Answer:
The bond is unsecured, doesn't have right to collateral, is called debenture.
Explanation:
The security in this question has a maturity date with stated interest, While, both preferred stocks and bonds would have a guaranteed payment, stocks are ownership in a company and wouldn´t have maturity date, so it can't be a stock.
Maturity dates are relevant to bonds, loans to a company, because that is the date when the bondholder should receive final payment on the face value of the bond. In this case 1.000.
Answer:
concept definition - demonstration - development - production
Explanation:
Research and development is mainly concerned with the development of a new concept, incorporation into a product, and delivery of product to the market as a way to improve the bottom line of the company.
It allows companies maintain a competitive edge over others in the same industry by bring new and innovative products to the customer.
The stages of R&D include: concept definition - demonstration - development - production.
The innovative idea is first defined and feasibility is evaluated.
The concept is demonstrated to show practicability of the idea.
The concept is further developed to suit customer needs.
Finally production and marketing is done to make product available to the customer.
Answer:
3.76 years
Explanation:
Given:
Let face value of bond be $1,000
Coupon rate = 10% or 0.1
Coupon payment (pmt) = $100
YTM (rate) = 9.5%
Current price of the bond is computed by dividing coupon payment by current yield.
Current yield = 9.85% or 0.0985
PV of bond = 100 / 0.0985 = $1,015.23
Compute years to maturity using spreadsheet function nper(rate,pmt,PV,FV)
Years to maturity is 3.76 years.
Answer:
D. General Office Administrative Costs
Explanation:
A Profit Center
A profit center represents a business unit or department in an organisation that generates revenue, profits or losses.
A Direct Fixed Cost
A direct fixed cost represents a cost that is directly traceable to a product, a service or to a center. In this question, the consideration is to identify the option that does not represent a cost directly traceable or directly incurred by the profit center.
General Office Administrative Costs
In accounting, the rule of the thumb is that general office administrative costs are not directly attributable to the production of goods or services. This cost represents the costs incurred to carry out a business' day to day operations including building rent, office supplies and subscriptions among others. The right option is therefore, the General Office Administrative Costs. Put differently, it represents costs that the business will incur even without the profit center, department or unit.
The other options from are costs that are directly related to the profit center and should not be incurred if the profit center does not exist. For instance, the Manager's salary will not be incurred if there is no center and there will be no depreciation on center's equipment if the center does not exist in the first place.