In their simplest form, bonds are pure a) debt.
<h3>What are bonds?</h3>
- A bond may be a debt security, almost like an IOU.
- Borrowers issue bonds to boost money from investors willing to lend them money for a certain amount of time.
- When you buy a bond, you're lending to the issuer, which can be a government, municipality, or corporation.
- In return, the issuer promises to pay you a specified rate of interest during the lifetime of the bond and to repay the principal, also referred to as face value or par value of the bond, when it "matures," or comes due after a group period of time.
<h3>What sorts of bonds are there?</h3>
The main types of bonds are:
- Investment-grade
- Corporate bonds
- Municipal bonds
- High-yield bonds
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The net present value of this lockbox arrangement is $1,205,378.06.
Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:
- ((1370 x 880) x 1.0001) - (1370 x 0.25) = X
- 1,205,720.56 - 342.5 = X
- 1,205,378.06 = X
Therefore, the net present value of this lockbox arrangement is $1,205,378.06.
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Answer:
C
Explanation:
because I feel that many individuals would select the most basic option, such as A or B.
Answer:
current floating exchange rate
Explanation:
Exchange rate is the rate at which one currency will be exchanged with another. For example, 1 United States Dollar is equivalent to 4.24 Poland Zloty as of March 2020.
There are two common types of exchange rates:
1. Floating exchange rate: This is set by the FOREX market, and is based on the current supply and demand of currencies. When demand for a currency is high, its value increases and vice versa.
2. Fixed exchange rate: A fixed or pegged exchange rate is whereby a government entirely determines the rate and value of the currency.
Generally, a floating exchange rate system is used in the global market. This does not mean countries allow their currencies to fluctuate endlessly. The central bank of a country and it's government does intervene and manipulate the currency to make it favorable for them during international trade but it is done in a more indirect manner as opposed to a fixed exchange rate system.
Employees pay income taxes depending on the rates of the chartering state, therefore a firm may opt to charter in a state with lower income taxes if it has a physical headquarters in one state but files for incorporation in another.
<h3>What is tax?</h3>
A tax is a mandatory financial charge or other types of levy imposed by a governmental organization on a taxpayer (an individual or legal entity) in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behavior aimed at ensuring that taxpayers pay the correct amount of tax at the correct time and receive the correct tax allowances and tax reliefs. Most nations have a tax system in place to pay for public, shared social, or agreed-upon national necessities, as well as government services.
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