<span>agreement to modify an existing contract </span>
Answer:
The dollar value of an 01 is:
$78.4472
Explanation:
a) Data and Calculations:
Bond coupon = 7.6%
Current price = $1,032.20
The yield to maturity value = $1,032.20 * 1.076 = $1,110.6472
Dollar value of an 01 = $1,110.6472 - $1,032.20 = $78.4472
b) In calculating the dollar value of the bond, which is a measure of the change in the value of the bond portfolio for every 100 basis point change in the interest rates, this is referred to as DV01 (that is, dollar value per 01). Often denoted as 100 basis points (bps), 0.01 is equivalent to 1 percent.
Answer:
c. corporation
Explanation:
A corporation is a type of business ownership that recognizes a business as a separate entity from its owners. Legally, a corporation is an independent person with commercial rights like any other person. A corporation is entitled to de business, incur debts, acquires assets, and make profits.
A corporation is expected to file its income tax returns at the end of every financial year. The owners of a corporation or its shareholders are also expected to file their separate income tax returns. An element of double taxation arises the business is taxed, and the owners are also taxed separately. In the other form of business ownership, the business incomes pass as owner's income resulting in single taxation.
Hope it helps! ///////////
