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marin [14]
3 years ago
6

A zero coupon bond: is sold at a large premium. can only be issued by the U.S. Treasury. has a market price that is computed usi

ng semiannual compounding of interest. has less interest rate risk than a comparable coupon bond. has a price equal to the future value of the face amount given a positive rate of return.
Business
1 answer:
kupik [55]3 years ago
5 0

Answer:

A zero coupon bond:

A. is sold at a large premium.

B. has a price equal to the future value of the face amount given a positive rate of return.

C. can only be issued by the U.S. Treasury.

D. has less interest rate risk than a comparable coupon bond.

E. has a market price that is computed using semiannual compounding of interest.

Answer is : B

Explanation:

In classification of bonds we have a unique type of bond known as Zero-coupon bonds also know as Pure discount bonds, unlike traditional bonds they don’t pay coupon instead they are sold on discount basis and on maturity the bondholder receive a par value, for this reason the price will be at a discount on sale and on maturity be redeemed at par price showing a positive rate of return.

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Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also assume that in 1984 each bucke
BabaBlast [244]

Answer:

I dont know but good-luck o the other person that knows the answer. Please dont report this

Explanation:

4 0
3 years ago
Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand
defon

Answer:

Explanation:

Fixed costs - will remain similar no matter of output amount

Variable costs - vary with the change in output

Average cost=(Fixed cost(FC) + Variable cost(VC))/number of units produced

VC = VC per cup of coffee served *cup of coffee served in a week

Total Cost(TC)= FC+VC

Average cost=TC/Cup of coffee served in a week

1. Let's calculate for 2000 cups of coffee:

FC remain the same! = $1200

VC=0.22*2000= $440

TC=FC+VC= 1200+440= $1640

Average cost of 1 cup of coffee= TC/#of cups=1640/2000=$0.82

2. Calculation for 2100 cups:

FC=1200

VC=0.22*2100=462

TC=1200+462=1662

Av cost=1662/2100=0.79

3. Calculation for 2200 cups:

FC=1200

VC=0.22*2200=484

TC=1200+484=1684

Av cost=1684/2200=0.77

As the number of cups increased from 2000 to 2100, the average cost per cup devreased 0.82 to 0.79. Then when number of cups increased to 2200, average cost decreased to 0.77. The reduction is due to the variable cost

4 0
3 years ago
During its first year of operations, Mack's Plumbing Supply Co. had sales of $3,250,000, wrote off $27,800 of accounts as uncoll
ArbitrLikvidat [17]

Answer:

482.500

Explanation:

With the direct write-off method all accounts when detected as uncollectible, the amount of the client's debt is charged to the expense, while an estimate is made with the allowance method (this method is the most accepted accounting)

The direction of these methods in this case is translated in this way

allowance method 3,250,000 X 1% = 32,500.

Direct writte off 27,800

The difference between these values, which is 4,700, corresponds to a higher forecast, therefore, to a higher expense for the year, so that the net result will be reduced

Net result 487,500 minus 4,700 = 482,800

3 0
2 years ago
Annual production and sales level of Product A is 34,300 units, and the annual production and sales level of Product B is 69,550
ELEN [110]

Answer:

$3.00

Explanation:

Calaculation of the approximate overhead cost per unit of Product A under activity-based costing:

The first step is to calculate for the Activity 1 allocated to Product A line which is :

$87,000 × 3,000/5,800

=$261,000,000/5,800

=$45,000

The second step is to calaculate for Activity 2 allocated to Product A line which is :

$62,000 × 4,500/10,000

$279,000,000/10,000

=$27,900

The third step is to calculate for Activity 3 allocated to Product A line which is :

$93,000 × 2,500/7,750

=$232,500,000/7,750

=$30,000

The total overhead allocated to Product A

$45,000+$30,000+$27,900

= $102,900

Overhead per unit of Product A: $102,900/Annual production of 34,300 units

= $3.00

Therefore the approximate overhead cost per unit of Product A under activity-based costing will be $3.00

4 0
3 years ago
We have said that strategic management is an evolution and a destination. What does this mean? Discuss in detail
damaskus [11]

Explanation:

Strategic management is an evolution and a destination due to the fact that the organizational strategy is developed in pursuit of objectives and goals. This means that action plans for achieving goals can be changed according to internal or external interference.

A company's strategy is not inert, so strategic management will be carried out according to the market situation, the internal environment and other variables, so that there is monitoring, organization and strategic coordination of the company according to its environment.

4 0
3 years ago
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