Answer:
the cpi has understated the cost of living because of quality improvement bias
Answer:
The difference between two securities is 0.89%.
Explanation:
Inflation premium for the next three and five years:
Inflation premium (3) = (1.6% + 3.05% + 3.85%) ÷ 3
= 2.83%
Inflation premium (5) = (1.6% + 3.05% + 3.85% + 3.85% + 3.85%) ÷ 5
= 3.24%
Real risk-free rate = 2.35%
Since default premium and liquidity premium are zero on treasury bonds, we can now solve for the maturity risk premium:
Three-year Treasury securities = Real risk-free rate + Inflation premium (3) + MRP(3)
6.80% = 2.35% + 2.83% + MRP(3)
MRP (3) = 1.62%
Similarly,
5-year Treasury securities = Real risk-free rate + Inflation premium (5) + MRP(5)
8.10% = 2.35% + 3.24% + MRP(3)
MRP (5) = 2.51%
Thus,
MRP5 - MRP3 = 2.51% - 1.62%
= 0.89%
Therefore, the difference between two securities is 0.89%.
A creditor who extends credit to a consumer to purchase a consumer good under a written security agreement obtains a<u> "purchase money" </u>security interest in the consumer good.
A purchase money security interest (PMSI) is a legitimate claim that enables a lender to repossess property financed with its loan or demand repayment in real money if the borrower defaults. It gives the lender need over other creditors cases.
A PMSI is utilized by some commercial lenders and credit card guarantors just as by retailers who offer financing alternatives.
Answer:
36.26%
Explanation:
Simple rate of return:
return/investment
<u>return:</u>
In this case, it will be the cost saving for the new machine: 161,000
<u>investment</u>
We will decrease the investment by the recovery from the old machine.
468,000 new machine - 24,000 salvage value of new = 444,000
<u>Then, proceed to calculate:</u>
161,000/444,000 = 0.3612 = 36.26%
Consideration:
Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.
Answer:
(A) June 4
Inventory debit 1,065
Accounts Payable credit 1,065
(B) June 15
Inventory debit 1,550
Cash credit 1,550
(C) June 30
Accounts Payable debit 1,065
Cash credit 1,065
Explanation:
(A) there is no information or suggestion that Lweis will take the discount, we post as it was nominal, if later on it is paid within the discount period, we will recognize it. <u>No discount is recorded</u>
(B) Simple: increase the inventory receive and decrease cash by the amount paid.
(C) We settle the account payable for the nominal of the purchase.
It wasn't within the discount period. So <u>no discount is granted.</u>