All categories

3 years ago

Why do people hold bonds rather than larger savings or checking accounts

1 answer:

4 0

Under what circumstances might they change their portfolios, moving their funds out of bonds into bank accounts? In general, people place their funds in those investments which provide them the highest returns.

You might be interested in

Less certain a cash flow, the ________ the risk, and ________ the present value of the cash flow. higher; lower lower; lower hig

Akimi4 [234]

I think it’s higher the risk and the lower present value

7 0

3 years ago

Read 2 more answers

Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchand

ch4aika [34]

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

3 0

3 years ago

One of the most important in-store factors is the salesperson. This influence can be understood in terms of ________ theory, whi

amm1812

Option (b), The salesperson is one of the most crucial in-store elements. The exchange theory, which emphasizes that each participant provides to the other and anticipates receiving something in return, can be used to explain this influence.

<h3>What does exchange theory actually mean?</h3>

According to the social exchange hypothesis, two people's relationships grow as a result of a process of cost-benefit analysis. In other words, it's a statistic designed to measure the amount of effort a person expends during a face-to-face conversation.

<h3>What are the basic tenets of the exchange theory?</h3>

The basic tenet of the theory of social trade is the concept of costs and benefits. This suggests that people's decisions and behaviors are influenced by their estimations of cost and reward. Costs are the unfavorable outcomes of a decision, including time, money, and energy. Social interactions produce benefits, which are rewards.

Learn more about exchange theory: brainly.com/question/29611150

#SPJ4

6 0

11 months ago

postal express is considering the purchase of a new sorting machine. the sales quote consists of quarterly payments of $37,200 f

Cloud [144]

The five-year sales quote includes quarterly payments of $37,200 at a 7.6% interest rate. The price of the acquisition is $614,184.40.

<h3>Do you mean by PMT payment?</h3>

PMT stands for "payment," therefore the name of the function. A PMT method can estimate your monthly payments, for instance, if you are looking for a $30,000 car loan with a two-year term and an annual interest rate of 7%.

<h3>In the fv formula, what is PMT?</h3>

PV = present value, and FV=PMT(1+i)((1+i)N - 1)/i Future Value (FV) Payment per period (PMT) I = percent per period interest rate N is the number of cycles.

Quarterly Payment = PMT = $37,400

Interest Rates = r = 7.6% per year = 0.076 per year = 0.076 / 4 = 0.019 per quarter

Number of years = 5 years

Number of Payment = n = 5 years x 4 quarters per year = 20 quarters

PV = PMT x (1 - [1 / (1 +r)^n]) / r

PV = $37,200 x (1 - [1 / (1 +0.019)^20]) / 0.019

PV = $614,184.40

Learn more about PMT: brainly.com/question/12890163

#SPJ1

5 0

1 year ago

Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later

Evgesh-ka [11]

Answer:

D. The payback period is less than 2 years.

Explanation:

Discount rate 5%

0 1 2

intital investment -10

cash flow 0 30

Total cash flow -10 0 30

NPV 17.21

IRR 73%

Therefore, The NPV is 17.21 and is positive, the statement is True.

IRR > 50%, Therefore the statement made is True

Accounting rate of return = {[(30 - 10)/10]^(1/2)} - 1

= 41% > 0

Therefore, The statement made is true.

Payback period = 2 years, Therefore the statement made is NOT true.

7 0

3 years ago