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Bezzdna [24]
3 years ago
7

John has to decide whether to buy a zero-coupon bond with very little risk that costs $950 and will pay $1085 in one year or put

his money in a savings account with an annual interest rate of 12%. Compute the difference in the rate of return of the two investments. Round your answer to one decimal place Which of the two investments will John prefer? O the savings account O the zero-coupon bond
Business
1 answer:
defon3 years ago
5 0

Answer:

Different is favorable to the zero-coupon by 2.2%

I would prefer to invest in the zero-coupon as their yield is higher

Explanation:

we divide the future value of the zero coupon with ther current market value to determinate the rate

\frac{FV}{nominal} =1 + r\\\frac{FV}{nominal} -1 = r\\\\\frac{1,085}{950} -1 = r

r = 0,14210 = 14.2%

the saving account yields 12% which is lower than the zero coupon rate thereofre I would be better to ivnest in the zero-coupon.

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Give the six steps involved in the decision making process​
krok68 [10]

Answer:

DECIDE

Explanation:

D - define the problem

E - establish the criteria

C - consider all alternatives

I - identify the best alternative

D - develop and implement a plan of action

E - evaluate and monitor the solution and give feedback when necessary

hope this helps please like and mark as brainliest

6 0
3 years ago
As of December 31, 2018, Warner Corporation reported the following: Dividends payable $ 32,000 Treasury stock 570,000 Paid-in ca
Thepotemich [5.8K]

Answer:  $9,182,000

Explanation: This question can be done as follows :-

Total shareholders equity = paid in capitals + other paid in capitals + retained earnings - treasury stock

Putting the values into equation we get :-

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8 0
4 years ago
Which of the following is considered a stage of the new-product development process
Kaylis [27]

Idea screening is considered a stage of the new-product development process.

<h3>What is New product development ?</h3>

New product development entails the  bringing up an original product idea to market.

The seven stages of New product development are :

  • ideation
  • research
  • planning
  • prototyping
  • sourcing
  • costing
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Learn more about new-product development on:

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7 0
2 years ago
Both the Army and Marine Corps have a capability need to procure additional helicopters beyond the number specified in the curre
FinnZ [79.3K]

Answer:

The cost which will determine or estimate the technique used as a basis for requesting the funding to pay for the extra aircraft is the actual cost.

Explanation:

Actual cost is the cost or the actual expenditure made for acquiring the asset and it involves the expense of supplier invoiced and in addition to the cost to set up, test the asset and deliver.

So, both the Marine and the Army corps need to procure the additional helicopters beyond the numbers specified in contract. The actual cost will be used as basis for the funding to pay.

4 0
4 years ago
Rayman Automobiles, an automobile manufacturing company, was founded in 1912. The company primarily focused on creating greater
Zielflug [23.3K]

Answer:

Production Era

Explanation:

American business history is always described using five eras that was experienced; "Industrial Revolution, the Entrepreneurship Era, the Production Era, the Marketing Era, and the Relationship Era." Rayman Automobiles was founded in the production era because of the characteristics it showed, which are similar to those in the production era. In the Production era, business were most concerned with the achievement of improving the efficiencies of their production process. This period also promoted job specialization, thereby ensuring an increase in productivity and a corresponding reduction in prices and costs.

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