a balance achieved between two desirable but incompatible features; a compromise.
"a trade-off between objectivity and relevance"
Answer: $14594
Explanation:
The budgeted selling expense for the manager for the month ended June 30 will be calculated thus:
The unit sales for June will be:
= [700 × (1 + 3%)]
= 700 × (1 + 0.03)
= 700 × 1.03
= 721 units
Commission will be:
= 2% × (721 × 700)
= $10,094
Therefore, the selling expenses to be reported will be:
= $10,094 + $4500
= $14594
Answer:
B. The primary advantage to municipal bonds is that interest income received is not taxed by the federal government.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A municipal bond can be defined as a type of bond that is typically issued by a municipality, county, local government or state in order to finance or sponsor capital expenditures for the public such as water supply, construction of roads, etc.
Hence, the primary advantage to municipal bonds is that interest income received on this type of bond is not taxed by the federal government.
Answer:
A) Lend PV of $100 and buy two calls.
Explanation:
For the option expiration date, it is mentioned that the stock price could be either $100 or $200 so it would be the final payoff either in $100 or $200
Now the lending of the present value i.e. $100 would be compulsory
So, the two calls values would be
= ($200 - $150) × 2
= 100
Total value be
= $100 + $100
= $200
Therefore the first option is correct
And all the other options are wrong
Answer:
$1086 approx.
Explanation:
<u>Given</u>: Coupon rate 7.5 % per annum i.e 3.75% semi annually
YTM = 4.4% per annum i.e 2.2% semi annually
Face value: $1000 (assumed)
No of periods to maturity = 3 years × 2 half years = 6 periods
Value of a bond is given by the following equation
where 
= Market value of bond
C= Coupon payment each period
YTM = Yield to maturity rate
n= no of periods
Hence, 
= 5.5638 × 37.5 + 1000 × .8776
= 208.64 + 877.60
= 1086.24
Market value of the bond is $1086 approx
This means, the bond is valued above par or priced at a premium. The reason being, it's rate of coupon payments being higher than it's yield to maturity rate.
