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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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Veronika [31]

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The marketing planning process is a methodical strategy for achieving marketing objectives. The marketing planning process includes the following steps: scenario analysis, goal-setting, strategy formulation, action programme development, implementation, control, review, and assessment. All of the managerial tasks of the company are coordinated with the aid of marketing planning process. In order to accomplish the general aims and goals of the company, it not only assists in coordinating the work of its own department but also in coordinating the managerial operations of every other department. Market penetration strategy, market development strategy, product development strategy, and diversification strategy are the four different types of the marketing planning processes.

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7 0
2 years ago
The use of simulation to create an aggregate plan:
12345 [234]

Answer:

Answer is option b i.e. will produce a plan that may not be the best plan.

Explanation:

Simulation is the technique used to create an artificial environment that is similar to the real-life situation to study various problems and how to tackle them. However, it is not the full proof plan which means it is based on certain probability and chances that a certain situation might arise. Many times situations are not as planned and here we cannot solely depend on the solution that we have learned during the simulation process. Therefore, the simulation will provide us with a plan that may or may not be the best plan.

6 0
3 years ago
U.S. imports are​ _____ produced in​ _____ and sold in​ _____. A. goods and​ services; any other​ country; the United States B.
maks197457 [2]

Answer:

The correct answer is option A.

Explanation:

US imports refer to the goods and services that are produced in some countries other than the US. These goods are then sold in the US. The imports for the US are exports for the country that is producing those goods and services.

While the goods and services that are produced in the US and sold in some other country are exports for the US and imports for the purchasing country.

6 0
3 years ago
On January​ 1, 2018, Brazos Company purchased equipment and signed a sixminusyear mortgage note for $ 186 comma 000 at 15​%. The
kifflom [539]

Answer:

The journal entry to record the first installment payment will include a​ debit to interest expense of $27,900, mortgage notes payable of $21,248 and a credit to cash account of $49,148

Explanation:

For recording the first installment payment, we have to compute the interest amount which is given below:

Interest amount = value of Mortgage note × rate × year

                           = $186,000 × 15% × 1 year

                           = $27,900

Since we have to compute the installment for January​ 1, 2019, therefore, we take the one year period

Now, we have to compute the principal amount which equals tp

= Installment amount - interest expense

= $49,148 - $27,900

= $21,248

So, the journal entry would be

Interest expense A/c Dr             $27,900

Mortgage note payable A/c Dr   $21,248

    To Cash                                                       $49,148

(Being payment of the first installment recorded)

7 0
3 years ago
Which of the following concepts requires that economic data be recorded in dollars in the United States?
s344n2d4d5 [400]

Answer:

Unit of measure concept  

Explanation:

The definition for a unit of measure refers to a common principle used throughout accounting, whereby all activities should be reported uniformly using the same currency. For instance, a business that holds its documents in just the U.S. will report its whole dealings in U.S. dollars, whereas a German company will report all its payments in euros.

If a transaction includes transactions or transfers in another currency, the sum is translated until being registered to the domestic currency utilized by an entity. Without a specific standard unit, financial reports will be impossible to generate.

4 0
3 years ago
Read 2 more answers
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