You purchase a new car (produced this year) for $38,000. After six months, you sell the car for $31,500. How much does GDP rise
1 answer:
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Answer:
fair value is $761
Explanation:
Given data
bond value = $1000
rater r = 12 %
rate R = 16%
time = 20 year
to find out
a fair price
solution
we know compounding period in year is = 4
so time 20 x 4 = 80
fair Price = [(Quarterly Coupon) / (1 + R/400)^t] +bond value / (1 + R /400)^t
here
Quarterly Coupon = 12 × 1000/400 = 30
so
fair Price = [(30) / (1 + 16/400)^k] + 1000 / (1+16/400)^80
solve it we get
fair value is $761
Answer:
b. −1.79 percent
Explanation:
You can solve this using a financial calculator. I'm using TI BA II plus ;
First, find Price of the bond if YTM = 5.5%. Since it is semi-annual, adjust the YTM and total duration;
N = 13*2 = 26
I/Y = 5.5%/2 = 2.75%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1046.01
Next, find Price of the bond if YTM = 5.7%.
N = 13*2 = 26
I/Y = 5.7%/2 = 2.85%
PMT = (6%/2)*1000 = 30
FV = 1,000
CPT PV = $1027.28
Percentage change =[ (New price- Old price)/Old price] *100
= -1.79%
Answer:
Explanation:
The stockholder's equity statement is composed of common stock and retained earnings. The ending balance shown in the attached spreadsheet, after modification.
The Ending balance of earnings retained = Starting balance of earnings retained + net income - dividend paid
And, Ending balance of common stock = Starting balance of common stock + issued stock
The preparation of the stockholders ' equity statement for the year ended December 31, 20Y7 is provided in the spreadsheet. The attachment below is:
