Answer:
The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting
Explanation:
Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives.
Answer:
The correct answer is b) The first tranche has the highest prepayment risk.
Explanation:
A collateralized mortgage obligation (CMO) is a type of security backed by mortgage. It is comprised of a pool of mortgages that are bundled together and sold as an investment. Prepayment risk is the risk of loss of interest income due to early repayment of the principal by the borrower.
In the given situation, there are three tranches. The first tranche has the highest prepayment risk because it is receiving principal at the earliest. Hence, there is more of a chance of this principal being returned early and the CMO holder losing out on potential interest. Therefore, the prepayment risk of the first tranche is the highest among all three tranches.
Answer:
Explanation:
The main goal is to compare these two based on the same terms; present values. Find the present value of $500 today by discounting it using 10% interest rate over two years.
PV = FV/ (1+r)^n
where FV = Future value = $500
r = discount rate = 10% or 0.10 as a decimal
n = total duration of investment = 2
PV = $500/(1+0.10)^2
PV = $500/1.21
PV = $413.22
Since you are basing the decision on what you would rather pay, you would want a lower pay amount. The $425 is already in its present value terms and it is more expensive. Therefore, you would prefer to pay $500 in two years.
Blood group b shold constrentect
The five economic activities are:
producing, exchanging, consuming, saving, and investing.
100% Correct on Gradpoint :)
