All categories

3 years ago

In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to _____

Business

1 answer:

vova2212 [387]3 years ago

8 0

Answer: duration of the portfolio

Explanation:

An investment time horizon which is also referred to as the investment horizon is total time that an investor is expected to hold a particular security.

In the context of a bond portfolio, price risk and reinvestment rate risk exactly cancel out at a time horizon equal to duration of the portfolio.

You might be interested in

Carnival Enterprises produced 8,000 completed units of a product. According to manufacturing specifications, standard hours for

puteri [66]

Answer:

C. $3,400 F

Explanation:

The computation of the direct labor rate variance is shown below:

Direct Labor Rate Variance

= (Standard rate - Actual rate) × Actual hours

= ($12 - $200,600 ÷ 17,000 labor hours) × 17,000 direct labor hours

= ($12 - $11.8) × 17,000 direct labor hours

= $3,400 favorable

Since standard cost is more than the actual cost which leads to favorable balance

6 0

3 years ago

After initial investigation into this topic, you suspect that several problems you identified in your scope statement might not

mr Goodwill [35]

Answer:ok so...

Explanation:

8 0

3 years ago

Is there a company in a specific industry that can get by without having any customer service? If so, why and how does that make

Artyom0805 [142]

Answer:

Explanation:

Customer service has a great impact on every business, every company must train it's staff on how to listen to customers and attend to their needs in a polite and professional manner.

A great customer service will keep customers happy and satisfied, this will in turn make them want to come back to do more business. A satisfied customer will go extra length to recommend others to the company but unsatisfied customer that feels that his needs weren't addressed properly or his request wasn't attended to, such customer will not likely but from the company and also bad mouth the company to others and this will leave a great impact on the company growth.

In summary, no company in a specific industry would survive or get by without having customer service as this is part of what makes a company grow.

4 0

3 years ago

IBM's Smarter Planet campaign markets IBM as a company that provides innovative solutions that improve the world's IQ. This is a

Sergeu [11.5K]

IBM's Smarter Planet campaign markets IBM as a company that provides innovative solutions that improve the world's IQ. This is an example of organization marketing.

<h3><u>Explanation:</u></h3>

Marketing function plays a vital role in the success of any company. It is the process by which the companies will first find the potential markets for selling their products and then promote their products saying how they vary from the other similar products.

Organisation marketing is the strategy that is being used by the business but a difference is that here customers will buy their products and do not used those products personally. In the example given, IBM markets innovative solutions that helps in improving the Intelligence Quotient. This acts as an example of organization marketing.

6 0

3 years ago

On May 1, 2017, Pronghorn Company issued 2,500 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. Shor

dybincka [34]

Answer:

a. Prepare the entry to record the issuance of the bonds and warrants

May 1, 2017, bonds issuance

Dr Cash 2,550,000

Dr Discount on bonds payable 25,000

Cr Bonds payable 2,500,000

Cr Additional paid in capital - stock warrants 75,000

b. Assume the same facts as part (a), except that the warrants had a fair value of $30. Prepare the entry to record the issuance of the bonds and warrants.

May 1, 2017, bonds issuance

Dr Cash 2,550,000

Cr Bonds payable 2,500,000

Cr Premium on bonds payable 20,000

Cr Additional paid in capital - stock warrants 30,000

Detachable warrants must be recorded separately than the bonds. They must be recorded as APIC stock warrants.

4 0

3 years ago