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natulia [17]
3 years ago
5

Rank the following instruments in terms of credit risk. In your rankings, use 1 for the greatest credit risk and 4 for the small

est credit risk. Assume a 10 year Treasury trades with a YTM of 5%.a. A Ba1 corporate bond ______b. A ten-year BBB- corporate bond with a YTM of 7% ______c. A secured loan from Argosy Gaming, which is a B- rated firm ______d. A senior subordinated bond from Argosy Gaming
Business
1 answer:
bija089 [108]3 years ago
8 0

Answer:

a. A Ba1 corporate bond <u>2 (not investment grade)</u>

b. A ten-year BBB- corporate bond with a YTM of 7% <u>3 (medium risk but still investment grade)</u>

c. A secured loan from Argosy Gaming, which is a B- rated firm <u>4 (less risky since it is backed by a collateral)</u>

d. A senior subordinated bond from Argosy Gaming <u>1 (highest risk)</u>

Explanation:

There are two major bond rating agencies in the US: Moody's and Standard & Poor's.

Their rankings are very similar, although the letters vary a little:

AAA: safest

AA: low risk

A: low risk

BBB: medium risk

BB: a little bit more riskier

B: risky

CCC: very high risk

CC: even riskier

C: riskiest

D: junk, in default

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Doogan Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direct m
RSB [31]

Answer:

d. $1,540 F

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour

where,

Actual direct labor hours is 2,380

And, the standard direct labor hours equal to

= 5,200 units × 0.5

= 2,600 hours

Now put these values to the above formula  

So, the value would equal to

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5 0
3 years ago
Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was
Liono4ka [1.6K]

Answer:

$208,000

Explanation:

Calculation for fixed overhead applied

Using this formula

Fixed overhead applied =Budgeted Fixed overhead+Fixed overhead volume variance

Let plug in the formula

Fixed overhead applied =$200,000+$8,000

Fixed overhead applied=$208,000

Therefore Fixed overhead applied must be $208,000

3 0
3 years ago
The aggregate supply curve normally a. slopes downward and to the right due to higher resource prices. b. has a horizontal slope
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Answer:

The answer is: D) slopes upward to the right due to short-run fixed costs of production.

Explanation:

In the short run, companies have fixed factors of production: prices, wages, and capital. In the short run, aggregate supply curve shows the correlation between the price level and output (normal supply curve). Only in case of a production increase due to technological improvements or other factors (decreasing input prices, etc), may the aggregate supply curve shift outward.

7 0
3 years ago
A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus
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Answer and Explanation:

From the diagram in the picture (please find attached) we see that the competitive price and quantity lies at the marginal cost( which the producer cannot go below). The consumer surplus lies just below the demand curve(the downward sloping curve with) and the producer surplus is above the marginal cost. Note the producer surplus is the difference between what the supplier is willing to sell and how much he actually sells,  the marginal cost is the lowest the supplier would want to sell. This applies to the consumer surplus too

The producer surplus region was indicated with vertical strokes in the diagram attached

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3 years ago
Market structure is determined by the Group of answer choices None of the Answers are Correct. Annual revenue, costs, and profit
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Market structure is determined by the number and relative size of the firms in an industry.

  • Market structure describes how different industries are categorized and distinguished based on how fiercely and in what ways they compete with one another for customers' goods and services. There are four different kinds of market structures: monopolistic competition, oligopolistic markets, perfect competition, and monopolistic markets.
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To learn more about market structure, refer: brainly.com/question/27874368

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6 0
1 year ago
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