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Dmitry [639]
2 years ago
10

It is a fact that there is a(n) ________ relationship between interest rates and bond values in the secondary market. When inter

est rates ________, bond prices ________, and when interest rates ________, bond prices ________. Question 10 options: direct; drop; rise; rise; drop inverse; rise; rise; drop; drop direct; rise; rise; drop; drop direct; rise; drop; drop; rise inverse; rise; drop; drop; rise
Business
1 answer:
LenKa [72]2 years ago
7 0

Inverse; rise; drop; drop; rise

It is a fact that there is an inverse relationship between interest rates and bond values in the secondary market. When interest rates rise, bond prices drop, and when interest rates drop, bond prices rise.

<h3>What is the relationship between interest rate and bond values?</h3>

Bond prices and interest rates go hand in hand. Bond prices typically decline as borrowing costs increase (when interest rates rise), and vice versa.

Most bonds have a fixed interest rate that increases in attractiveness when interest rates decline, increasing demand and bond price.

In contrast, a bond's price will drop if interest rates increase because investors will no longer value the lower fixed interest rate it offers.

Learn more about relationship between interest rate and bond prices here:

brainly.com/question/24922696

#SPJ4

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In April of the current year, Steelman Press Company transferred Ken Sherm from its factory in Louisiana to its plant in Florida
Verdich [7]

Answer:

A) $158.40

B) $77.90

C) $42

Explanation:

The question is to determine the tax figures for both the State Unemployment Tax Act (SUTA) for Louisiana and Florida and the net Federal Unemployment Tax Act (FUTA) on Sherm's wages.

A) Amount of SUTA tax the company must pay to Louisiana on Sherm's wages

Out of the $14,190 wages of Sherm for the year, $4,950 was paid in Louisiana

Meaning the State SUTA tax in Louisiana = $4,950 x the tax rate for SUTA in Louisiana = 3.2%

= $4,950 x 3.2% = $158.40

B) Amount of SUTA tax the company must pay to Florida on Sherm's wages

Out of $14,190, $4,950 was paid in Louisiana meaning (14,190 - 4,950) = 9,240 was paid in Florida

However, the taxable wage limit is $7,000

threefore, SUTA in Florida = ($7,000-$4950 x 3.8%

= $77.90

C) Amount of the net FUTA tax on Sherm's wages

Using the same taxable wage limit of $7,000

FUTA tax = $7,000 x 0.6% = $42

8 0
3 years ago
Short definition for business cycle ?
DiKsa [7]
A cycle or series of cycles of economic expansion and contraction.
4 0
3 years ago
Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If a check for $20,
Arlecino [84]
The answer is b $15,000
7 0
3 years ago
Scenario: you work for an investment banking firm and have been asked by management of vestor corporation (not real), a software
Bas_tet [7]

Total capital = 10 + 8 + 2 = 20 Million

Weight of bonds (Wd) = 10/20 = 0.5

Weight of preferred stock(Wp) = 2/20 = 0.1

Weight of stock equity(We) = 8/20 = 0.4

Cost of debt = YTM of the bonds issued (We assume its annual coupon)

YTM =rate(nper,pmt,pv,fv) in excel =rate(20,60,-950,1000) = 6.4521%

Cost of debt after tax(Rd) = 6.4521*(1-0.34) = 4.2584%

Cost of preferred shares (Rp) = Preferred dividend/ price = 2.5/25 = 0.10 =10%

Cost of equity (Re) = Rf + beta*(Rm-Rf) = 3.5 + 1.2*(13-3.5) =14.9%

WACC = Wd*Rd + Wp*Rp + We& Re

WACC = 0.5*4.2584% +0.1*10% + 0.4*14.9% = 9.089 = 9.09%

3 0
3 years ago
Payroll Entries Widmer Company had gross wages of $256,000 during the week ended June 17. The amount of wages subject to social
Arlecino [84]

Answer:

a.

Date               Account Title                                              Debit            Credit

June 17          Salaries and Wages Expense                 $256,000

                      Social Security taxes Payable                                       $13,824

                       Medicare taxes payable                                                 $3,840

                       Federal income tax payable                                         $51,200

                        Salaries and Wages Payable                                      $187,136

<u>Working </u>

Social security taxes payable = 6% * 230,400 = $13,824

Medicare taxes payable = 1.5% * 256,000 = $3,840

Salaries payable = 256,000 - 13,824 - 3,840 - 51,200 = $187,136

b.

Date               Account Title                                              Debit            Credit

June 17          Payroll tax expense                                $19,648

                      FICA Taxes payable                                                       $13,824

                     Medicare taxes payable                                                  $3,840

                     State unemployment taxes payable                               $1,728

                      Federal unemployment taxes payable                          $  256

<u>Working </u>

FICA = Social security          

State unemployment taxes payable = 5.4% * 32,000 = $1,728

Federal unemployment taxes payable = 0.8% * 32,000 = $256

Payroll tax expense = 13,824 + 3,840 + 1,728 + 256 = $19,648

8 0
2 years ago
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