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mel-nik [20]
3 years ago
15

Two years ago, you purchased a $1,000 par value corporate bond with a coupon interest rate of 7.25 percent. Today, comparable bo

nds are paying 7.00 percent. What is the approximate dollar price for which you could sell your bond?
Business
1 answer:
kirza4 [7]3 years ago
7 0

Answer:

$1,035.71

Explanation:

first we must determine the annual interest = face value x coupon rate = $1,000 x 7.25% = $72.50

now to determine the approximate market value = annual interest / market interest rate = $72.50 / 7% = $1,035.71

since the market rate is lower than the coupon rate, you can sell your bond at a premium

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In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
Tomtit [17]

The FDIC stands for Federal Deposit Insurance Company.

By raising the limit on insured losses the FDIC helps stabilize the system by instilling confidence.

If the consumer knows that their savings accounts are protected up to $250,000 they will be encouraged to spend money during a time of crisis.

Because of the increased limit, there is less probability that there would be something called

"a run on the bank."

8 0
3 years ago
Fortune Company had beginning raw materials inventory of $16,000. During the period, the company purchased $92,000 of raw materi
elixir [45]

Answer:

The amount of raw materials transferred to work in process is $98,000.

Explanation:

Given that, at the beginning of its business operations, Fortune Company had a raw material inventory of $ 16,000 and that, during the business year, it acquired another quantity of raw materials for $ 92,000, the total of raw materials in the company's stock had a total value of $ 108,000 (16,000 + 92,000).

Now, if at the end of the balance the value of the raw materials was $ 10,000, the amount of raw material that was incorporated into the production process was a value of $ 98,000 (108,000 - 10,000).

8 0
3 years ago
After reading the article, select the statements that are correct. Choose one or more: A. The cost-of-living adjustment for 2020
Mama L [17]

Answer:

  • B. The former program trustee argues that the current inflation measure overcompensates seniors since it ignores the substitution effect.
  • C. According to advocates for seniors, the 2020 COLA is not enough to compensate for rising healthcare costs.
  • D. Elizabeth Warren has proposed using a new inflation measure that outpaces the current one used.

Explanation:

The article is, ''<em>Social Security checks to rise modestly amid push to expand benefits '' </em>by<em> Associated Press. </em>

Blahous is a former program trustee who believes that the current inflation adjustment rate at which Social security is increasing is overcompensating seniors because it does not take into account that seniors could be switching to buying cheaper products which is the Substitution effect.  

Advocates and the seniors themselves have complained that the 2020 COLA is not enough to meet their current needs especially given the rising cost of healthcare.

Elizabeth Warren and Bernie Sanders both proposed using a new measure for inflation that will adequately compensate the seniors because it outpaces the current one used.

8 0
3 years ago
18. Galaxy, a construction company, buys a particular brand of tiles manufactured by Tiles and Floors, an eco-friendly tile manu
Anuta_ua [19.1K]

OPTIONS:

a. Resources

b. Time

c. Scope

d. Cost

Answer:

a. Resources

Explanation:

Business constraints are factors or any aspect of the business environment that limits the smooth running of a business. They serve as impediments to the actualization of business objectives and goals.  

The constraint faced currently by Galaxy is “resources”. The tiles they do procure from Tiles and Floors serve as one of the resources they need in their construction company. Since, the company supplying them these materials has been declared bankrupt and closed down, they are constrained by the unavailability of resources, which they need in their operations .

4 0
3 years ago
A group of researchers want to study the effects of alcohol on sexual behavior in mice. They inject 50 mice with an alcohol solu
Vaselesa [24]

Answer:

The correct answer is letter "B": The sexual behavior.

Explanation:

Independent variables are those that represent the main reason for the research. From independent variables come dependent variables that refer to events that are used to study the independent variable but these could be changed for others and the main objective of the research would remain the same.

Thus, <em>the independent variable of the example is the effects of alcohol and the dependent variable is sexual behavior</em>.

3 0
3 years ago
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