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Maslowich
3 years ago
6

T-Bills are a security whose price can vary in the market where they are bought and sold after they are auctioned to the investi

ng public by the U.S. Treasury. This is much like stock prices -- their price varies over time (though, usually, bond prices are less volatile than stock prices). Say that you own a 1-year T-Bill that you purchased it 6 months ago and will hold it to maturity. Today, interest rates rose. Which one of the following is correct regarding the T-Bill that you own? A. What you earn on this security would decline as a result of the change in interest rates. B. What you earn on this security would rise as a result of the change in interest rates. C. What you earn on this security would not change as a result of the change in interest rates.
Business
1 answer:
natka813 [3]3 years ago
7 0

Answer:

C. What you earn on this security would not change as a result of the change in interest rates.

Explanation:

The increase in the interest rate will decrease the price of the T-Bill if you want to sell it to another investor, but what you will earn with the security will not change at all. Your earnings in dollars = interest rate paid by the T-Bill or any other type of bond.

If you buy and sell securities for a living, then a change in the interest rates can make you win or lose money, since the price of the securities will increase or decrease. If interest rates increase, the price decreases. But if you invest on a security to earn the coupon or interest rate that it pays, a change in the price will not affect you because you already own it. The opportunity cost of holding the security might change, but the accounting revenues will not.  

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Beginning inventory, purchases, and sales for Product XCX are as follows:
9966 [12]

Answer:

Cost of merchandise sold = $483 , Closing stock = $227

Explanation:

Perpetual inventory system includes updates done, when sale or purchase transaction happens

Opening Stock = 26 units (price 15). Value = 26 x 15 = 390

Sale = 13 units, price 15. So, sales cost value =  13 x 15 = 195  

Purchase = 20 units (price 16). Value = 20 x 16 = 320

Sale = 18 units, price 16. So, sales cost value = 18 x 16 = 288

Total sales cost value, or cost of merchandise sold = 195 + 288 = 483

Closing stock = Opening stock + purchase - sales cost

= 390 + 320 - 483

= $227

4 0
3 years ago
Marlena acquired the following new assets during 2017:
Mila [183]

Answer:

(A) Half-year and (D) Half-year

Explanation:

MACRS stands for Modified Accelerated Cost Recovery System and is the most commonly-used tax depreciation method .Without getting into too much detail, MACRS is accelerated depreciation that allows for a larger deduction while the asset is still new. By comparison, straight-line depreciation gives you the same deduction year after year over the asset's useful life. MACRS cannot be used for intangible property, nor can it be used to depreciate. MACRS convention determines the number of months for which you can claim depreciation during a partial year, either when you first placed the asset in service or when you disposed of it. The mid-month convention only applies to residential rental property, nonresidential real property, and railroad grading or tunnel bore. It simply means that you get a half month's worth of depreciation no matter when that asset was placed into (or taken from) service during that month, whether that was at the beginning, middle, or end of the month.  The half-year convention works the same way but instead of the month it goes by the year. In other words, you'll get 6 months' depreciation if the asset was placed into service or disposed of during the year, no matter if it was in January or December.

5 0
3 years ago
Julia, an economics professor, is giving a presentation on her research. What presentation delivery method should Julia use if s
Alex
Webcast :) i believe is the answer
8 0
3 years ago
Read 2 more answers
Defining the organizational mission forces managers to identify ________.
quester [9]
To identify what the organization is in business to do.
5 0
3 years ago
Student tuition at ABC University is $250 per semester credit hour. The state supplements school revenue by matching student tui
Alex787 [66]

Answer:

2.46

Explanation:

Given:

Student tuition at ABC University per semester credit hour = $250

Average class size = 30

Labor costs per class = $3,000

materials costs per student per class = $10

overhead costs per class = $15,000

a) Now,

The multifactor productivity ratio = \frac{\textup{Output}}{\textup{Input}}

also,

Input = Labor costs + Total materials costs + Total overhead costs

or

Input = $3,000 + ( $10 × 30 ) + $15,000 = $18,300

And,

Output

= Average class size × credit hour × ( Student tuition + state supplements )

= 30 × 3 × ( $250 + $250)

= $45,000

Therefore,

The multifactor productivity ratio = \frac{\textup{45,000}}{\textup{18,300}}

= 2.46

8 0
3 years ago
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