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Arlecino [84]
3 years ago
13

You buy a TIPS at issue at par for $1,000. The bond has a 3% coupon. Inflation turns out to be 2%, 3%, and 4% over the next 3 ye

ars. The total annual coupon income you will receive in year 3 is _________.
a.$30
b.$33
c.$32.78
d.$30.90
Business
1 answer:
Nataly_w [17]3 years ago
3 0

Answer:

C) $32.78

Explanation:

Treasury Inflation Protected Securities (TIPS) are US treasury bonds that are indexed to inflation. That means that the coupon paid is adjusted to include the inflation rate.

coupon for year 3 = ($1,000 x 3%) x (1 + inflation rate year 1) x (1 + inflation rate year 2) x (1 + inflation rate year 3) = $30 x 1.02 x 1.03 x 1.04 = $32.78

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KengaRu [80]

Answer: D) Cost per unit

Explanation:

In terms of manufacturing field, where the goods are manufactured, service operation is the process which workers manage and control demand of customers after getting training from operation manager.

Cost per unit is not the factor that acts as differing agent between manufacturing  process and service operation because it is a part of the process which is handled by workers .

Other options are incorrect because transportation, contact of customer and resale are the factors that contrast the manufacturing service and service operations.Thus, the correct option is option(D)

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3 years ago
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ratelena [41]
The correct answer to this question is True
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4 years ago
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nformation taken from a Sears, Roebuck and Company annual report follows. December 31 Long-Term Debt ($ in millions) Year 2 Year
cestrela7 [59]

Answer:

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Explanation:

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Answer:

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