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Oksi-84 [34.3K]
4 years ago
13

Which of the following correctly describes a repurchase agreement? The sale of a security with a commitment to repurchase the sa

me security at a specified future date and a designated price The sale of a security with a commitment to repurchase the same security at a future date left unspecified, at a designated price The purchase of a security with a commitment to purchase more of the same security at a specified future date
Business
1 answer:
Morgarella [4.7K]4 years ago
3 0

Answer:

The correct answer is A: The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price

Explanation:

A repurchase agreement (Repo) is a short term agreement between two parties in which one party sells the other party security (usually government securities) a<u>t a price with an agreement to repurchase the exact same security at a fixed time and price.</u> The maturity for a repurchase agreement can be from overnight to a year. The

Repurchase agreements are generally considered safe investments because the security in question functions as collateral, which is why most agreements involve U.S. Treasury bonds. The transaction allows the dealer to raise short term capital. It is a short term money market instrument in which two parties agree to buy or sell a security at a future date.

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If an annuity is purchased in December and monthly benefits begin in January of the following year, what type of annuity is it?
cestrela7 [59]

Answer:

Option D    

Explanation:

A single premium immediate annuity relates to the insurance company arrangement whereby one really pay them a large sum of money right up front (widely referred to as a premium price) and so on. The company promise to regularly (monthly, for example) give you a specific amount of benefits for the remaining of one's lifetime.

Income payments both for instant annuities are made on the basis of non-taxed main yields and earnings payouts that are taxed at levels of income tax instead of levels of capital gain.

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3 years ago
4. What type of promotions do you think are most effective in the sports and
adoni [48]

Answer:

Publicity is the most effective way because consumers can see products in a specific way. ... A: Personal selling is more effective because it makes the customer want to come back and buy more products.

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3 years ago
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
natali 33 [55]

Answer and Explanation:

a) Discount:

Carrying Value:$106,554

Face Value:($118,000)

Discount:($11,446)

Calculate Gain/Loss:

Carrying Value:$106,554

Redemption Price:($120,360)

[118,000*102]

Loss:(13,806)

April 30 2022

Dr Bonds Payable $118,000

Dr Loss on Redemption $13,806

Cr Discount on Bonds Payable $11,446

Cr Cash $120,360

(Record retirement of bond at loss.)

(b)Calculate Premium:

Carrying Value:$271,021

Face Value:($250,400)

Premium:$20,621

Calculate Gain/Loss:

Carrying Value:$271,021

Redemption Price:($240,384)

[$250,400*96]

Gain$30,637

June 30, 2022

Dr Bonds Payable $250,400

Dr Premium on Bonds Payable $20,621

Cr Gain on Redemption $30,637

Cr Cash $240,384

(Record retirement of bond at gain.)

3 0
3 years ago
A company received 500 applications for a specific position.30 were given an assignment test. Only 15 were invited to an intervi
morpeh [17]
I think c might be wrong tho
4 0
3 years ago
Estes Park, Inc., has declared a dividend of $6.80 per share. Suppose capital gains are not taxed, but dividends are taxed at 15
ozzi

Answer:

$113.22

Explanation:

First, we need to find the after-tax dividend;

After-tax Dividend = Dividend x (1 - t) = $6.80 x (1 - 0.15) = $5.78

Ex-Dividend Price = Stock Price - After-tax Dividend

= $119 - $5.78 = $113.22

5 0
3 years ago
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