Answer: $1,193,838.80
Explanation:
The price of a bond is the sum of the present value of the coupon payments and the face value at maturity.
= Present value of coupon payments + Present value of face value at maturity
First adjust the variables for semi-annual:
Number of periods = 5 * 2 = 10 semi annual periods
Coupon payment = 8% * 1,100,000 * 1/2 years = $44,000
Yield = 6% / 2 = 3%
Present value of coupon payments:
The coupon payments are constant so are an annuity:
= Annuity * Present value of an annuity factor, 10 periods, 3%
= 44,000 * 8.5302
= $375,328.80
Present value of face value
= 1,100,000 * Present value of 1, 3%, 10 periods
= 1,100,000 * 0.7441
= $818,510
Selling price:
= 375,328.80 + 818,510
= $1,193,838.80
Nominal GDP and Real GDP are described below
Explanation:
The nominal value of a good is its value in terms of money. The real value is its value in terms of some other good, service, or bundle of goods.
Examples:
Nominal: That CD costs $18. Japan’s science and technology spending is about 3 trillion yen per year.
Real: A year of college costs about the value of a Toyota Camry. Those tickets to see Van Halen cost me three weeks’ worth of food!
2.Nominal GDP is the market value of goods and services produced in an economy, unadjusted for inflation. Real GDP is nominal GDP, adjusted for inflation to reflect changes in real output. Trends in the GDP deflator are similar to changes in the Consumer Price Index, which is a different way of measuring inflation.
3.. Therefore, nominal GDP will include all of the changes in market prices that have occurred during the current year due to inflation or deflation. ... In order to abstract from changes in the overall price level, another measure of GDP called real GDP is often used.
4.The main difference between nominal GDP and real GDP is the adjustment for inflation. Since nominal GDP is calculated using current prices it does not require any adjustments for inflation. This makes comparisons from quarter to quarter and year to year much simpler to calculate and analyze.
5.Real Gross Domestic Product or real GDP is a measure of the value of economic output like inflation or deflation of prices . Nominal GDP on the other hand is a figure which has not been adjusted for any inflation.
Answer:
The C Corporation was incorporated on January 1 of 2013.
Explanation:
A corporation is a legal entity that constitutes a body to the eyes of the law. it is formed to run a particular business and has as main characteristic the Limited Liability of their owners.
Incorporation is the legal process needed to be followed in order to create a corporation. Thus. If C corporation was formed on January 1, 2013. The Incorporation day is the same January 1, 2013.
Answer:
c. Simplified Employee Pension (SEP)
Explanation:
A simplified employee pension (SEP) is known as a retirement package that a company establish for the employees in the company. Furthermore, the company allows a monthly contribution in form of a tax deduction from the employees' monthly salaries. Therefore, based on the description provided in the problem, the correct answer is a Simplified Employee Pension (SEP).
Answer:
$395,000
Explanation:
A company has a beginning balance of $400,000
The company has a net income of $50,000
The company also declared and paid a cash dividend of $55,000
Therefore, the ending balance in the retained earnings can be calculated as follows
Beginning balance+ net income -Dividend paid
= $400,000+$50,000-$55,000
= $395,000
Hence the ending balance in the retained earnings is $395,000
