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4 years ago

Definition of collateral

Business

2 answers:

Romashka [77]4 years ago

8 0

Collateral- Something pledged as security for repayment of a loan, to be forfeited in the event of a default.

salantis [7]4 years ago

6 0

^^^ I agree have read it over that answer is 100 percent correct

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Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three ye

3241004551 [841]

Solution:

Each bonds have a 7 percent coupon limit. Since sales are also equivalent to 7 percent with par with YTM. The age of Bond Sam is three years and the maturity of Bond Dave is sixteen. At a sudden increase of 2%, interest rates. Decide the shift in both bond price by percentage.

Bond Sam:

Bond Value = pv(rate,nper,pmt,fv)

Rate = (7%+2%)* 1/2 = 4.5%

nper = 3*2 = 6

fv = 1000

pmt = 7%*1000*1/2 = $35

Bond Value = -pv (4.5%,6,35,1000)

Bond Value =$936.65

Percentage change in the price of Bond Sam = (936.65-1000)/1000 Percentage change in the price of Bond Sam = -6.33%

Bond Dave:

Bond Value = pv (rate, nper, pmt, fv)

Rate = (7%+2%)*1/2 = 4.5%

nper = 16*2 = 32

fv = 1000

pmt = 7%*1000*1/2 = 35

Bond Value = pv (4.5%,32,35,1000)

Bond Value = $854.66

Percentage change in the price of Bond Dave = (854.66-1000)/1000 Percentage change hi the price of Bond Dave = -14.53%

4 0

4 years ago

At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,48

scoray [572]

Answer:

The total production engineering cost per machine-hour, at an activity level of 8,800 machine-hours in a month: $107.7

Explanation:

At an activity level of 8,400 machine-hours in a month, Curt Corporation's total variable production engineering cost is $732,480.

Variable production engineering cost per unit = $732,480/8,400 = $87.2

At an activity level of 8,800 machine-hours in a month, total fixed production engineering cost is $180,400 - not changing.

Total variable production engineering cost = $87.2 x 8,800 = $767,360

Total production engineering cost = Total variable production engineering cost + total fixed production engineering cost = $767,360 + $180,400 = $947,760

Total variable production engineering cost per machine-hour = $947,760/8,800 = $107.7

7 0

4 years ago

What characteristic of water accounts for the fact that coastal regions do not experience such large temperature variations as l

Advocard [28]

Answer:

Option D; WATER HAS A LARGE HEAT CAPACITY.

Explanation:

Heat capacity is the amount of energy required to raise the temperature of a substance by 1°C. This activity demonstrates that water has a higher heat capacity than water.

A large body of water has a higher heat capacity than land, meaning it takes more energy to warm and cool the temperature of water.

Everyday, the land heats much faster than the sea and every night the land cools faster. When the land heats up, the air above it heats up as well. On the other hand, the ocean heats up and cools down relatively slowly. Therefore, areas near the ocean generally stay cooler during the day and have a more moderate temperature range than inland areas.

The characteristic of water that accounts for the fact that coastal regions do not experience such large temperature variations as landlocked areas is that WATER HAS A LARGE HEAT CAPACITY.

4 0

4 years ago

When lisa and loretta santiago ran away from home a second time, frank haines made temporary arrangements for them to receive ca

Lana71 [14]

D. The child protective service unit.

In this case study, the arrangements were made through CPS because the children had been absent from school for years and then ran away from home.

8 0

3 years ago

A monthly fixed rate mortgage payment

elena55 [62]

B, it's a steady mortgage rate that won't change.

3 0

3 years ago

Definition of collateral​

Definition of collateral