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fredd [130]
3 years ago
7

Assume the Expectations Hypothesis regarding the term structure of interest rates is correct.

Business
1 answer:
S_A_V [24]3 years ago
6 0

Answer:

2.5% is the current two years interest rate

Explanation:

If the first year interest rate is 2% and expected coming year interest rate is 3% based on the hypothetical projection which is believed to be correct, then the interests rate for the two years will be the average of the interest of the two years in focus which gives us:

Current IR = IR (yr 1) + IR (yr 2) / no of years

Current IR = 2 + 3 / 2 = 2.5

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A company issued a 20-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of interes
Kitty [74]

Answer: $828

Explanation:

Given the following :

Semi-annual payment = $40

Period = 20 years

Number of payments = (20 * 2)(semiannual) = 40 payments

Par value = $1000

Interest rate = 5%

Using the PV table:

PV at $1 (40, 5%) = 0.1420

PVA at $1 (40, 5%) = 17.159

[Par value * PV at $1 (40, 5%)] + [$40 * PVA at $1 (40, 5%)]

= ($1000 * 0.1420) + ($40 * 17.159)

= $142 + $686.36

=$828.36

= $826

4 0
2 years ago
The following are the current? month's balances for ABC Financial? Services, Inc. before preparing the trial balance. Accounts P
ale4655 [162]

Answer:

B. $ 23 comma 000 $23,000

Explanation:

Following equation to calculate the common stock Value

Total Debit = Total Credit

40,500 = $17,500 + Common stock value

Common stock value = $40,500 - $17,500 = $23,000

<u>Accounts with Credit balances</u>

Accounts Payable       $7,000

Revenue                      $6,000

Common Stock              ?

Notes Payable              $4,500

Total Debit balances                    $17,500

<u>Accounts with Debit balances</u>

Cash                             $3,000

Expenses                     $16,500

Furniture                      $10,000

Accounts Receivable  <u>$11,000</u>

Total Debit balances                      40,500

6 0
3 years ago
Zander Inc. uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at
Margarita [4]

Answer:

Find attached complete question:

The correct option is A,$ 746,200

Explanation:

The total standard costs for the whole items of inventory completed in the month of July is the sum of the beginning balance of inventory plus direct materials costs, direct labor cost as well as manufacturing overhead cost applied.

Total cost of completed units=$44,100+$564,900+$195,300+$315,000=$ 1,119,300.00  

standard cost per unit=$1,119,300.00/21000=$53.3

Cost of goods sold(unadjusted)=$53.3 *14,000=$ 746,200.00  

6 0
3 years ago
As a factor of production, how is capital created? A. By adding land to entrepreneurship B. By adding human labor to land C. By
Dennis_Churaev [7]

Answer:

B

Explanation:

By adding human labor to land

7 0
2 years ago
Read 2 more answers
Oriole Company was formed on December 1, 2019. The following information is available from Oriole's inventory record for Product
Leokris [45]

Answer:

FIFO Ending Inventory $ 64900

Explanation:

Oriole Company

Date                         Particulars        Units       Unit Cost       Total Cost

January 1, (beginning inventory)    2,000              $15         30,000

January 5,            Purchases:         2,500              $17          42500

January 25,          Purchases:         2,200               $18         39600

February 16,        Purchases:           1,100                 $19        20900

<u>March 15,               Purchases:         2,200              $20        44000</u>

<u>Total                                                10,000                            $ 177000  </u>

A physical inventory on March 31, 2020, shows 3,300 units on hand.

FIFO means first in first out. It is a method of calculating inventory items. In it the first items purchased are sold out first. Following this rulethe ending inventory FIFO can be calculated by moving backwards from March 15 purchases as follows.

FIFO Ending Inventory $ 64900

March 15 Purchases  2,200 units at $20=$ 44000

February 16,Purchases units 1,100 at $19 =$20900

6 0
2 years ago
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