1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Helen [10]
3 years ago
6

A pension plan is obligated to make disbursements of $2.5 million, $3.5 million, and $2.5 million at the end of each of the next

three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Business
1 answer:
Anit [1.1K]3 years ago
5 0

Answer:

Please see attachment

Explanation:

Please see attachment

You might be interested in
According to Colorado Real Estate License Law, how long is an agent responsible for maintaining client confidentiality?
Morgarella [4.7K]

Answer:

Three years from the expiration of the contract .

Explanation:

5 0
3 years ago
If u cause a car accident which type of insurance will require you to pay the least out of pocket?
PilotLPTM [1.2K]
A high deductible plan would work, just in case.
4 0
2 years ago
All business strategies seek to gain competitive advantage. <br> a. True <br> b. False
insens350 [35]
True.............:  :3
7 0
3 years ago
Hassock Corp. produces woven wall hangings. It takes 3 hours of direct labor to produce a single wall hanging. Hassock standard
NISA [10]

Answer:

Direct labor time (efficiency) variance= $2,080 unfavorable

Explanation:

Giving the following information:

Standard= 3 hours of direct labor per unit

The standard labor cost is $13 per hour.

During August, Hassock produced 9,000 units and used 27,160 hours

<u>To calculate the direct labor efficiency variance, we need to use the following formula:</u>

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (3*9,000 - 27,160)*13

Direct labor time (efficiency) variance= $2,080 unfavorable

5 0
2 years ago
On January 1, 2018, Byner Company purchased a used tractor Byner paid $3,000 down and signed a noninterest-bearing note requirin
Sedbober [7]

Answer:

tractor   35,127,42 debit

      note payable         32,172.42  credit

     cash                           3,000     credit

--to record issuance--

Note payale end of 2018

39,584.19

note payables at Dec 31th

Note payable at the end of 2019

39,584.19

note payables at Dec 31th

Explanation:

As the note has zero.interest we discount the note to get the present value:

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $44,000.0000  

time   3.00  

rate  0.11

\frac{44000}{(1 + 0.11)^{3} } = PV  

PV   32,172.42  

The difference will be a discount that will acrrue interest overtime.

the truck will enter the accounting net of interest charges thus:

3,000 downpayment + 32,127.42 = 35,127.42‬

interest will be: 32,127.42 x 1.11 = 32,127.41

<u><em>Then, do the same for 2019</em></u>

(32,127.41 + 3,532.0162) x 1.11 = 39,584.19

5 0
3 years ago
Other questions:
  • This year Samantha gave each of her three nephews birthday gifts of $10,000 in cash. At Christmas, Samantha gave each of her thr
    8·1 answer
  • The __________ is the serous membrane that covers most digestive organs.
    6·2 answers
  • Joey's father is in a car accident and cannot work. what type of insurance replaces his father's earnings?
    7·2 answers
  • Producer surplus is
    5·1 answer
  • When using acronym meet to improve intercultural relations in work place what action does the T represent
    12·1 answer
  • A 4-year project has an annual operating cash flow of $51,000. At the beginning of the project, $4,200 in net working capital wa
    5·1 answer
  • An investment has an initial cost of $2.7 million and net income of $189,400, $178,600, and $172,500 for Years 1 to 3. The avera
    5·1 answer
  • The Sharps were granted a decree of divorce effective January 1, 2018. In accordance with the decree, Susan Sharp is to pay her
    14·1 answer
  • Identify a current trending topic on Yahoo! or Twitter. Why do you think this particular topic is currently trending? How long d
    5·1 answer
  • When there is disagreement among members at the same level of marketing channels, such as when best buy and sears engage in a pr
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!