Answer:
Interest Rate Collar
Explanation:
This strategy called the Interest Rate Collar.
The Interest rate collar is an option that is used to hedge the interest rate exposure. It protects the borrower from the risk of increasing the interest rate and also decided a floor declining rate by purchasing an interest rate cap.
In the given scenario the Miami Bank will receive when the interest rate crosses the cap of 11% and pay when there is a decrease below the floor rate of 8% on the principal value.
a example is a store like Lowes, or home depot
Answer:
b. Nina will prefer L to M.
Explanation:
Convex utility of wealth indicates that an individual tends to be comfortable with taking risks.
A concave utility function shows an aversion for risk.
A mean preserving spread occurs when one variable has greater variance than another but they both have the same mean.
In the given scenario prospect L will have a greater variance than prospect M since it is a mean preserving spread.
Given Nina's risk taking preference she will most likely take prospect L that offers more variability over prospect M
Answer:
D.
Other financing uses control
$1,500,000
Explanation:
Given that
Total cost of a new village hall = $4,500,000
Transferred balance = $1,500,000
Issue of bond sold at face value = $3,000,000
By considering the above information, the account and amount reported for the General fund is as follows
The transferred balance i.e $1,500,000 is shown in the other financing uses control account which denotes the operating transfer and the $3,000,000 should be recognized as a fund for capital project in a other financing sources control account
Hi pupil here's your answer ::
_____________________________
✴The full form of WAN is =》 Wide Area Network .
_____________________________
hope that it helps. . . .
