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Nimfa-mama [501]
2 years ago
13

An investor wishes to buy a new issue of U.S. Government agency bonds. You recommend that the customer purchase Federal Home Loa

n Bank bonds with a 20 year maturity. An investor who purchases the new issue of Federal Home Loan Bank bonds can expect to pay:
A par

B par plus a mark-up

C discount

D discount plus a mark-up
Business
1 answer:
sukhopar [10]2 years ago
6 0

Answer:

A par

Explanation:

In order to close the housing gap, the Federal Home Loan Bank (FHLM) takes all necessary steps to ensure funds are available for home mortgages and construction of residential houses issues Federal Home Loan Bonds (FHLB) also called called agency bonds, The bonds are sold by financial institutions, the income from FHLB are only subjected to federal tax but  exempted from state and local income-tax.

New bonds are said to be issued in the primary market in which case it is issued at par. But when traded in the secondary market, that is, when someone wants to resell, it may be sold at a lower or higher price, this is because of fluctuation in interest rate.

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The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventor
Gelneren [198K]

Answer:

Since the benefits of adopting a just-in-time inventory management system are $333,000, and these benefits are permanent; then we can assume that the company should be willing to pay up to $333,000 for installing the system. This amount varies depending on maintenance expenses or the costs of operating the system.

Explanation:

3 0
2 years ago
Refer to Exhibit 3-9. Consumers view X and Y as substitutes. If the price of Y increases as a result of a decrease in the supply
Sever21 [200]

Answer:

Increase in Demand , Increase in Equilibrium Price & Equilibrium Quantity

Explanation:

Demand i.e buyers ability & willingness to buy, has a factor affecting : 'Price of Other Goods - Substitute Goods', which can be inter changeably used. Substitute goods' price & quantity are directly related because- rise in price of a good makes other good relatively cheaper & increases latter's demand and vice versa.

Similarly, If X & Y are substitutes - Increase in price of Y makes it relatively expensive, reduces its demand & increases X demand by making it  relatively cheaper (shifts demand curve rightwards).

Increase in X demand  & rightward shift in demand curve creates Excess Demand, causing competition among buyers & increasing EquilIbrium Price & equilibrium quantity at new equilibrium.

7 0
2 years ago
Richard has $500.00 to invest, but he is willing to borrow money to increase the size of his investment. How much should Richard
liubo4ka [24]

Answer:

c. $125.00

Explanation:

Let us assume the x for invested in portfolio

Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return

x × 7% + (1 - x) × 3% = 8%

7% x + 3% - 3% x = 8%

4% x = 5%

X = 1.25

Now the invested amount would be

= 1.25 × $500

= $625

So, the borrowed amount would be

= $625 - $500

= $125

8 0
2 years ago
Michael jones owns a web design firm. the way michael prices his products is to determine what consumers are willing to pay, and
Mars2501 [29]
<span>Value based pricing. Value-based pricing is not based on overhead cost like material or labor costs. Instead, valued-based pricing depends on the consumers' perception of the value of the product i. e the seller's prices are based on the value of the product as perceived from the customer's perspective. Here, the value of the commodity is not determined by summing up the costs of production, rather it depends on not just the product's uniqueness but something even deeper: Customer's emotion! Prejudice! Or if/she has a staunch preference say for a certain brand. This type of pricing strategy is common in the fashion industry, the automotive industry, name-brand pharmaceuticals, and personal care.</span>
5 0
2 years ago
Greenwood Company manufactures two products; 15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwid
lbvjy [14]

Answer:

1) Plant-wide overhead rate = Total estimated overhead ÷ Direct labor hours

                                           = $728,900 ÷ 10,000

                                           = $73 per DLH

2) Product Y

manufacturing overhead cost = $73 × 8,700 = $635,100

Product Z

manufacturing overhead cost = $73 × 1300 = $94,900

3) Machining ⇒ $227,000 ÷ 11,000 = $21 per MH

<h2>Explanation:</h2>

              <u>Using ABC</u>

Step 1: Identify cost activities and their cost drivers

- Machining ⇒ Machine hours

- Machine Setups ⇒ No. of setups

- Production design ⇒ No. of products

- General factory ⇒ Direct Labor hours

Step 2: Assign overhead costs to activities identified

- Machining ⇒ $227,000

- Machine Setups ⇒ $153,900

- Production design ⇒ $91,000

- General factory ⇒ $257,000

                      <em>Sum</em> = <em>$728,900</em>

Step 3: Calculate Total Estimated Cost Driver Activity

Machining ⇒ 11,000 MHs

- Machine Setups ⇒ 270 setups

- Production design ⇒ 2 products

- General factory ⇒ 10,000 DLHs

Step 4: Calculate overhead rates

- Machining ⇒ $227,000 ÷ 11,000 = $21 per MH

- Machine Setups ⇒ $153,900 ÷ 270 = $570 per setup

- Production design ⇒ $91,000 ÷ 2 = $45,500 per product

- General factory ⇒ $257,000 ÷ 10,000 = $26 per DLH

Step 5: Apply overheads to product

Product Y

- Machining ⇒ 8,700 × $21 per MH =$182,700

- Machine Setups ⇒ 60 × $570 per setup = $34,200

- Production design ⇒ 1 × $45,500 per product = $45,500

- General factory ⇒ 8,700 × $26 per DLH = $226,200

                                                   <em>Sum</em> = <em>$488,600</em>

Product Z

- Machining ⇒ 2,300 × $21 per MH =$48,300

- Machine Setups ⇒ 210 × $570 per setup = $119,700

- Production design ⇒ 1 × $45,500 per product = $45,500

- General factory ⇒ 1300 × $26 per DLH = $33,800

                                                  <em>Sum</em> = <em>$243,700</em>

<em></em>

                   <u>Using Plant-wide overhead </u>

Plant-wide overhead rate = Total estimated overhead ÷ Direct labor hours

                                           = $728,900 ÷ 10,000

                                           = $73 per DLH

Product Y

manufacturing overhead cost = $73 × 8,700 = $635,100

Product Z

manufacturing overhead cost = $73 × 1300 = $94,900

5 0
2 years ago
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