Answer:
The bond will yield 3.8% as their yield to maturity did not change. Below is the calculation to check it.
Explanation:
As the bond market price change over time, there is a capital gain/loss we need to figure it out.
We solve for the market price of the bond 5-year before and 4 years before maturity:
C 58.000
time 5
rate 0.038
PV $259.6629
Maturity 1,000.00
time 5.00
rate 0.038
PV 829.88
PV c $259.6629
PV m $829.8761
Total $1,089.5389
Now, 4-years:
C 58.000
time 4
rate 0.038
PV $211.5301
Maturity 1,000.00
time 4.00
rate 0.038
PV 861.41
PV c $211.5301
PV m $861.4113
Total $1,072.9414
<em><u>the return will be:</u></em>
(interest + capital result ) / investment
(interest + 4-year price - 5-year price) / investment
(58 + 1,072.94 - 1,089.54) / 1,089.54 = 0.037997687
Answer:
A real account is an account that will not close at the end of the considered year. So apparently, balances in real accounts are carried over to become the the start of balances of the next year/period. Real accounts are also permanent accounts.
Answer: C beyond a certain point, total utility decreases as income rises
- Diminishing marginal utility means that beyond certain point, the total utility from consuming a good decreases, and increasing its consumption monotonically, makes that every additional unit of consumption delivers less utility each time.
- This is because most behavioral consumers models try to emulate the principle of scarcity: the less available units of a good, the more it values.
- Then, an increasing income would allow us to buy more and more goods, and because of the existance of diminishing marginal utility, we would get less utility from consuming additional units of every goods each time.
- As an <u>example</u>,one could think about eating chocolate. The first bar would give us much happiness (utility), but increasing the number of bars consumed would eventually vanish this "happiness".
Answer:
$98,000
Explanation:
The computation of the total amount of property, plant, and equipment is shown below:
= Land + equipment
= $90,000 + $8,000
= $98,000
These two above items are classified under the property, plant, and equipment and the same is to be considered while calculating it
Hence, all other information which is given is not relevant. Hence, ignored it
