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2 years ago

Why are bonds known as fixed income investments?

Business

1 answer:

Alinara [238K]2 years ago

6 0

Answer:

Option D. All of the above

Explanation:

The reason is that on a fixed income investment, there are periodic income payments with agreed fixed interest rate. So the borrower also promise to make the full repayment of the principal in most of the cases and there are sometimes (not always) option to convert the amount lent into shares. The principal payment always fixed because the investor receives it either in the form of greater rate of returns or all of it in the form of principal repayment. This is agreed with the lender, So all the options are correct here. Option D is the right answer.

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2 years ago

A firm is a competitive seller of output at amarket price of $3. The only resource itrequires to create its product is labor, wh

bulgar [2K]

Answer:

B. $6

Explanation:

Marginal revenue for the worker = change in wage ÷ change in quantity output

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2 years ago

The Perry Corporation recorded the following budgeted and actual information relating to fixed overhead costs for its Z-Line of

steposvetlana [31]

Answer:

Volume variance= $1,800 unfavorable

Explanation:

Giving the following information:

Standard fixed overhead per direct labor hour $3

Standard direct labor hours per unit 0.75

Budgeted production 3100

Budgeted fixed overhead costs $6975.00

Actual production in units 3900

Actual fixed overhead costs incurred $2200.00

To calculate the fixed overhead volume variance, we need to use the following formula:

Volume variance= budgeted fixed overhead - fixed overhead applied

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2 years ago

The perimeter of a rectangle with a width x and a length that is four times the widthA nursery has $55,000 of inventory in dogwo

nalin [4]

The question is incorrect. The correct question is as follows,

A nursery has $55,000 of inventory in dogwood trees and red maple trees. The profit on a dogwood tree is 28% and the profit on a red maple tree is 17%. The profit for the entire stock is 20%. How much was invested in each type of tree?

Answer:

The investment in Dogwood trees is $15000.

The investment in red maple trees is = $40000

Explanation:

To calculate the investment in each type of tree, we will say that x was invested in dogwood trees and the investment in red maple trees was 55000-x.

The profit on the entire investment is calculated as the weighted average of the profit on dogwood trees and profit on the red maple trees. The formula for overall profit can be written as follows,

Overall profit = Investment in dogwood / total investment * profit % on dogwood + Investment in red maple / total investment * profit % on red maple

0.2 = x / 55000 * 0.28 + (55000 - x) / 55000 * 0.17

0.2 = 0.28x / 55000 + (9350 - 0.17x) / 55000

0.2 = 0.28x + 9350 - 0.17x / 55000

0.2 * 55000 = 0.11x + 9350

11000 = 0.11x + 9350

11000 - 9350 = 0.11x

1650 / 0.11 = x

x = $15000

If x is $15000, this means that the investment in Dogwood trees is $15000.

If x is $15000, this means that the investment in red maple trees is 55000 - 15000 = $40000

4 0

2 years ago