Answer:
1. Real risk-free rate.
2. Nominal risk free-rate.
3. Inflation premium.
4. Liquidity risk premium.
5. Liquidity risk premium.
6. Maturity risk premium.
Explanation:
Market interest rates can be defined as the amount of interests (money) paid by an individual on deposits and other financial securities or investments. The factors that typically affect the market interest rate known as the determinant of market interest rates are;
1. This is the rate on short-term U.S. Treasury securities, assuming there is no inflation: Real risk-free rate r*
2. It is calculated by adding the inflation premium to r*: Nominal risk free rate.
3. This is the premium added to the real risk-free rate to compensate for a decrease in purchasing power over time: Inflation premium.
4. This is the premium added as a compensation for the risk that an investor will not get paid in full: Liquidity risk premium.
5. This premium is added when a security lacks marketability, because it cannot be bought and sold quickly without losing value: Liquidity risk premium.
6. This is the premium that reflects the risk associated with changes in interest rates for a long-term security: Maturity risk premium.
Answer:
Subcultural
Explanation:
Consumer behaviour refers to how individuals make decisions on ways to spend their available resources, time, money, and effort on variety of items.
A society is composed of several sub-cultures in which iindividuals can identify themselves. A Subculture is a group of people within a culture who are different from the dominant culture but have something in common with one another such as common interests, religions, ethnic backgrounds.
Culture is considered an external factor that influences consumer behavior. Since different cultures have different values, they will have different buying habits. A typical example is the Jewish people that purchase about 63% of bagels that is sold in New York City.
Answer:
The journal entry is as follows:
Interest expense $961,388.00
Discount on issue of bond $61,388.00
Cash $900,000.00
Explanation:
In order to prepare the journal entry we have to calculate first the interest expense and the cash.
Therefore, Interest expense= ($19,227,757×10%×6/12)=$961,388.00
Cash=$20,000,000×9%×6/12= $900,000
By difference then, the discount on bond payable=$961,388-$900,000
=$61,388.
Hence, the journal entry is as follows:
Interest expense $961,388.00
Discount on issue of bond $61,388.00
Cash $900,000.00
Answer:
Optimal production run= 816 units per run
Explanation:
T<em>he optimal production run is the economic batch units that minimizes the balance of set-up cost and holding cost. It can be determined by adjusting the economic order quantity (EOQ) model for gradual replenishment ,</em>
EBQ = √(2× Co× D)/Ch(1-D/R)
EBQ- Economic /optimal production run
Co- set-up cost per run
Ch- holding cost per unit per annum
D- Annual Supply- 9800× 280
Production rate per day-5000
Optimal production run =
√(2×50× 800×280)/(40×(1-800/5000))
=816.4965809
Optimal production run= 816 units per run
Answer:
D.Gain, $5,000.
Explanation:
Truck Value = $48,000
Annual depreciation = ( $48,000 - $8,000) / 8 = $40,000 / 8= $5,000
First year (2013) = $40,000 - $5,000 = $35,000
Second year (2014) = $35,000 - $5,000 = $30,000
Third year (2015)= $30,000 - $5,000 = $25,000
Gain = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000