All categories

3 years ago

The statement "Bond prices vary inversely with changes in the market rate of interest" means

Business

1 answer:

Sati [7]3 years ago

5 0

Answer:

The correct answer is option A.

Explanation:

The statement given above says that bond prices vary inversely with changes in market interest rate. It means that there is an inverse relationship between bond prices and the market interest rate.

In other words, when the market interest rate falls, the bond prices will rise and when there is an increase in market interest rate, the bond prices will fall. The bond price and market rate of interest are negatively related.

You might be interested in

Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service

UNO [17]

<u>Solution and Explanation:</u>

a. Prepare the journal entries for Geraths in 2014.

On July 1, 2014, Geraths enters into a contract with a customer for the purchase and installation of window for a price of $2,400. No journal entry.

On september 1, 2015.

Windows = $2,000

Installation = $600

Total = $2,600

Allocation

<u>Particulars </u> <u>Amount </u>

Installation $(\$ 600 / \$ 2,600) \times \$ 2,400$ 554

Windows $(\$ 2,000 / \$ 2,600) \times \$ 2,400$ 1,846

Revenue recognized 2,400

Date Account details Debit Credit

Sep 1,2015 Cash 2,000

Account receivable 400

unearned service revenue 554

Sales revenue 1846

Cost of goods sold 1100

Inventory 110

15 oct,2015 Cash 400

unearned service revenue 554

Service revenue (installation) 554

Account receivable 400

(Revenue recognized after service provided)

<u>On september 1,2015. </u>

Windows = $2,000

Installation $(\$ 400+(20 \% \times 400)$ = $480

Total = $2,480

Allocation.

sales revenues 200,000

Particulars Amount

Installation 465

Windows 1,935

Revenue recognized 2,400

Date Account details Debit Credit

Sep 1,2015 Cash 2,400

Account receivable 400

unearned service revenue 465

Sales revenue 1935

Cost of goods sold 1100

Inventory 1100

(Windows delivered,Instailation recorded )

15 oct,2015 Cash 400

unearned service revenue 465

Service revenue (installation) 465

Account receivable 400

(Revenue recognized after service provided)

5 0

3 years ago

Use Tuition Tracker to get an estimate of the annual net price for Jada to attend North Carolina State University. *Once you’ve

Temka [501]

1. Jada's annual net price based on her family income of $52,000 is <u>$15,321</u>, according to the Tuition Tracker.

2. In 4 years, Jada will owe <u>$78,001.43</u>, including interest.

<h3>What is the annual net price?</h3>

The annual net price is Jada's <u>annual cost of attending college</u> after subtracting the grants, scholarships, tuition waivers, and other gift aids. The annual net price does not include loans but excludes the financial aid which Jada does not have to repay or earn.

The solution to question 2 is found by using an online finance calculator as follows:

<h3>Data and Calculations:</h3>

Family income per year = $52,000

High school senior GPA = 3.4

Average Annual Net Price = $18,807

Estimated Sticker Price = $24,259

Grants and Scholarships = $8,938

Estimated student loan rate = 5%

To Graduate In 4 years

Estimated Loan Amount = $15,321/year

Current Balance = $0

Loan Term = 10 years

Grace Period = 6 months

Interest Rate = 5%

Result:

Repayment: $650.01/month

Amount Borrowed: = $61,284.00 ($15,321 x 4)

Total Interest: $16,717.43

Total Loan amount to be repaid = $78,001.43

<h3>Complete Question:</h3>

Jada is a biracial high school senior with a 3.4 GPA
She really wants to attend North Carolina State University, her mom's alma mater
Her family income is $52,000 per year
She is trying to decide between two career tracks, both of which are offered by her college
Graphic designer, because she's artistic and loves computers
Accountant, because she's great at math and she's done job shadowing in this area.

1. Use Tuition Tracker to get an estimate of the annual net price for Jada to attend North Carolina State University. *Once you've found NCSU, be sure to change her family income at the very top of the screen to get an accurate cost.

2. Assuming the net price remains constant and she takes the entire annual net cost in student loans, how much will she owe if she graduates in 4 years?

Learn more about the annual net price at brainly.com/question/26163228

5 0

2 years ago

You place half your wealth into tivo stock and the other half into intel bonds. tivo stock's beta = 1.2 and intel bonds' beta is

Butoxors [25]

Weight to wealth in the tivo stock = w1 = 0.5

Weight to wealth in intel bonds = w2 = 0.5

Tivo stock beta (beta1) = 1.2

Intel bond beta (beta2) = 0.90

Portfolio (beta) = w1beta1 + w2beta2 = 0.5 x 1.2 + 0.5 x 0.9

The answer is 1.05

6 0

3 years ago

Petra is paying her ten employees for 40 hours a week, 52 weeks each year. in 2007, petra spent on wages for her employees each

photoshop1234 [79]

In 2007, Petra spent <u>$2,340</u> on wages for her employees each week, and Petra increased her annual wage budget from 2008 by <u>$14,56</u>0.

<h3>Calculation of wages</h3>

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Petra owns a coffee shop. She has ten employees. In 2007, she paid her employees minimum wage ($5.85 an hour). In 2008, the minimum wage increased to $6.55 an hour. In 2009, the minimum wage increased to $7.25 an hour. Petra is paying her ten employees for 40 hours a week 52 weeks each year. In 2007 Petra spent___ on wages for her employees each week. When the minimum wage rose in 2009, Petra had to increase her annual budget for wage from 2008 by___

We can now proceed as follows:

Weekly wage spent Petra in 2007 = 2007 minimum wage per hour * Number of employees * Number of hours per week = $5.85 * 10 * 40 = $2,340

Amount of increase in minimum wage per hour between 2008 and 2009 = $7.25 - 6.55 = $0.7/hour

Petra’s increase in annual budget for wages in 2009 = Amount of increase in minimum wage per hour between 2008 and 2009 * Number of employees * Number of hours per week * Number of weeks = $0.7 * 10 * 40 * 52 = $14,560

Learn more about wages here: brainly.com/question/15381069.

#SPJ4

6 0

2 years ago

Sally wanted to replace the old carpet in her home. She entered into a contract with Good Carpet Co. (GCC) for the purchase and

lilavasa [31]

Answer:

The correct option is B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

Explanation:

Note: This question is not complete as the options are omitted. The options are therefore provided to complete the question before answering it as follows:

A. The contract rules of the UCC apply, because the contract included the sale of goods.

B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

C. The contract rules of the common law apply, because the contract included services, which are governed by the common law.

D. The contract rules of the common law apply, because all contracts are governed by the common law.

The explanation of the answers is now provided as follows:

The contract between Sally and GCC majorly has to do with sales of carpet. Therefore, the contract does not involve service supply, which is installation in this case, as a major component.

Another thing is that the intention of Sally was to sue GCC for the services they provided rather than the product, i.e. carpet, they sell.

Therefore, the correct option is B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods.

7 0

3 years ago