Through the expectations hypothesis and the liquidity preference theory of the term structure of interest rates, liquidity must be zero for the forward rate to be equal to the expectations of future short rates.
<h3 /><h3>What is expectation theory?</h3>
Corresponds to a forecast of short-term interest rates by analyzing them against current long-term interest rates.
Therefore, it is a theory used to assist in better understanding and forecasting short-term securities trading in the future.
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Answer:
$340,000
Explanation:
The computation of Product X’s sales value at the split-off point is shown below:
= Total sales value - Product Y sales value at the split-off point - Product Z sales value at the split-off point
= $600,000 - $150,000 - $110,000
= $340,000
Basically for determining the Product X sales value at the split-off point, we deduct the Product Y sales value and the Product Z sales value at the split-off point from the total sales value
Answer:
can you please tell me the question because it's kind of blurry and I will be glad to answer it if I can
Answer:
1. Executing
2. Directing
3. Continuous process improvement
Explanation:
According to Managerial Accounting Concepts and Principles
1. All of the following are considered phases of the management process except EXECUTING
2. The process by which managers run day-to-day operations is called DIRECTING
3. CONTINUOUS PROCESS IMPROVEMENT is the philosophy of continually improving employees, business processes, and products.
Answer:
Interest rate = 4%
Explanation:
Given:
Face value of bond = $5,000
Annual coupon payment = $200
Interest rate = ?
Computation of interest rate on bond:
Interest rate = (Annual coupon payment / Face value of bond ) × 100
Interest rate = ($200 / $5,000) × 100
Interest rate = (0.04) × 100
Interest rate = 4%
Therefore, annual interest rate on bond is 4%
