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3 years ago

Bond price volatility varies directly with the term to maturity and directly with the coupon. Group of answer choices True False

Business

1 answer:

Reptile [31]3 years ago

5 0

Answer: False

Explanation:

Bond Price Volatility does indeed have a positive relationship with term to Maturity because the longer the term to Maturity, the more the bond can be affected by interest rates which will lead to price changes.

However, Bond Price Volatility has an Indirect relationship with Coupon rates. The higher the Coupon rate, the lower the volatility because interest rates affect bonds that are paying lower coupons more than they do high ones. Having a higher coupon bond means that price does not change as much due to interest rates.

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Airline Accessories has the following current assets: cash, $96 million; receivables, $88 million; inventory, $176 million; and

garri49 [273]

Answer and Explanation:

The computation of the current ratio and the acid ratio is shown below:

The current ratio is

= Current assets ÷ current liabilities

= ($96 + $88 + $176 + $12) ÷ ($86 + $29)

= $372 ÷ $115

= 3.23 times

And, the quick ratio is

= Quick assets ÷ current liabilities

= ($372 - $176) ÷ ($86 + $29)

= $196 ÷ $115

= 1.70 times

Hence, the current ratio and the acid-test ratio is 3.23 times and 1.70 times respectively

5 0

3 years ago

A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat

jonny [76]

Answer:

The percentage decrease in utilization is 83.33%

Explanation:

According to the data, we have the following:

Coefficient of variance, m = 3

Arrival rate, ra = 45 per hour

Service rate, re = 18 per hour per lane

Therefore, in order to calculate the percentage decrease in utilization when one more checkout lane is added to the system, we have to use the following formula:

So, percentage decrease in utilization = ra / (m.re)

= 45 / (3*18) = 0.833

The percentage decrease in utilization is 83.33%

3 0

3 years ago

A company borrowed $19,000 by signing a 180-day promissory note at 10%. The maturity value of the note is: (Use 360 days a year.

emmasim [6.3K]

Answer:

$950

Explanation:

Calculation to determine what The maturity value of the note is:

Maturity value of the note=$19000*10%*180/360

Maturity value of the note=$950

Therefore The maturity value of the note is: $950

6 0

3 years ago

Use the following data to calculate the cost of goods sold for the period:

PtichkaEL [24]

Answer:

The cost of goods sold for the period is:

= $250,600.

Explanation:

a) Data and Calculations:

Beginning Raw Materials Inventory $30,600

Ending Raw Materials Inventory 70,600

Beginning Work in Process Inventory 40,600

Ending Work in Process Inventory 46,600

Beginning Finished Goods Inventory 72,600

Ending Finished Goods Inventory 68,600

Cost of Goods Manufactured for the period 246,600

To determine the cost of goods sold:

Beginning Finished Goods Inventory $ 72,600

Cost of Goods Manufactured for the period 246,600

Cost of goods available for sale $319,200

Ending Finished Goods Inventory (68,600)

Cost of goods sold $250,600

4 0

3 years ago

Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel P

svlad2 [7]

Answer:

E-travel-1.15

Pricecheck-0.38

Explanation:

Debt to equity ratio compares the finance provided by outsiders viz-a-viz that which is provided by the original owners of the company,the shareholders, in order to determine whether or not the company is at risk of slow growth if outsiders withdraw their funds.

Debt to equity=total liabilities/equity

E-Travel:

total liabilities is $2,854,475

total equity $2,482,681

debt-equity ratio=$2,854,475/$2,482,681=1.15

Debtholders provided more capital funding than the stockholders

Pricecheck:

total liabilities is $472,610

total equity is $1,257,614

debt-to-equity ratio=$472,610/$1,257,614 =0.38

4 0

3 years ago