Answer:
1.15%.
Explanation:
This can be calculated as follows:
Yield be on a 10-year TIPS = Rate of return on the 10 year T-bond - Average Inflation - Market Risk Premium (MRP)
Therefore, we have:
Yield be on a 10-year TIPS = 4.05% - 2.0% - 0.9% = 1.15%
Therefore, the yield on a 10-year TIPS should be 1.15%.
Answer:
36.84 years and 31.82 years
Explanation:
In this question ,we applied the rule no 70 which means we get to know the estimated number of years for doubling the real GDP
In the first case, the estimated number of years
= 70 ÷ average annual growth rate
= 70 ÷ 1.9%
= 36.84 years
In the second case, the estimated number of years
= 70 ÷ average annual growth rate
= 70 ÷ 2.2%
= 31.82 years
Answer:
1 Cash 11,190,000
Discount on Note Payable 810,000
Note Payable 12,000,000
2- Interest Expense 810,000
Discount on Note Payable 810,000
3- Note Payable 12,000,000
Cash 12,000,000
Explanation:
In order to pass the Journal entry for issuance of Note Payable. First we need to calculate the Discount on issue of Bond Payable. The discount on note payable is calculated using the 12,000,000 x 9% x 9/12 = 810,000. In case of note payable is discount is interest expense for issuer hence on due corporation will pay full value of note to purchaser of note.
Answer:
7.5 Years
Explanation:
The computation of the payback period of the given machine is shown below:
<u>Year Initial outflow Cash flow Cumulative cash flow</u>
(52000)
1 10,000 10,000
2 10,000 20,000
3 10,000 30,000
4 8,000 38,000
5 8,000 46,000
6 2,000 48,000
7 2,000 50,000
8 4,000 54000
9 4,000 58000
10 4,000 62000
Now the Payback period is
= Completed years+ required cash ÷ annual cash inflow
= 7 years + 2000 ÷ 4000
= 7.5 Years
You can spend money on things you need first instead of the things you want. Most people spend their pay on things that they want rather than getting something they need this leads to financial problems. Another way is to put at least $20 in the bank every paycheck. This way if something bad happens and you need to pay for it then you have the extra money in your bank. Daily spending can be a bad thing because you are constantly spending and never saving money, and life is full of surprises so you need to save money as well for preparation.
Hope this helped. Have a great day!
