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alekssr [168]
3 years ago
11

You want to decide whether to invest in zero-coupon bonds or not. Currently, the yield to maturity of these zero-coupon bonds fo

r the one-year is 8% and for the two-year is 9%. Given this information what is the forward rate of interest for the second year?
a. 10.01%
b. 8%
c. 9.2%
d. 3.25%
Business
1 answer:
kirza4 [7]3 years ago
5 0

Answer:

The forward rate of interest for the second year is;

a. 10.01%

Explanation:

<em>Step 1: Determine the 1 year final value of the investment</em>

The formula for calculating the final value for the 1 year investment is;

F.V=P.V(1+r)

where;

F.V=final value

P.V=present value

r=yield to maturity

In our case;

F.V=unknown

P.V=x

r=8%=8/100=0.08

replacing;

F.V=x(1+0.08)=1.08 x

<em>Step 2: Determine the 2 year final value of the investment</em>

Using the formula;

F.V=P.V(1+r)²

where;

F.V=unknown

P.V=x

r=9%=9/100=0.09

replacing;

F.V=x(1+0.09)²=1.1881 x

<em>Step 3: Determine the forward rate of interest for the second year</em>

The forward rate of interest can be expressed as;

forward rate of interest=(2-year future value/1-year future value)-1

replacing;

forward rate of interest=(1.1881 x/1.08 x)-1=0.10009×100=10.01%

forward rate of interest=10.01%

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Answer:

B.  telemarketing

Explanation:

In the telemarketing, the company or an individual is directly in contact with its customer with respect to the product over the phone call so that they could aware of the product

In this, the face to face interaction is not done

Therefore as per the given situation, the option B is correct as in this met the criteria.

5 0
2 years ago
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A covert operation is defined and in which the president has certified its importance to america's national security
FrozenT [24]
This is a true statement
5 0
3 years ago
Complete each statement with the term that correctly defines.
Mashcka [7]

Answer:

a. Outperform.

b. Gatekeepers.

c. Leveraging.

d. Value creation.

e. Producer.

Explanation:

A platform can be defined as a type of business model that creates value or focuses on assisting participants by facilitating exchanges and interactions between two or more interdependent groups of participants, who are mostly consumers and producers of finished goods and services.

This simply means that, a platform usually creates an effective and efficient market or community network with needed resources, for better interaction and transaction among various participants. Some examples of a platform business are brainly, airbnb, apple, microsoft, uber etc.

The notable characteristics and advantages of a platform business are;

a. Platform businesses tend to frequently outperform pipeline businesses.

b. Platforms scale more efficiently than pipelines by eliminating gatekeepers.

c. Platform businesses leveraging digital technology can grow much faster.

d. Platforms unlock new sources of value creation and supply.

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2 years ago
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asambeis [7]

the IRS has the authority to impose penalties on tax professionals.

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It is a division of the Treasury Department and is run by the Commissioner of Internal Revenue, who is picked by the US President for a five-year term. Among the responsibilities of the IRS are helping taxpayers with their taxes, pursuing and resolving cases of incorrect or fraudulent tax files, and managing a number of benefit programs, including the Affordable Care Act.

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5 0
11 months ago
Leker exchanged real property that was used exclusively for business and had an adjusted tax basis of $20,000 for new real prope
goldfiish [28.3K]

Answer:

$17,000

Explanation:

Leker's Old Property Adjusted Tax Basis = $20,000

To calculate the new basis, subtract the $3000 recieved in cash from the new property.

New Tax Basis; $20,000-$3,000= $17,000

The transaction of Leker to exchange a real property for another led to a loss: Meaning a Property of $20,000 was exchanged for a property of $10,000+ $3,000 (cash)= $13,000

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Due to the loss no gain is recognized and the $3000 will reduce the basis for his new asset.

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3 years ago
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