Answer:
Zero-cupon bond= $376,889.48
Explanation:
Giving the following formula:
Face value= $1,000,000
Mature= 10*2= 20 semesters
Market rate= 0.1/2= 0.05
<u>To calculate the price of the bond, we need to use the following formula:</u>
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [1,000,000 / (1.05^20)]
Zero-cupon bond= $376,889.48
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Answer:
economic and legal
Explanation:
Out of all the options, this option fits the scenario the most and I just took the test.
Answer:
$56,252
Explanation:
<u />
<u>For the investing activities we should post the proceeds from the sale</u>, not the gain or the book value of the equipment
if there is a gain, then it was sold above the book value by this amount
proceeds - book value = gain
book value: 50,960
gain: 5,292
proceeds - 50,960 = 5,292
proceeds = 50,960 + 5,292 = 56,252
