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Sunny_sXe [5.5K]
2 years ago
13

At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value

that mature in exactly 25 years. David receives $540 in interest ($270 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.4 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much interest income will he report this year if he elects to amortize the bond premium
Business
1 answer:
vagabundo [1.1K]2 years ago
6 0

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

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Answer:

Steve Jobs and he was the CEO of apple

Explanation:

so his products would be iphones, ipads, mac books, etc

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2 years ago
The _______ was a foreign policy embarrassment for the United States during the Kennedy Administration. 
mrs_skeptik [129]
The Bay of Pigs Invasion was a foreign policy embarrassment for the Kennedy Administration.
When John Kennedy assumed the presidency after Dwight Eisenhower, he was faced with the pressure to act on Cuban dictator Fidel Castro's growing relationship with the Soviet Union (yet another of US' formidable enemies).
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3 0
3 years ago
Read 2 more answers
Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 cus
Phantasy [73]

Answer:

A) Single-server single-phase model (M/M/1).

\lambda=2.5 \,customers/hour\\\\\mu=6\,customers/hour

B) The goal is not met, as the average time waiting for service is 5.56 minutes.

C) The new mean service rate is 7.5 customers/hour.

In this case, the average time waiting for service is 4 minutes, so the goal is met.

Explanation:

A) This situation can be modeled as a single-server single-phase model (M/M/1).

The mean arrival rate is 2.5 customers per hour.

\lambda=2.5 \,customer/h

The mean service rate is 6 customers per hour, calculated as:

\mu=\frac{60\, min/h}{10 \,min/customer}=6\, customer/h

B) The average waiting time for a customer can be expressed as:

W_q=\frac{\lambda}{\mu}\frac{1}{\mu-\lambda}  =\frac{2.5}{6}\frac{1}{6-2.5} =0.417*0.222=0.093\,hours\\\\W_q=0.093\,hours*(60min/h)=5.56 \,min

The average waiting time is 5.56 minutes, so it is more than the goal of 5 minutes.

C) If the average time spent per customer to 8 minutes, the mean service rate becomes

\mu=\frac{60\, min/h}{8 \,min/customer}=7.5\, customer/h

An the average waiting time for the service now becomes:

W_q=\frac{\lambda}{\mu}\frac{1}{\mu-\lambda}  =\frac{2.5}{7.5}\frac{1}{7.5-2.5} =0.333*0.2=0.067\,hours\\\\W_q=0.067\,hours*(60min/h)=4 \,min

The average time is now 4 minutes, so the goal is achieved.

6 0
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You must estimate the intrinsic value of Lowell Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $30
Hunter-Best [27]

Answer:

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Explanation:

Intrinsic value:

Intrinsic value is a way of describing the perceived or true value of an asset.

Formula:

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