Answer:
a.
3.51%
b.
0%
Explanation:
a.
First, we need to calculate the YTM of 6 months zero-coupon bond by using the following formula
Price = Face value / ( 1 + YTM )^numbers of years
96.79 = 100 / ( 1 + YTM )^1
1 + YTM = 100 / 96.79
1 + YTM = 1.0331646
Now calculate the YTM of 1 Year zero-coupon bond
93.51 = 100 / ( 1 + YTM )^1
YTM = 1.0331646 - 1
YTM = 0.0331646
YTM = 3.31646%
YTM = 3.316%
1 + YTM = 100 / 93.51
1 + YTM = 1.06940
YTM = 1.06940 - 1
YTM = 0.06940
YTM = 6.940%
YTM = 6.94%
Hence the forward rate is calculated as follow
Forward rate = [ (1 + YTM of 1 year zero coupon bond ) / ( 1 + YTM of 6 months year zero coupon bond ) ] - 1 = ( 1 + 6.94% ) / ( 1 + 3.316% ) = [ 1.0694 / 1.03316 ] - 1 = 1.03508 - 1 = 0.03508 = 3.508% = 3.51%
b.
At the time of inception the formward rate is 0.
Answer:
The answer is : to Update the balance of Retained Earnings and prepare revenue, expense, and dividend accounts for next period's transactions
Explanation:
The closing entries is to set the accounts' balance of temporary account to zero by transferring these balance to other permanent accounts at the end of the accounting cycles.
Temporary accounts includes accounts of revenues and expenses and dividend payment. Permanent account is Retained Earnings.
As Revenues and expenses are recorded for an accounting period, their balances should be all transferred to Retained Earnings account, together with the dividend payment during the period, to determined the ending balance of Retained Earning account at the end of the accounting period.
Once the closing entries has been recorded, the balance of all revenues and expenses, dividend payments accounts will be set back to zero at the start of next account period for recording revenue and expenses taken place in that period only. While Retained Earning Balance will show how much accumulated Earnings a firm retained since the start of its business.
Genetic information should indeed be confidential. You genetic outline can have what diseases you have, what you don't. Other people can discriminate your genetic DNA.
Answer: $78000
Explanation:
First, we have to calculate the total.costnoer equivalent unit which will be the addition of the material cost per unit and the conversion cost per unit. This will be:
Material cost per unit = $220,000 / (40,000+15,000)
= $220,000 / 55000
= $4
Conversion cost per unit= $414,000 / (40,000 + (15,000*40%)
= $414000 / 46000
= $9
Therefore, total cost per equivalent unit will be: $4 + $9 = $13
Then, the equivlant unit of the ending work in process would be calculated as:
= 15,000 × 40%
= 15000 × 40/100
= 15000 × 0.4
= 6,000
The cost of the ending work in process will then be:
= 6,000 × $13
= $78,000
Answer:
Horses - 0.75 - normal
Clubs- 0.875 - inferior
Diamonds - 1.75 - normal
Diamond is a luxury good
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income of the consumer.
Income elasticity of demand = percentage change in demand / percentage change in income
Income elascitiy for horses = 12% / 16% =
Income elasticity of demand for spades = 14% / 16% = 0.875
Income elasticity of demand for diamonds 28% / 16% = 1.75
A normal good is a whose demand increases when income increases and falls when income falls.
An inferior good is a good whose demand increases when income falls and whose demand falls when income increases.
Horses and diamonds are normal goods because the demand for the goods increases with income while clubs are inferior goods because the demand for the goods falls when income rises.
A luxury good is a good whose demand rises more than the rise in income. The demands for diamonds increase more than the increase in income, so diamonds are luxury goods.
I hope my answer helps you
