Every decision you make is an economic decision because you're choosing how to use your

Ten years ago, Cary Company issued $1,500,000 of 7 percent, 10-year bonds at a price of 95. On the maturity date of January 2, a

arsen [322]

Answer:

Explanation:

The journal entry is presented below:

On January 2

Bond payable A/c Dr $1,500,000

To Cash A/c $1,500,000

(Being the redemption of the bonds is recorded)

The discount on bonds payable would be matured on the date of maturity so in this case the face value would be recorded and it is equaled to the carrying value

3 0

3 years ago

To create a portfolio with duration of 4 years using a 5 year zero-coupon bond and a 3 year 8% annual coupon bond with a yield t

vovikov84 [41]

Answer:

One would have to invest 55%

Duration of 3-year bond is 2.78

Then 5wZ + 2.78(1 - wZ) = 4

2.22wZ = 1.22

wZ = .5495

Explanation:

To properly understand the concept behind the above calculation, let us define some basic concept:

Portfolio: This can be refereed to as a phrase in finance. It refers to the collection on investment that is being held by an investment company, a financial institution such as a bank ,persons or an individual.

Zero coupon bond: A zero-coupon bond is a bond where the nominal or return on investment (ROI) value is repaid at the time of maturity. This definition usually reflects a positive time value of money.

We should also recall that the formula for zero coupon bond as:

price = M / (1 + i)^n

where: M = maturity value

i = required interest yield divided by 2

Applying this formula, we were able to arrive at the investment percentage.

5 0

3 years ago

What challenges do you see for a company that wants to implement collaborative SCM systems? How would you meet such challenges?

OverLord2011 [107]

This would help you a lot :) have fun

3 0

2 years ago

Packaging and labeling not only provides benefits for the consumer, but if done successfully in a way that puts a firm in a favo

Black_prince [1.1K]

Packaging and labeling, in addition to benefiting the final consumers, also provides a <u>competitive advantage</u> for the firm.

<h3>What are packaging and labeling?</h3>

Packaging and labeling are the processes of designing and developing suitable packages for the enclosure of products and providing some instructions and suggestions for product usage.

While packaging focuses on the product's appearance, labeling is mainly concerned with the product's description.

Thus, packaging and labeling, in addition to benefiting the final consumers, also provides a <u>competitive advantage</u> for the firm.

Learn more about packaging and labeling at brainly.com/question/25909529

6 0

2 years ago

Coat's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking

VLD [36.1K]

Increase the promotion budget to gain greater awareness

Explanation:

Coat's manager continues to perform well in the market competing product as strong and is looking to take over the market share leader in segment.
The coat product manger in order to improve the buying criteria, and thus potentially increase demand the best product manager should purchased.

Marketing and promoting is a strategy in which one can communicate the customers and target prospective customers to buy the products.

Thus increasing the demand of the product and thereby increase the promotion budget and gain greater awareness.

6 0

3 years ago