Assume that interest rates on 20-year treasury and corporate bonds with different ratings, all of which are noncallable, are as follows default risk differences.
The more credit danger related to an enterprise the better the fee of going back presented on its monetary contraptions, and that is reflected in the example given within the query. The T bond has the lowest chance of default due to the fact it's far assured by using the Treasury, so the return is the lowest.
The excellent-rated company bond has the bottom return among company bonds, and the worst-rated pays the best return bonds can be noncallable for a time period, giving a length of constant hobby payments to the customer after which, become callable after that period to allow the company to reset the interest fee at the debt specifically if the marketplace has changed. Noncallable security is a monetary safety that can't be redeemed early by the company besides from the fee of a penalty.
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Answer:
the allocated direct manufacturing overhead costs of Job 56 is $25
Explanation:
Overheads in manufacturing process are allocated to jobs or products using cost drivers or surrogates.
<em><u>First Step : Determine the Pre-determined Overhead rate</u></em>
Pre-determined Overhead rate = Budgeted Overheads / Budgeted Activity
= $2,000 / 800
= $ 2.50 per labor hour
<em><u>Step 2 : Determined the Amount of Overhead allocated to Job 56 based on labor hours utilised</u></em>
Overhead for Job 56 = Pre-determined Overhead rate × Hours Used
= $ 2.50 × 10
= $25
Answer:
b. increase as the demand for high tech skills increases.
Explanation:
Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.
This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.
I hope my answer helps you
Answer:
C) The federal budget deficit is the year-to-year short fall in tax revenues relative to government spending (T < G + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.
Explanation:
Budget Deficit by definition is the shortfall in the budget as spending exceeds the budgeted tax revenues for the governments. They are indeed funded by government borrowing by issuing of bonds and borrowing money from the federal reserve.
The federal government debt or also called the national debt is the net accumulation of all the borrowed amount that is used by the government to deficit finance the budget in the current year and the previous years.
In return if a budget in a year turns surplus, that is the spending is less than revenue, it can help lower the national debt if the government policies allow.
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