Imputed interest is a term used in tax law to describe a situation where a lender charges no interest on a loan, but the Internal Revenue Service (IRS) considers the loan to have been made at an interest rate that is "imputed" or implied by market conditions. This can happen when a l...
Calculate the total imputed principal of the payment stream. Place the cursor in Cell A3, click the "AutoSum ( ∑ )" button located on the top toolbar of Excel and hit "Enter." Step 6 Subtract the imputed principal from the total sale amount to arrive at imputed interest. Input "=1000...
Imputed interest, sometimes referred to as "phantom interest," is an estimated interest rate. The imputed interest on the bond is subject to income tax. The IRS uses an accretive method when calculating the imputed interest on Treasury bonds and sets a minimum interest rate relative to imputed ...
How do you compute total bond interest expense when a bond is sold at a discount? Describe how the market interest rate, relative to the contractual interest rate, affects the selling price of bonds. Also explain the rationale for requiring an investor to pay accrued intere...
This heaven-on-earth situation finally was “discovered” in the mid-1960s by many major investing institutions. But just as these financial elephants began trampling on one another in their rush to equities, we entered an era of accelerating inflation and higher interest rates. Quite logically,...
to reverse itself. Rising interest rates ruthlessly reduced the value of all existing fixed-coupon investments. And as long-term corporate bond rates began moving up (eventually reaching the 10 percent area), both the equity return of 12 percept and the reinvestment "privilege" began to look ...
To compute both metrics, we embed the (real and synthetic) data into hyperspheres with most samples concentrated around the centers, i.e., the real and generative distributions (ℙr and ℙg) has spherical-shaped supports. In this transformed space, typical samples would be located near ...
50. The factor scores and SEs for age-14 and age-17 distress were estimated in MPlus 8.251, as it was not possible to compute the SEs based on categorical data in R. Similarly, we performed the latent class and factor mixture model analyses in MPlus as this allowed us to specify the...
just don’t manage to pull it off. Replacement cost accounting almost always shows thatcorporate earnings have declined significantly in the past decade.If such major industries as oil, steel, and aluminum really have the oligopolistic muscle imputed to them, one can only conclude that their prici...
Zero-coupon bonds essentially lock the investor into a guaranteed reinvestment rate. This arrangement can be most advantageous when interest rates are high and when placed intax-advantagedretirement accounts. Some investors also avoid paying taxes on imputed interest by buying zero-couponmunicipal bonds...