Answer:
<em>$111.11 or 111.11% of face value</em>
Explanation:
Assuming the face value of $100 for all bonds (without loss of generality)
If the two year coupon bond is repackaged as a one year zero coupon bond paying $12 after one year and another two year bond paying $112 after 2 years, the price of the two zero coupon bonds are given as
Price of one year Zero coupon bond = 12/1.05 = $11.43 (one year ZCB has YTM of 5%)
Price of two year Zero coupon bond = 112/1.06^2 = $99.68 (two year ZCB has YTM of 6%)
So, one can sell the repackaged bonds at a price = $11.43+ $99.68 = $111.11 or 111.11% of face value
Answer: Please refer to Explanation
Explanation:
DR Bonds Payable ............... $ 72,100
DR Premium on Bonds Payable (74,950 - 72,100) ...... $2,850
CR Cash ...................................... $70,100
CR Gain on Discharge of Bonds ($74,950 - $70,100) $4,850
(To record retirement of premium bond before time)
If you need any clarification do comment.
Answer:
It is the blend of marketing strategies for product, price, distribution, and promotion
Explanation:
Marketing mix describes strategies used by a company to promote its brand or product. A marketing mix is made up of Price, Product, Promotion and Place.
Answer:
- Invest $8,470 in X
- Invest $2,530 in Y.
Explanation:
The following expressions can be formed;
Let x and y be the proportions
x + y = 1
0.15x + 0.1y = 13.85%
Expressing y in terms of x;
x + y = 1
y = 100 - x
0.15x + 0.1 ( 1 - x) = 13.85%
0.15x + 0.1 - 0.1x = 13.85%
0.05x = 13.85% - 0.1
x = 13.85%0.05 - 0.1/0.05
x = 77%
Invest 77% in X = 77% * 11,000
= $8,470
Invest in Y
= 11,000 - 8,470
= $2,530
Answer:
The correct answer is option a and c.
Explanation:
The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.
At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.
The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.
