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Fantom [35]
3 years ago
8

Assume you are in the 28 percent tax bracket and purchase a municipal bond with a yield of 3.10 percent. Use the formula present

ed in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Required:
Three years ago you purchased a corporate bond that 5.8 percent. The purchase price was $1000. What is the annual dollar amount of interest that you receive from your bond investment?
Business
1 answer:
Misha Larkins [42]3 years ago
8 0

Answer:

a. Taxable equivalent yield:

Municipal bonds are tax free so if they are to be compared with bonds where you have to pay taxes, the following formula is used:

= Municipal interest / ( 1 - tax rate)

= 3.10 / (1 - 28%)

= 4.31%

b. Annual amount of interest received:

= Coupon rate * Face value

= 5.8% * 1,000

= $58

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The appraisal interview _______
Tomtit [17]

Answer:

The appraisal interview should be held in two segments because the rater must perform the role of both evaluator and counsellor.

Explanation:

Following are the purpose of appraisal interview:

1) Rate and evaluate the past performance.

2) Feedback for development and recommend the training program.

3) Discuss the growth plan of employee.

Therefore, role of one who is taking appraisal is very vital for the growth and development of employee. So, he has to play two role, both evaluator and counsellor.

6 0
4 years ago
As a business, you want to produce
Molodets [167]

Answer:

c

Explanation:

you want to produce your product at cheapest price there for you gain most revenue

7 0
3 years ago
The Missing Link Chain-Link Fence Company is trying to determine how many chain-link fabricating machines to buy for its factory
OleMash [197]

Answer:

Explanation:

What is given:

The price of a new fabricating machine - 60

The price of a one-year-old machine - 51

The real interest rate is 10% per year

Marginal product of fabricating machines 165-2K (K - desired number machines)

If calculate the depreciation, (60-51)/51 = 15%

a) Find user cost of capital

User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine

= 60*(0.10+0.15) = 15 units

b) Determine the number of machines that will allow Missing Link to maximize its profit

165-2K=15

2K = 150

K = 75 machines

c)

Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?

165-2K = 15/(1-0.4)

165-2K=14/0.6

165-2K=25

2K=140

K=70 macines

4 0
3 years ago
If a perfectly competitive firm has total revenue that is equal to $400 when it produces one hundred units, and if its total rev
LUCKY_DIMON [66]

Answer:

$4

Explanation:

Perfectly competitive firms are characterised by:

1) Free entry and exit of buyers and sellers.

2) Large number of buyers and sellers.

3) Existence of identical product.

4) Informations are readily available to the customers.

Marginal revenue(MR) refers to a change in revenue as a result of an additional change in output.

At 100 units output, MR=$400

At 101 units output, MR=$404

Change in MR=$404-$400

=$4

Change in output=101 units-100units

=1 unit

Marginal revenue(MR)= change in revenue/Change in output

Marginal revenue (MR)=$4/1 Unit

MR= $4

5 0
3 years ago
Read 2 more answers
Suppose that a demand curve exhibits two points. Initially, at price P 0 P0 , the quantity demanded is Q 0 Q0 . When price chang
Vinvika [58]

Answer:

Price Elasticity of Demand= \frac{Percentage change in Demand}{Percentage change in Price}

At Price = P_{0}

Quantity demanded = Q_{0}

At Price = P_{1}

Quantity Demanded = Q_{1}

Now,

Percentage change in Demand = \frac{(Q_{1} - Q_{0})}{Q_{0}}

Percentage change in Price = \frac{(P_{1} - P_{0})}{P_{0}}

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{Q_{0}}}{\frac{(P_{1} - P_{0})}{P_{0}}}

Above formula if used will give the correct answer related to Price Elasticity of Demand.

Another variant of above formula is also being used on prominent basis.

Price Elasticity of Demand = \frac{\frac{(Q_{1} - Q_{0})}{(Q_{1} + Q_{0})} }{\frac{(P_{1} - P_{0})}{P_{1} + P_{0}} }

Utilization of any of the above Formula will give the ideal outcome in estimating Price elasticity of demand.

5 0
4 years ago
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