Answer:
The answer is option D
Explanation:
The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.
First we need to determine the semi annual coupon payment, periods and YTM.
Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000
Semi annual periods = 5 * 2 = 10
Semi annual YTM = 0.08 * 6/12 = 0.04
Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04] + 2000000 / (1+0.04)^10
Bond Price = $2162217.916
The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.
It help you to keep your eyes on your prices
It helps ensure you don’t spend money you don’t have
It helps to prepare for emergencies
1) Fabian owns a store
2) He has to pay back the money to the creditors from whom the inventory was taken.
<u>Explanation:</u>
Ownership is the state, act, or right of owning something, i.e., possessing something. For example, the government is the owner of a state company. Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations.
Since in this question, Fabian is the owner of a shop and he possesses it and he owns it. And since it is a financial debt on Fabian to pay the creditors, it is a liability for him.
Answer:
same here just awake hehe