Answer:
1) B
2) A
3) D
Explanation:
1) Discount yield(%) = Face value - Purchase value/Face value X 360/Maturity ( in days) X 100%
Discount yield (quote) = 5.11; Face value = $10,000; Let Purchase value = x; Maturity = 90 days
(5.11)% = $(10,000 - x)/$10,000 X 360/90 X 100%
5.11 = 400(10,000 - x)/10,000
x = 4,000,000 - 51100/400 = 3,948,900 = $9,872.25
3) Face value = $10,000; Purchase value = $9,850; Maturity = 120 days
Investor's bond equivalent yield(%) = $(10,000 - 9,850)10,000 X 360/120 X 100%
= 45/10 = 4.5%
Answer:
d. $1,000
Explanation:
Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00 
2% = $1,000 is implicit cost.
Therefore, correct option is d. $1,000
You can arrest someone with a bench warrant.
Answer:
administered vertical market system
Explanation:
A regulated or administered vertical promotion structure refers to the framework in which, owing to its massive size, one participant of the manufacturing and distribution process is influential and unofficially conducts the essence of the vertical marketing network.
An illustration of such a framework may include a major retailer like Wal-Mart setting rules for tinier product manufacturers, such as a generic sort of washing detergent.
Managed vertical marketing programs do not use the delivery network's structured legal obligation and corporate control. Alternatively, one representative of the distribution platform produces adequate power to completely control the behavior of other representatives of the service offering.
Answer:
Year _______Risk Premium (%)
2011 _______ 0.95
2012_______ 16.01
2013_______ 32.99
2014_______ 12.66
2015_______ 0.46
Explanation:
The Risk premium is the premium paid to an investor for investing in a risky stock/security/asset over the risk-free rate in the market.
A Risk-free rate is a rate that is offered by a security having minimum or no risk at all e.g. Rate on Government securities are considered as the risk-free rate because these securities are backed by the government.
T bills or Treasury bills are also considered as risk-free investments.
Use following formula to calculate the Risk premium
Ris premium = Stock Market Return - T-Bill Return
Use above formula Calculate the risk premium as below
Year _ Stock Market Return (%) __T-Bill Return (%)__ Risk Premium (%)
2011 _______ 0.98 _______________0.03 _________ 0.95
2012_______ 16.06_______________0.05 _________ 16.01
2013_______ 33.06_______________0.07 _________ 32.99
2014_______ 12.71 _______________ 0.05 _________ 12.66
2015_______ 0.67 _______________ 0.21 __________ 0.46
