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julia-pushkina [17]
2 years ago
7

A 30-year 7% corporate bond was issued exactly 10 years ago. You purchased this bond today, when it was trading to yield 9%. Tom

orrow, the yield decreased down to 6%, only to increase to 11% after 10 years. At maturity, the bond’s realized yield must be equal to 7%.
A. True
B. False
Business
2 answers:
Alik [6]2 years ago
7 0

Answer:

B) false

Explanation:

Realized yield is the actual return that an investment yielded during the time period that the investor held it.

Using an excel spreadsheet I determined the price of the bond (81.74), but it is not really relevant. Since I will hold the bond during 20 years until maturity, the bond will yield 9% until maturity, so that means that the realized yield of my investment was 9%, not 7%. The realized yield depends on the price at which you bought the bond and the time you hold it. If someone bought the bond in 10 years and held it to maturity, their realized gain will be 11%.

sergiy2304 [10]2 years ago
3 0

Answer:

The answer is "B"

False

Explanation:

At maturity the bond’s realized yield can not be equal to 7% because of the uncertain future interest rate.

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Which of the following is not true of taxable asset purchases?
shutvik [7]

Answer:

e. None of the above

Explanation:

The taxable asset purchases allows the individual to increase or step up the tax basis of acquired assets so as to reflect the price of the purchases made.

If one buy an assets, then he or she wants to allocate total purchase price in a way which gives a favorable postacquisition tax results.

In case of taxable asset purchases, the tax credits or the net operating losses cannot be transferred from the target firm to the acquiring firm.

6 0
2 years ago
Ming Chen began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During Jun
Leya [2.2K]

Answer:

The accounting equation holds as follows:

Asset = Liabilities + Equity = $80,000

Explanation:

Note: See the attached excel file for the analysis of the Effect of June Transactions on the Accounting Equation

From the last balances in the attached excel file, we have:

Assets = Cash + Receivable + Equipment = $41,000 + $8,000 + $31,000 = $80,000

Liabilities = Payable = $0

Equity = M. Chen, Capital - M. Chen, Withdrawals + Revenue - Expenses = $75,000 - $1,000 + $10,500 - $4,500 = $80,000

Liabilities + Equity = $0 + $80,000 = $80,000

Therefore, the accounting equation holds as follows:

Asset = Liabilities + Equity = $80,000

Download xlsx
4 0
2 years ago
systems play a key role in helping organizations achieve goals, which are set forth in a(n) statement. Computers can be used by
Sergio [31]

Answer:

The following are those which helps in playing a key role in helping organizations to achieve their goals:

O. Computers can be used by people at all levels of an organization.

O. Workers use information systems to produce and manipulate information.

O. Managers depend on information systems to supply data that is essential for long-term planning and short-term tactical planning.

O. A decision system helps workers and managers make non-routine decisions by constructing decision models that include data collected from internal and external sources.

O.  A(n) engine evaluates the facts and rules to produce answers to questions posed to the system.

O. Using a technique called logic, these systems can deal with imprecise data and problems that have more than one solution.

Explanation:

8 0
3 years ago
Although, as a manager, Anette may not have the best technical skills, she makes up for it through her excellent communication,
dmitriy555 [2]

Answer:

A. human skills

Explanation:

Human skills -

It refers to the type of skills which a person have , giving the person excellent ability to interact , communicate with the team , in order to complete the project or assignment on time , is referred to as human skills .

The method enables the person to be one of the best manager , as helps , motivate and connect with the employees very efficiently , and hence the employees in turn gives their best result with proper handwork .  

Hence , from the given scenario of the question ,

The correct answer is human skills .

6 0
3 years ago
Name the parties involved in insurance?
sdas [7]

Answer:

Insured.

Policy Owner.

Beneficiary.

Insurance Company.

Agent/Broker.

Underwriter.

Medical Examiner. » Compare: Term life insurance quotes.

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