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2 years ago

Consider the following yields to maturity on various one-year zero-coupon securities:

Business

1 answer:

Anika [276]2 years ago

5 0

Answer:

A) 1.0%

Explanation:

Given that

Security Yield (%)

Treasury 4.6

AAA corporate 4.8

BBB corporate 5.6

B Corporate 6.2

By considering the above information, the credit spread of the BBB corporate bond would be

= BBB corporate - Treasury

= 5.6% - 4.6%

= 1.0%

We simply deduct the treasury from the BBB corporate so that the credit spread could come

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Current expenditure is money spent on goods and services consumed within:

Fiesta28 [93]

Answer:

A) one year

Explanation:

As the name implies, current expenditure is an accounting term used to classify the total cost incurred on an item presently (or currently) within one year.

For example, It would be out of place to classify the projected cost of renting a facility in the next three years as a current expenditure if payment would be made in the future.

5 0

2 years ago

Mendez Company is considering a capital project that costs $16,000. The project will deliver the following cash flows: Year 1 Ye

kkurt [141]

Answer:

2.4 years

Explanation:

Years Cash Cumulative Cashflow

1 8000 8000

2 6000 14000

3 5000 19000

4 4000 25000

5 5000 30000

30000

Payback period = 2 years + (16,000 - 14,000) / 5,000

Payback period = 2 years + 0.4 years

Payback period = 2.4 years

5 0

2 years ago

A rifle manufacturer like Springfield needs muzzles, trigger mechanism, and wooden gunstocks to produce rifles. Without these it

kicyunya [14]

Answer:

derived demand

Explanation:

The demand for a factor of production or the intermediate goods would occurs when the result of the demand for the other final or intermediate goods this we called as a derive demand. Also the demand of the firm let say the factor of an output would be calculated via market demand for the product it generates.

So according to the given situation, it is a derive demand

6 0

2 years ago

When some fraction of the benefit of an activity is received by people not participating in the activity, it is called a(n)

ELEN [110]

Answer: Positive Externality

Explanation:

Externality is a side effect of an activity that is operated by a particular industry or people which affects the other parties who are not involved in the activity and this cost is not included in the cost of goods and services.

There are two types of externalities ; Positive and Negative externality.

Negative externality refers to the externality that affects the other parties in a negative way. For example, smoking.

Positive externality refers to the externality that affects the other parties in a positive way. For example, Education.

Therefore, if some part of the benefit of an activity is received by the third party who is not involved in this activity, it is called Positive Externality.

4 0

2 years ago

An employee that only has the authority to use the employer's credit card for business expenses has what kind of relationship?

Andrew [12]

Answer:

a. Universal agent

Explanation:

The universal agent is an employee that has been appointed by the employer to do particular task. It could be appointed via power of attorney through which he can perform all types of functions

Therefore as per the given situation since the employee can use the credit card of the employer for the business expense so this represent that the relationship is of universal agent

hence, the correct option is a.

3 0

2 years ago