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Ostrovityanka [42]
3 years ago
8

Company X issues variable-rate debt but wishes to fix its interest rates because it believes the variable rate may increase. Com

pany Y has a fixed-rate bond but is looking for a variable-rate interest because it assumes the interest rates may decrease. The two companies agree to exchange cash flows. Such an arrangement is called:
Business
1 answer:
Gala2k [10]3 years ago
3 0

Answer: c) a swap

Explanation:

A Swap is a type of Derivative that involves two parties exchanging the cash-flows or even liabilities that they are getting from their different instruments.

Traditionally, Swaps are usually for cash-flows based on debt instruments like bonds, but as a derivative, the underlying instrument can be anything in the financial market.

Company X and Y exchanging cash-flows is a Swap.

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Last year’s sales were $9,815,000 and are projected to increase by 4.5% for next year. Last year’s expenses were 41% of last yea
Nutka1998 [239]

Answer:

t oadvertize there is 1,435,164.80   dollars available.

Explanation:

Sales: 9,815,000 x (1 + 4.5%)  =  10,256,675.00

general expenses are 41% of sales but will decay by 1.5%

10,256,675 x (0.41) x (1 - 0.015) =  4,142,158.20  

Profit will increase by 2%

4,587,600 x (1 + 2%) = 4,679,352

The amount available for advertizing spending is the difference between sales and the cost and profit:

sales - expenses - advertizing = profit

sales - expenses - profit = advertizing

advertizing = 10,256,675.00  - 4,142,158.20    - 4,679,352

advertizing = 1,435,164.80  

7 0
3 years ago
What are the essential elements for a commodity to be rich in economics.​
salantis [7]
Iron ore, sugar, grains (rice & wheat)
3 0
2 years ago
Bond portfolio immunization techniques balance ________ and ________ risk. price; reinvestment price; liquidity credit; reinvest
noname [10]

Answer:

The correct option is (A) price; reinvestment

Explanation:

The bond immunizatio refers to a strategy i.e. related to the investment that used for lowering the rate of interest and the risk of the bond via adjusting the time period of the portfolio for matching out with the investor time period of the investment.

In the case when there is a fall in the rate of interest so the immunzation would defines the appreciation of the price that compensatin the risk reinvestment

Hence, the correct option is (A) price; reinvestment

4 0
2 years ago
Economic growth can best be portrayed as a:
kicyunya [14]

Answer:

The correct answer is letter "D": Rightward shift of the production possibilities curve.

Explanation:

The Production Possibility Frontier (PPF) implies that as many jobs and resources as possible are produced at the maximum level. That maximizes jobs and reduces unused resources. This ideal state can generally not be attained but is seen as a goal.

Plotted in a graph, the PPF curve displays a mix of goods that can be produced and their ideal volumes of production. <em>Shifts of the PPF curve to the right imply growth while shifts leftwards imply a slow down in production.</em>

8 0
2 years ago
Diamond Productions reports a net change in cash of $50,000 on its statement of cash flows. What is the net cash provided by ope
Tanya [424]

Answer:

$21,000

Explanation:

Given;

net change in cash = $50,000

net cash provided by investing = $5,000

net cash provided financing activities = $14,000

net change in cash = net cash provided by operating + net cash provided by investing + net cash provided financing activities

50000 =  net cash provided by operating + 5000 + 14000

net cash provided by operating = 50000 - 5000 - 14000

                                                     = 21000

net cash provided by operating is $21,000

8 0
2 years ago
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