Suppose you bought an inflation-indexed security for $12,000 in January 2013 which pays an annual interest of 4 percent. If the value of the inflation index in January 2013 was 106 and its value in January 2014 was 105, what is the value of the inflation-adjusted principal?
A. $12,114.29
B. ?$11,342.58
C. ?$8,000.60
D. ?$13,126.41
Answer: A
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Consider the following four debt securities, which are identical in every characteristic except as noted: W:A corporate bond rated AAAX:A corporate bond rate BBBY:A corporate bond rated AAA with a shorter time to maturity than bonds W and XZ:A corporate bond rated AAA with the same time to maturity as bond Y that trades in a more liquid market than bonds W, X, or YList the bonds in the most likely order of the interest rates (yields to maturity) of the bonds from highest to lowest. Explain your work.
What will be an ideal response?
Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel
Indicate whether the statement is true or false
The Flintstone Construction Company delivers dirt and stone from local quarries to its construction sites. A new truck that was purchased for a cost of $120,000 at the beginning of the year was expected to deliver 200,000 tons over its useful life. The following is a breakdown of the tons delivered during the year to each construction site:Construction Sites:ABCDTons Delivered:2,0003,5004,0001,500How much truck depreciation should be allocated to Site A? (Do not round intermediate calculations.)
A. $21,818 B. $2,000 C. $30,000 D. None of the answers are correct.
The advantage of over depreciation is that you can write o more of your capital costs in the earlier years.
A) MACRS; straight-line depreciation B) MACRS; straight-line deductions C) Straight-line depreciation; the modified accelerated cost recovery system D) Straight-line depreciation; straight-line deductions