The trustees of a pension fund would like to examine the issue of protecting the bonds

Exchange rate is currently $1.25 US per 1 Euro. Interest rate is 2% in the US and 1% in Eurozone. A bank is long a futures contr

kolbaska11 [484]

Answer:

Invest $990,099 U.S

Explanation:

The interest rate is 2% for US dollars and 1% for euro

The exchange rate is 1.25 dollars to a euro.

To calculate future exchange rate:

1.25dollars (1+exchange rate of us/1+ exchange rate of euro)

= 1.25(1.02/1.01)

= 1.2625

Approximately 1.26

After a year they will be getting .26 million dollars.

They need to invest something close to this amount 1.2/1.02

Therefore option b is the best answer

8 0

3 years ago

When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using which pric

Leno4ka [110]

When airlines charge higher prices for seats in the Economy section Exit rows that have more leg room, they are using demand oriented pricing strategy.

<h3 /><h3>What is demand oriented pricing strategy?</h3>

This is a strategy, used by a seller inorder to set the price of a product at a limit within the buying capacity of the targeted consumers.

It is to be noted that demand-oriented attempts to set price at level that intended buyers are willing to pay.

Learn more about demand oriented pricing strategy here: brainly.com/question/25347718

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5 0

2 years ago

On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5

Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875. Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3. It is annually tested for impairment by comparing the fair value with the carrying value.

6 0

3 years ago

If aggregate expenditure in an economy equals 1,000 0. 9y and full employment real gdp equals 9,000, then this economy has:_____

LenKa [72]

The economy would be in equilibrium as AE = 1000 + 0.9Y

Y = 1000 + 0.9Y

Y - 0.9Y = 1000

(1-0.9) Y = 1000

Y = 1000/0.1

Y = $10000

AE = 10,000

<h3>What does total spending actually mean?</h3>

Aggregate expenditure, a macroeconomic statistic, is used to measure and evaluate the total amount of economic activity or output within a country. A nation's total outlays over a given time period are measured by aggregate expenditure, just as the gross domestic product (GDP) and national income.

Expenditures that alter in reaction to real GDP are referred to as induced aggregate expenditures. Take consumption spending as an example of an induced aggregate expenditure, which rises with real GDP.

For more information about aggregate expenditure refer to the link:

brainly.com/question/13525490

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6 0

1 year ago

You start to receive numerous bills for items that you never purchased. What should you do if you feel that you are victim of id

Zolol [24]

You call up the bank and tell them it was not you

7 0

3 years ago

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