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2 years ago

Yields on municipal bonds are typically ___________ yields on corporate bonds of similar risk and time to maturity.

1 answer:

3 0

Yields on municipal bonds are typically lower than yields on corporate bonds of similar risk and time to maturity.

Municipal bonds, sometimes known as "munis," are a staple of portfolios that invest for income. High yield municipal bonds are a good option for investors who want higher returns. These bonds are riskier but pay out more than their investment-grade counterparts. It's likely that you won't ever get that money back. Here is how they function.

The issuer of a high yield municipal bond is a government. Private companies may also issue high yield bonds, however high yield municipal bonds may only be issued by state or local governments. High yield bonds are typically issued by governments to fund projects with ambiguous or unpredictable revenue. Typically, communities use traditional bonds to finance infrastructure projects like roads and schools. They save high yield instruments, meanwhile, for more speculative endeavours.

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Assume that the marginal cost (MC) of production is increasingincreasing. Can you determine whether the average variable cost

ki77a [65]

Answer:

YES - When marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.

Explanation:

Marginal cost (MC) is the cost of producing an extra unit of output while Average variable cost (AVC) is the cost per unit of output produced.

When MC is below AVC, MC pulls the average down. This means that when MC is falling, AVC is falling

When MC is above AVC, MC is pushing the average up; therefore when MC is rising, AVC is rising.

The conclusion is that MC and AVC have a direct relationship and a rise in one will cause a rise in the other , therefore when the marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.

3 0

3 years ago

Zephyr Inc. sells wind based systems for generating electricity. The company pays no dividends, but you estimate the stock will

kari74 [83]

Answer:

The price you should be willing to pay for this stock= $24.86

Explanation:

To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore 50= xX1.15^5 by solving this equation we have x= 24.86 . The price you should be willing to pay for this stock= $24.86

7 0

3 years ago

sarah has two dependent children who attend sun valley day care while she is at work. she will claim a $1,200 credit for child a

castortr0y [4]

If Sarah is in the income tax band that has a marginal rate of 24%, the amount of the deduction that must be taken in order to generate a tax advantage that is equivalent to that provided by the child care credit is x = 5000.

This is further explained below.

<h3> What amount of deduction is necessary to provide a tax benefit that is equal to that provided by the child care credit if Sarah is in the 24% marginal income tax bracket?</h3>

Generally, The proportion of an individual's income that must be paid in taxes is referred to as that person's marginal tax rate.

The average tax burden may be conceptualized as the entire tax burden expressed as a proportion of the income that is produced.

Tax: Taxes are payments to the government that is required of all citizens, whether they be people or companies.

In conclusion,

Available deduction = 1200

Deduction rate = 0.24

Amount of money needed for an investment

x= 1200/0.24

x= 5000

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6 0

2 years ago

On monday, foster deposits in his account at guaranty bank a local check for $500. after 5:00 p.m. on friday, from these funds,

zhenek [66]

You can withdraw $ 200 the very next business day and rest of the remaining $ 300 on the second business day from the date of deposition of the check. On friday foster can withdraw the whole of the amount no more than deposited on monday that is $500.

Generally, if you deposit check for 200$ to a bank one can access the full amount the very next business day, whereas if the amount exceeds more than $ 200 you can partially withdraw it from the account and rest on the second business day.

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5 0

2 years ago

The following December 31, 2021, fiscal year-end account balance information is available for the Stone Corporation:Cash and cas

blsea [12.9K]

Answer:

Total current assets = $112500

Short term investments = $2300

Retained earnings = $15500

Explanation:

The total current assets can be determined using the current ratio provided for 2021. The current ratio is calculated by dividing the value of total current assets by the value of the total current liabilities.

1.5 = Total current assets / (51000 + 23000 + 1000)

1.5 = Total current assets / 75000

1.5 * 75000 = Total current assets

Total current assets = $112500

Short term investments are a part of the current assets. The value of short term investments is,

112500 = 6200 + 32000 + 72000 + Short term investments

112500 = 110200 + Short term investments

112500 - 110200 = Short term investments

Short term investments = $2300

The basic accounting equation states that the total assets is always equal to the value of total liabilities plus total equity.

Total assets = Total Liabilities + Total Equity

(112500 + 180000) = [(51000 + 23000 + 1000) + 42000] + (160000 + Retained earnings)

292500 = 117000 + 160000 + Retained earnings

Retained earnings = 292500 - 277000

Retained earnings = $15500

6 0

3 years ago