Answer:
6.76% annually
Explanation:
The rate of return bondholders receives on a callable bond until the call date is called Yield to call.
Yield to Call = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]
It is assumed that face value of Bond is $1,000
C = Coupon Payment = $1,000 x 3.8% = $38
F = Face value = $1,000
P = Call price = $950
n -= number of periods to call = 5 x 2 = 10 periods
Yield to Call = [ $38 + ( $1,000 - $950 ) / 10 ] / [ ( $1,000 + $950 ) / 2 ]
Yield to Call = [ $38 - 5 ] / $975 = $33 / $975 = 0.0338 = 3.38% semiannually
YTC = 3.38% semiannually = 6.76% annually
Answer:
Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.
Explanation:
When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
Answer:
C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
Explanation:
In a budget workflow for raw materials, the relationship between the opening balance, purchase, requirement for production and ending balance may be stated as
opening + purchases - required = closing balance
Hence the raw materials to be purchased
purchases = closing balance + required - opening
C. Adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule and subtracting the beginning inventory of raw materials.
The fact that consumers can only listen to these songs when they have actively subscribed to the Spotify service demonstrates the perishability characteristic that differentiates products from goods.
The services have the following characteristics:
- Intangibility
- Inseparability
- Variability
- Perishability
Since perishability is a characteristic that guarantees that services cannot be stocked, that is, if they are not used, they cease to exist.
Therefore, when canceling the subscription to the music streaming service, users were no longer able to have the songs downloaded on their phone available, demonstrating the perishability characteristic of the services.
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