Answer:
A) $12,528
Explanation:
We should consider the rent payment as an annuity. Because we are paying, it should be considered the present value of an annuity.
C 2,468
time 6
rate 0.05
PV $12,526.8080
We are asked for the closet option, so we have to chose A) 12,528
Set a timeline
A time can be seen as a course of events, by making a course of events for your objective you move it into the present and increment your sense of duty regarding accomplish your objective. A timetable is a show of a rundown of occasions in sequential manner. It is commonly a visual communication demonstrating a long bar named with dates close by itself and normally occasions.
Answer:
a) YTM = 9.8%
b) realized compound yield is 9.9%
Explanation:
a) PMT = 80
par value FV = 1000
coupon rate = 8%
curent price PV = 953.1
years to maturity n = 3
Yield to maturity (YTM) = 
= 
= 9.8%
b) r2 = 10% = 100%+10%=1.1
r3 = 12% = 100%+12%=1.12
Realized compound yield:First, find the future value (FV. of reinvested coupons and principal
FV = ($80 *1.10 *1.12) + ($80 * 1.12) + $1080 = $1268.16
let a be the rate that makes the future value $1268.16
953.1(1+y)³ =$1268.16
(1+y)³=1.33
1+y=1.099
y = 0.099 = 9.9%
Explanation:
The following transactions should be presented on a respective journals i.e
(1) Purchased merchandise on account = Purchase journal
As the purchase of merchandise is took place that is debited the merchandise inventory account and credited the account payable account
(2) Collected an account receivable = Cash journal as the cash is received
(3) Recorded depreciation expenses = General journal as it records the adjusting entries, or errors made in accounting, etc
Answer:
C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Explanation:
given data
State 1 State 2 State 3
Probability 25% 50% 25%
Spot rate $ 2.50 /£ $ 2.00 /£ $ 1.60 /£
P* £ 1,800 £ 2,250 £ 2,812.50
P $4,500 $4,500 $4,500
solution
company holds portfolio in pound. so to get hedge, they will sell that of the same amount.
we get here average value of the portfolio that is
The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)
The average value of the portfolio = 2278.13
so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
