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Sveta_85 [38]
4 years ago
10

1) Why might investors prefer floating rate notes over a fixed rate bond?

Business
1 answer:
sladkih [1.3K]4 years ago
8 0

Answer:

These questions are incomplete since the article relating to Hologen company is not attached. However, I would answer them this way.

Explanation:

1) A floating rate bond has a shorter duration; almost zero and it has lower sensitivity to interest rates compared to a fixed rate bond.This means that the former has a lower interest rate risk. Investors tend to demand floating rate bonds when they expect future interest rates to rise because their prices would be close to their par values as their interest rates would also increase. On the other hand, fixed bond's interest rates are inversely related to their prices.

2)

For an issuing company, borrowing money floating rates terms could be riskier for cashflow management purposes . Every time interest rates increases, it means that the company would pay higher interests to lenders which could hurt its profitability. The fluctuations could also negatively affect future financial planning unlike issuing fixed rate bonds whose coupon payments are constant hence decreasing the volatility of earnings.

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The factors of production will influence an items' Availability.
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3 years ago
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Craydye Corporation manufactures a part for its production cycle. The costs per unit for 8,000 units of this part are as follows
irakobra [83]

Answer:

Make; $72,000

Working:

Make ($106*8000)                         848,000

Buy [($120*8000 - 40,000)]           920,000

Make increases profits by              72,000

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Do you think calling an employee a subordinate will impact their motivation levels?
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Answer:

I believe that referring to the employee as a subordinate can negatively affect the employee's motivation levels.

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Although an employee is subordinate to the company owner, or to other high-ranking employees, such as a manager, for example. Referring to the employee as a subordinate can negatively affect the employee's motivation and productivity. This is because this word can pass a tone of devaluation, where the employee can understand that he is not esteemed and necessary within the company. The feeling of irrelevance, can leave the employee saddened and unwilling to do his best work within the institution.

8 0
3 years ago
suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was importe
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Suppose that last year a total of $12 billion in goods and services was exported to other countries while $8 billion was imported. Net exports equal $4 billion.

In general, real GDP is calculated by dividing nominal GDP by the GDP deflator (R). For example, if the economy's prices rise by 1% from the base year, the deflation rate is 1.01. If nominal GDP is $1 million, real GDP is calculated as $1,000,000 / $1.01 or $990,099.

Equity and bond values ​​are not included in GDP as they are not reissued annually. They may have been issued last year. Second, the stock a person buys is goods and services, and the company reuses the money invested to buy the asset, so the value is calculated twice.

Learn more about goods and services at

brainly.com/question/25125137

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8 0
1 year ago
On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of
irga5000 [103]

Answer:

Explanation:

The journal entries are shown below:

On Jan 1 - Cash A/c Dr $5,000,000

                        To Bonds Payable A/c $5,000,000,

(Being bond is issued)

On June 30 - Interest expense A/c Dr $150,000

                           To Cash A/c                                     $150,000

(Being interest paid for cash)

On December 31,  Bonds Payable A/c Dr $5,000,000

                                   To Cash A/c                            $5,000,000

(Being payment of principal is recorded on the maturity date)

8 0
3 years ago
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