Answer:
Explanation:
the capital gain will be the difference bewtween the discounted coupon payment and maturity:
being maturity 1,000 and coupon payment 1,000 x n
the casflow to discount will be 1,000(1+n)
This will be discounted at the market rate n1
Leading to the following expression:
The capital gain is the difference between this expression and the 1,000(1+n) we received at the end of the life:
Answer:
The statement is true
Explanation:
Business expenses are deductible to the extent that they are incurred outside the tax home. Expenses related to business purpose are deductible. For example, meals and lodging expenses. Personal expenses are not deductible.
However, for cost incurred on travel to and from destination within tax home is considered business expenses and is not required to be prorated between business and personal expenses. IRS keeps a close eye on any business travel outside tax home as in this case expenses need to be prorated between business and personal use.
I'm assuming single means non-married, in that case your max repayment would be $1,250