Answer:
(b) 1440
Explanation:
As the coupon rate of 8% is greater than the yield to maturity (YTM) of 6% annually, the bond is selling at a premium. Hence, the bond will be called at the earliest i.e. 15 years.
Coupon = Call Price * Semi-annual coupon rate = X * [0.08 / 2] = X * 0.04
Yield to call = 6% annually = 3% semi-annually
Time = 15 years * 2 = 30
We know that,
Current Price of bond = Coupon * [1 - (1 + YTC)-call date] / YTC + Call Price / (1 + YTC)call date
- 1,722.25 = [X * 0.04] * [1 - (1 + 0.03)-30] / 0.03 + [X / (1 + 0.03)30]
- 1,722.25 = [X * 0.04] * 19.60 + [X * 0.41]
- 1,722.25 = X * [(0.04 * 19.60) + 0.41]
- X = 1,722.25 / 1.194
-
X=$ 1,442.42 \approx $ 1,440
Answer:
$500,000
Explanation:
Actual amount contributed by Hal to the land purchase = Contribution - Gift from mandy = $300,000 - $200,000 = $100,000
Hal's contribution weight in the land = 100,000 ÷ 600,000 = 1 ÷ 6
Hal's gross estate in the land = $3,000,000 × (1 ÷ 6) = $500,000
Therefore, as to the land, hal's gross estate must include $500,000.
Answer:
The correct answer is C. Only John's commission will be counted in the U.S.
Explanation:
When developing a job that generates income in St. Louis, it is considered that any sale you make because you are within the United States is taken into account within the GNP. For its part, the country that produced the car should consider it as GDP because it is part of the production carried out in a different jurisdiction.
