If you are aware of a scam, you should call the Federal Trade Commission. True or False

Bond A and Bond B both have 16 years to maturity and a face value of $1,000. Bond A has a 2.50% coupon while Bond B has a 5.5% c

r-ruslan [8.4K]

Answer:

Bond's A price will decrease by 27.09%

Bond's B price will decrease by 24.25%

Explanation:

Bond's A current price: should be 1,000, since he market price = coupon rate

Bond's B current price: using an excel spreadsheet we can calculate the net resent value: =NPV(2.5%,55... fifteen times,1055) = $1,391.65

If the market rate increases to 5%

Bond's A current price: using an excel spreadsheet we can calculate the net resent value: =NPV(5%,25... fifteen times,1025) = $729.06

Bond's B current price: using an excel spreadsheet we can calculate the net resent value: =NPV(5%,55... fifteen times,1055) = $1,054.19

Bond's A price will decrease by: [($729.06 - $1,000) / $1,000] x 100 = -27.09%

Bond's B price will decrease by: [($1,054.19 - $1,391.65) / $1,391.65] x 100 = -24.25%

3 0

3 years ago

Identify a major transportation problem in any vicinty in ghana or the world (safety, infrastructure, vehicles, policies and so

podryga [215]

The Major problem facing transportation in Ghana and around the world is the human capital and infrastructural issues.

<h3>Human Capital</h3>

The importance of Human capital cannot be overemphasized in curbing the problems of transportation in Ghana and the world at large. Human capital must interface with physical capital to bring about good transport systems because physical capital will always remain out of existence without the input of human capital.

<h3>Infrastructure</h3>

Transport infrastructure is generally lacking in Ghana and sub-Saharan Africa. There is absence of well developed and functional infrastructure to drive the transport system. Such infrastructure include fast trains, durable roads etc.

Learn more about Transport Infrastructure at brainly.com/question/7152577

#SPJ1

8 0

1 year ago

PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in

Ann [662]

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet $4,096.

<u>Given Data provided in the question:</u>

<u> Current Year</u> <u>Preceding Year</u>

Total long term-debt <u> $27,917</u> <u>$26,557 </u>

Current portion <u>(</u><u>4,096)</u> <u>(2,224)</u>

Long-term debt <u>$23,821</u> <u>$24,333</u>

Now,

The long-term debt was disclosed as a current liability on the current year's December 31 balance sheet will be the amount equal to the current portion for the current year

Therefore, the answer is $4,096

<h3>What is Current Liability?</h3>

A current liability is:

An obligation that will be due within one year of the date of the company's balance sheet, and
Will require the use of a current asset or will create another current liability

However, if a company's normal operating cycle is longer than one year, current liabilities are the obligations that will be due within the operating cycle.

Current liabilities are usually reported as a separate section of a company's balance sheet. This allows readers to subtract their total from the company's total amount of current assets in order to determine a company's working capital. (Dividing current assets by the current liabilities is the company's current ratio.)

Your question is incomplete, but most probably your full question was:

PepsiCo, Inc. (PEP) reported the following information about its long-term debt in the notes to a recent financial statement (in millions): Long-term debt consists of the following: December 31 Current Year Preceding Year Total long term-debt $27,917 $26,557 Current portion (4,096) (2,224) Long-term debt $23,821 $24,333 a. How much of the long-term debt was disclosed as a current liability on the current year's December 31 balance sheet.

Learn more about Current liabilities on:

brainly.com/question/17367380

#SPJ4

8 0

1 year ago

Internal resources, such as the legal department, training department, information technology department, tend to be under-utili

bixtya [17]

Answer:

b. All of the answers are correct.

Explanation:

Death Spiral is a situation when a company's goods or services produced are declining and fixed cost is same. The company will be exposed to a burden of fixed cost if its output is reduced.

In this question the various departments of a company are underutilized. The fixed price allocated to each department will be same hence creating a burden on a company's funds. Managers may decide to reduce the services they use to reduce the cost of their department. The internal pricing system will start recovering the sunk cost of company. Managers will also consider purchasing services internally or externally whichever is cost effective. All of the statements are correct there b is correct option.

7 0

3 years ago

Jay received the following fair market value amounts during the current year: Interest on Montgomery County bonds (used to build

UNO [17]

Answer:

$300

Explanation:

Given that :

Jay received the following fair market value amounts during the current year:

Interest on Montgomery County bonds

(used to build a bridge) $100

Interest on U.S. Treasury notes $200

Gain on sale of Montgomery County bonds $300

Common stock dividend in IBM Corporation

- common stock (no cash option) $400

From the above amounts that Jay received during the current year;

The following are free from an obligation and liability imposed as a result of tax.

1. Interest on Montgomery County bonds (used to build a bridge)

2. Interest on U.S. Treasury notes

3. Common stock dividend in IBM Corporation common stock (no cash option)

So; we can say they are not taxable

BUT only Gain on sale of Montgomery County bonds which is $300 only taxable

Thus, The amount of taxable income Jay should report from the above amounts is $300

6 0

3 years ago