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Ksju [112]
1 year ago
7

uppose the current term structure of interest rates, assuming annual compounding, is as follows: s_1s 1 ​ s_2s 2 ​ s_3s 3 ​ s_4s

4 ​ s_5s 5 ​ s_6s 6 ​ 7.0% 7.3% 7.7% 8.1% 8.4% 8.8% What is the discount rate d(0,4)d(0,4)? (Recall that interest rates are always quoted on an annual basis unless stated otherwise.)
Business
1 answer:
Ahat [919]1 year ago
5 0

Answer:

7.53%

Explanation:

Calculation for the discount rate of d(0,4)d(0,4)

The discount factor is : d=1/1+i

And given that the interest rates are compounded annually the discount factor will gives the present value of the bond when provided with the interest rate and maturity value.

Therefore the present value of a bond with a maturity value of 1 will be;

Present value=1 /(1+i1) (1+i) (1+i3) (1+i4)

Present value=1 / (1.07) (1.073) (1.077) (1.081)

Present value=0.748

The present value of a bond with a maturity value of 1 will therefore be 0.748.

Now, let calculate the discounting factor for the whole 4 years:

1 (1+d (0,4))‐⁴ =0.748

(1+d(0,4))=0.748‐¹/⁴

1+d (0,4) =1.0753

d (0,4)=0.0753

Therefore the discount rate will be 7.53%

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Scott Lockhart owns and operates AAA Delivery Services. On January 1, 20Y7, Common Stock had a balance of $60,000, and Retained
inessss [21]

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:

7 0
2 years ago
How might a Product Owner (PO) adjust team events to take advantage of this capability and promote the flow of value?
zlopas [31]

Answer:

hello your question is incomplete below is the complete question

An Agile Release Train (ART) has implemented a completely automated Continuous Integration/Continuous Delivery (CI/CD) pipeline that can deploy code as it is checked into the source-code repository. How might a Product Owner (PO) adjust team events to take advantage of this capability and promote the flow of value? 1. Release Stories that have been included in the team demo 2. Review and accept Stories as they are completed 3. Identify Stories that are cleared for automatic delivery during Iteration Planning 4. Implement Feature toggles to control which Stories are released

answer :  Identify Stories that are cleared for automatic delivery during Iteration Planning ( 3 )

Explanation:

The Best way a product owner( PO ) can adjust team events in order to take advantage of this capability and promote the flow of values is ; Identify Stories that are cleared for automatic delivery during Iteration Planning.

This is because this options identifies ART and its clearance.

6 0
2 years ago
Barbara Muller Services (BMS) pays its employees monthly. The payroll information listed below is for January 2018, the first mo
Semmy [17]

Answer:

$13,296

Explanation:

Federal unemployment tax rate = 0.8% of 96,000 = 768

State unemployement tax rate = 5.4% of 96,000 = 5,184

Social security tax rate+medicare tax rate = 6.2%+1.45% = 7.65%

7.65% of 96,000 = 7,344

So total tax expense = 768+5,184+7,344 = $13,296

So answer is $13,296

5 0
2 years ago
Calgary Industries is preparing a budgeted income statement for 2018 and has accumulated the following information. Predicted sa
Irina-Kira [14]

Answer:

Net Income      186,900

Explanation:

sales                                   730,000

variable cost

40% of sales

40% of 730,000 =            (292,000)

Selling expense                 (81,000)

Administrative expense    (90,000)

Earnigns before taxes        267,000

income tax expense

30% of EBT

30% of 267,000  =               (80,100)

Net Income                         186,900

8 0
2 years ago
If a check correctly written and paid by the bank for $648 is incorrectly recorded on the company's books for $684, the appropri
yawa3891 [41]

Answer:

add $36 to the book's balance.

Explanation:

Since in the question it is given that the check amount is $648 which is to be paid by the bank is recorded incorrectly in the company books for $684

So the difference of $36 would be added to the company book balance and no adjustment would be made in the bank balance

This addition would balance the both book balance and the bank balance.

7 0
1 year ago
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