Answer:
The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Explanation:
the duration of the perpetuity = (1+YTM)/YTM
= (1+0.04)/0.04
= 26 years
the weights of the bonds = w
5*w + 26*(1-w) = 15
5*w + 26 - 26*w = 15
21*w = 11
w = 0.52
Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
As DVDs become popular as a substitute for the video cassettes, we will be expecting that the demand for the video cassettes will likely to "decrease". People found out and observed that DVDs has a better performance and can produce a good quality of sound. The prices of the two almost the same but the quality are different.
Answer:
Paid -in Excess capital as on December 31, 2021 $124 million
Explanation:
The computation of the amount reported as a additional paid-in capital is shown below
For Jan 1, 8 million × $15 $120 million
For June 3, 2 million × $18 ($36 million)
For December 28, 2 million × $20 $40 million
Paid -in Excess capital as on December 31, 2021 $124 million
Answer:
Budget deficit / Fiscal deficit
Explanation:
At the start of the year, every government prepares a budget e.g. all sources of revenue (direct taxes, indirect taxes, aids etc) and projected expenses are also mentioned (development of society, defense etc.).
When a government spends more than its revenue from taxes so it means that government is running a budget deficit or a fiscal deficit which are covered through fiscal measures by government e.g. increasing taxes or reducing public spending.
