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4 years ago

The Fed funds rate is the rate that

Business

1 answer:

Akimi4 [234]4 years ago

5 0

Answer:

Option (D) is correct.

Explanation:

The federal funds rate refers to a interest rate that is charged from one financial institution by the other financial institution for lending funds which are kept with the federal reserve in the form of excess reserves. It plays a very important in making an impact on the financial and economic conditions of a nation. Fed rate is normally associated with the most creditworthy financial institutions.

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Oil Products Company purchases an oil tanker depot on January 1, 2017, at a cost of $600,000. Oil Products expects to operate th

anzhelika [568]

Answer:

The Journal entries are as follows:

(i) On January 1, 2017

Plant Assets A/c Dr. $600,000

To cash $600,000

[To record the depot]

(ii) On January 1, 2017

Plant Assets A/c Dr. $41,879

To To Asset retirement obligation $41,879

[To record the Asset retirement obligation]

Missing information: Based on an effective-interest rate of 6%, the present value of the asset retirement obligation on January 1, 2017, is $41,879.

4 0

4 years ago

Becky hunter is an accountant employed by faf enterprises. recently she has spent much of her time working on defining measures

boyakko [2]

Becky is a private accountant whose work is mainly with managerial accounting. Managerial accounting is a process o identifying, measuring, analyzing, interpreting, and communicating information in order to achieve the goals of an organization. Another name for managerial accounting is cost accounting.

7 0

3 years ago

You purchase a twenty year zero coupon bond with a yield of 5%. One year later you sell the bond at a yield of 4%. What is your

astraxan [27]

Answer:

25.94%

Explanation:

Assume, Face value of bond =$1000

Purchase price of twenty year zero coupon bond = 1000/((1+i)^N) . Where, yield = 5% =0.05 , N= number of years to maturity =20

==> Purchase Price = 1000/(1.05^20)

Purchase Price = 1000/2.65329770514

Purchase Price = $376.89

Selling Price after one year: 1000/(1+I)^19. Where i=yield=4%=0.04, N=19

Selling Price=1000/(1.04^19)

Selling Price = 1000/2.10684917599

Selling Price = $474.64

Rate of Return = (474.64/376.89) - 1

Rate of Return = 1.25935949481281 - 1

Rate of Return = 0.2594

Rate of Return = 25.94%

7 0

3 years ago

If you are stopped by a police officer for driving without having all passengers under the age of 18 properly restraint, you can

Ivan

Answer:

D)3 points

Explanation:

When children are involved, seatbelt tickets may mean points.

You won't typically get points if cited for failing to wear your seatbelt, but in New York, if you are ticketed for having a child in the car under age 16 without a seatbelt, the violation adds 3 points to your driving record. A seatbelt ticket will raise your rates by an average of three percent

4 0

3 years ago

Bond Valuation and Changes in Maturity and Required Returns Suppose Hillard Manufacturing sold an issue of bonds with a 10-year

g100num [7]

Answer:

It will be sold at $1,186.71

Explanation:

We will calculate the present value of the cuopon payment and the maturity at the new market rate of 7%

The coupon payment will be calcualte as the PV of ordinary annuity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C $50 (1,000 x 10%/2 as there are 2 payment per year)

time 16 (8 years x 2 payment per year)

rate 0.035 (7% rate / 2 payment per year)

$50 \times \frac{1-(1+0.035)^{-16} }{0.035} = PV\\$

PV $604.7058

The maturity will be calculate as the PV of a lump sum

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 8 years

rate 0.07

$\frac{1000}{(1 + 0.07)^{8} } = PV$

PV 582.01

The market price will be the sum of both:

PV cuopon $604.7058

PV maturity $582.0091

Total $1,186.7149

6 0

3 years ago