In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.
<h3>What is
interest reinvestment risk?</h3>
Reinvestment rate risk can be described as the risk that should be considered in the case whereby the investor have the reason to carry out reinvestment in regards with the future cash flows which could come inform of a lower return as a result of the interest rate declines.
It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.
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The Bay of Pigs Invasion was a foreign policy embarrassment for the Kennedy Administration.
When John Kennedy assumed the presidency after Dwight Eisenhower, he was faced with the pressure to act on Cuban dictator Fidel Castro's growing relationship with the Soviet Union (yet another of US' formidable enemies).
His senior advisers urged him to authorize the attack on Cuba and initiate a movement to overthrow Fidel Castro. This played on Kennedy's foreign principle which is for Democratic countries such the US to show a strong force against dictatorships like Castro's. In April 1961, the invasion at the Bay of Pigs failed extremely. Castro was quick to mobilize his militia to counter Kennedy's botched plan. Aside from this, Kennedy made some worst decisions that nailed the coffin shut. Thus the Kennedy Administration suffered a lot of damage due to this failure.
Answer:
The correct answer is letter "D": The use of a higher estimated life and a higher residual value will lower the annual amount of depreciation expense recognized on the income statement.
Explanation:
Depreciation distributes the cost and cost over the useful life of the assets of tangible and real assets. A business could depreciate an asset over a period of up to thirty years, depending on the type of asset it is. There are many depreciation methods but, among the most common we can find the <em>Straight-line method, the Double Declining Balance method</em>, and <em>the Units of Production method</em>. As long as the estimated life of the asset and its residual value is high, the amount filed for the depreciation will be lower.
Answer:
$880.31
Explanation:
Here for computing the new price of the bond we use the present value formula i.e. to be shown in the attachment
Given that,
Assuming Future value = $1,000
Rate of interest = 8.6% ÷ 2 = 4.3%
NPER = 8 years × 2 = 16
PMT = $1,000 × 6.5% ÷ 2 = $32.50
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the new price of the bond is $880.31
Answer:
d. Group Norm
Explanation:
Group Norms are informal rules that generally discourage behaviors that impede the efficacy of a group and and encourage the group to work efficiently.
They are regulations that groups adopt that ensure some form of order and they are also a reflection of the expectation of members of the group should interact and work.
Here, agreeing that members of the group will only discuss group-related matters at 1pm on Wednesdays is an example of a Group Norm because;
1. It is an unwritten rule
2. It is majorly to ensure that order is maintained so that the purpose of the group remains undefeated.
