Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it
1 answer:
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Answer:
6.52%
Explanation:
For computing the nominal yield to call, first we have to find out the present value by applying the present value formula which is shown in the attachment below:
Future value = $1,000
Rate of interest = 6.50% ÷ 2 = 3.25%
NPER = 15 years × 2 = 30 years
PMT = $1,000 × 8.25% ÷ 2 = $41.25
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $1,166.09
Now to determine the yield to call we use the RATE formula that is shown in the attachment below:
Present value = $1,166.09
Future value or Face value = $1,120
PMT = $1,000 × 8.25% ÷ 2 = $41.25
NPER = 6 years × 2 = 12 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the bond nominal yield to call is
= 3.26% × 2 years
= 6.52%
Answer:
V(n)=140,000-10000n
V(7)=$70,000
Explanation:
Purchase Cost= $140,000
Value After 11 Years =$30,000
Depreciation per Year =
The truck depreciates at a rate of $10000 per year.
Using straight-line depreciation, the value of the truck in dollars, V
The linear function of its age in years n, V(n)=140,000-10000n
When the truck is 7 years old
n=7
Truck's Value, V(n)=140,000-10000n
=140,000-(10000X7)
=140,000-70000
=$70,000