chemical stock ÷ Total Value of stock

= $7,000 ÷ $16,000

= 0.4375

3 0
3 years ago
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