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Igoryamba
3 years ago
12

Suppose the bond has 10 year to maturity, and the bond has a 5% yield (that is, annual return). what price does this bond sell f

or? what if the yield of the bond is 6%?

Business
1 answer:
Over [174]3 years ago
3 0
Amoreandrusamoreandrus

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One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that is sold for $3.00 to consumers. A second
Phoenix [80]

Answer:

The correct answer is option b.

Explanation:

GDP is a measure of economic growth that shows the level of final goods and services produced in an economy in a year. It includes only final goods and services, intermediate goods are not included.  

So here the value of flour used to make bread will not be included as it is an intermediate good. But the value of bread will be included. The value of the second bag of the floor will be included as it is a final good sold to the consumer.  

Increase in GDP

= $3 + $2

= $5

8 0
3 years ago
A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note
Leokris [45]

Answer:

The note payable will be presented in the financial statement at the face amount minus a discount calculated at the imputed interest rate.

Explanation:

The imputed rate is the rate at which the present value of the face amount of the note will be equal to the amount at which it is originally recorded.  

Notes issued or received in exchange for goods or services that do not bear interest at a fair rate are reported at an amount equal to the fair value of the note, the fair value of the goods or services, or the present value of the note using a fair interest rate, whichever is more readily determinable.  

The difference between the recorded amount and the face value is considered a discount and the applicable interest rate regardless of which method is used to value the note.

Because of this, the note is reported at its face amount minus a discount calculated at the imputed interest rate.

3 0
3 years ago
What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real
matrenka [14]

Answer:

Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.

For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.

Initial outlay $100

NCF year 1 = $40

NCF year 2 = $40

NCF year 3 = $40

Using the real discount rate, the NPV = $8.93

Using the nominal discount rate, the NPV = -$0.53

6 0
2 years ago
Yellow Co. spent $12,000,000 during the current year developing its new software package. Of this amount, $4,000,000 was spent b
earnstyle [38]

Answer:

devopment expense                                   4,000,000

software package depreicaiton expense 2,000,000

training employees expense                     <u>      50,000</u>

Total expenses                                            6,050,000

Explanation:

the cost before the knowledge of future benefit will come for the development of the software  is treated as expense. The reasoning behind this is the potential uncertainty about the furture at this time. The company didn't know about the likelihood of future benefits.

The toher 8,000,000 million will be amortize over a 4-year period:

8,000,000 / 4 = 2,000,000 depreciation expense

The training wil be considered expense for the period.

4 0
3 years ago
Acme inc. has a mission statement that is open to interpretation. many stakeholders identify with it. their mission statement is
shtirl [24]
Thank you for posting your question here at brainly. I hope the answer will help. The mission statement "Acme inc. has a mission statement that is open to interpretation. Many stakeholders identify with it." is <span>ambiguous.</span>
5 0
3 years ago
Read 2 more answers
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