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2 years ago

A 10-year, 10.00%, $5,000 bond that pays dividends quarterly can be purchased for $4,610.

Business

1 answer:

aliina [53]2 years ago

7 0

Answer: a. 11.00% - 12.00%

Explanation:

We can find the rate using Excel.

Payments are quarterly so we need to adjust the variables to quarterly figures:

Period = 10 years * 4 = 40 quarters

Present value = $4,610 (should be a negative number)

Future value = $5,000 at maturity

The effective rate will be 2.9% as shown in the attachment.

This is a quarterly figure so convert it to annual:

= 2.9 * 4

= 11.6%

<em>It is between 11% and 12%</em>

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2 years ago

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3 years ago

On February 11, 20Y9, Quick Fix Company purchased $2,250 of supplies on account. In Quick Fix’s chart of accounts, the supplies

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3 years ago

A woman earned wages of $32 comma 000, received $2600 in interest from a savings account, and contributed $3500 to a tax-d

PilotLPTM [1.2K]

Answer:

1. Gross income = $34,600

2. Adjusted gross income = $31,100

3. Taxable income = $19,960

Explanation:

Given data;

Earned wages = $32,000

Interest received = $2600

Tax contribution = $3500

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Deductions = $7090

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The adjusted amount from the question is $3500,

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3 years ago