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Yuliya22 [10]
3 years ago
5

The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e

xpectations theory, what will be the interest rates on a three-year bond, six-year bond, and nine-year bond?
Business
1 answer:
Alja [10]3 years ago
5 0

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

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New-Tech Corporation borrowed $20,000 from the bank on March 1, 2011. The note carried a 9% annual interest rate and a 1-year te
faust18 [17]

Answer:

The correct answer is:

$ -O- $1,800 (a)

Explanation:

Principal = Amount borrowed = $20,000

interest rate = 9% = 0.09

Time = 1 year

Simple Interest = Principal × Rate × Time

Simple Interest = 20,000 × 0.09 × 1 = $1,800.

Next, we are asked to show how interest expense will appear  in 2011 and 2012 income statements respectively. First note that the 2011 interest expense will be recorded as $0 because that was the year in which the money was borrowed, and it was not paid back until 2012. In 2012, the interest and principal was paid back, and from the calculation, the interest paid was $1,800.

8 0
3 years ago
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $470,000. Included in that coun
Anna [14]

Answer:

$600,000; $40,000 (understated); Reduced by $40,000; Reduced by $40,000.

Explanation:

Given that,

Physical count = $470,000

Cost of shipment of goods received = $70,000

Another supplier shipment costing = $30,000

Merchandise cost = $100,000

Correct December 31, 2018, inventory balance:

= Physical inventory + Merchandise inventory (FOB)

= $470,000 + ($30,000 + $100,000)

= $470,000 + $130,000

= $600,000

Change in cost of goods sold:

= Change in net purchase(Understated) + Change in ending inventories

= [$70,000 + $100,000] + (-$130,000)

= $170,000 - $130,000

= $40,000 (Understated)

Net income reduced by $40,000 and also, the retained earnings reduced by $40,000.

3 0
3 years ago
Suppose the government decides that every family should own its own home. To bring this about, the government decides to subsidi
Kryger [21]

Answer:

The correct answer is option d.

Explanation:

If the government provides subsidies to home construction company it will reduce their cost of producing homes. So at the earlier cost, they will be able to provide more homes. This will cause the supply of homes to increase. This will cause a rightward shift in the supply curve.

At each price, the number of homes supplied by the companies will increase.

8 0
3 years ago
When giving a sales presentation to new customers, Terrance strives to convey that he is highly ethical and trustworthy and that
Alja [10]

Answer:

safety/security needs

Explanation:

Based on the scenario being described within the question it can be said that Terrance is most likely addressing the aspect of Safety needs. This level of Maslow's Hierarchy refers to the need for security and protection. Which is what Terrence is hinting at by bringing up that his products are a safe bet and that that the customers will have the security of the products performing as they are being advertised.

7 0
3 years ago
Read 2 more answers
The management at Burgerjoy, a small restaurant, finds that the lower the price of hamburgers, the more hamburgers are sold. Thi
Anika [276]

Answer:

Negative linear

Explanation:

Negative linear is when two variables move in the opposite direction.  Movement by one variable causes the other to move in the opposite direction. Negative linear is similar to an indirect relationship between the variable.  For Bungerjoy, the variables are price and sales of hamburgers.

An observation has been made that if the price of hamburgers decreases, the sales increase. Changes in the price of the hamburgers will result in sales moving in the opposite direction.  Positive linear correction is when two variables move in the same direction.

3 0
3 years ago
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