1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Liula [17]
2 years ago
7

You will be paying $10,300 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%.

Business
1 answer:
Ahat [919]2 years ago
5 0

Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63

Duration of obligation is 1.4808 years.

The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.

If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.

Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)  

- Cutiepatutie ☺❀❤

You might be interested in
How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treat
Katen [24]

Answer:

In the description section underneath the overview per the particular context is illustrated.

Explanation:

  • Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
  • This contributes to consumption growth, moving the consumer surplus towards Wanda's goods to the right, contributing towards increased costs.
  • One more scenario maybe though in the immediate future, her Wanda commodities demonstrate no positive effects, resulting throughout a decline in terms of trade.

Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.

7 0
2 years ago
The following are common categories on a classified balance sheet. a) Current assets b) Long-term investments c) Plant assets d)
noname [10]

Answer:

Land not currently used in operations - Long-term investments

Notes payable (due in five years) - Long-term liabilities

Accounts receivable - Current assets

Trademarks - Intangible assets

Accounts payable - Current liabilities

Store equipment - Plant assets

Wages payable - Current Liabilities

Cash - Current assets

8 0
3 years ago
On january 1, 2013, a company sold a piece of equipment for $30,000 which it had used for several years. the equipment had cost
Tema [17]
Book value on the date of disposal
Cost of the equipment - accumulated depreciation
45000-20000=25000

Gain on disposal of the equipment
Proceeds from sales - book value on the date of disposal
30000-25000=5000

The amount of gain on disposal (5000) is reported under “Other revenues and
gains” section of the income statement which increase the profit which transferred into shareholders equity. Also, the account of the equipment will be zero

So the answer is d

Hope it helps!
3 0
2 years ago
What term is used to mean employee expertise and politeness and their ability to convey trust?
melomori [17]

Answer:

The term is Assurance

Explanation:

Assurance is the term that is used to mean employee expertise and politeness and their ability to convey trust. It refers to the employee's knowledge and courtesy and thereby shows his ability to convey trust.

Employees that possess the virtue of assurance in the workplace give their employers the opportunity to trust them. Such employees perform well at work.

4 0
3 years ago
On July 1, Raney Corporation purchases 690 shares of its $4 par value common stock for the treasury at a cash price of $9 per sh
-BARSIC- [3]

Answer:

Date      Particular                                       Dr.        Cr.

Jul-1       Treasury stock                          $6,210

             Cash                                                         $6,210

Sep-1     Cash                                          $4,840

             Treasury stock                                         $3,960

             Paid-in capital - Treasury stock              $880

Explanation:

Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.

Purchase of Treasury Stock

Treasury Stock = 690 x $9 = $6,210

Sales of Treasury Stock

Cash Receipt = 440 x $11 = $3,300

Treasury Stock = 440 x $9 = $3,960

Paid-in capital - Treasury stock = 440 x $2 = $880

5 0
3 years ago
Other questions:
  • Benji works for a private firm that has been contracted to examine the books of accounts of the sanborn corporation. after she h
    7·1 answer
  • What is the smallest unit of data on the hard drive? folders sectors gigabytes clusters?
    14·1 answer
  • Explain why the offer price is used to calculate the investment in a load mutual fund instead of the net asset value.
    12·2 answers
  • Francis interviews two candidates for an administrative assistant position that will require a fair amount of project management
    12·1 answer
  • What condition is necessary for a fiat money system to work? customers with checking accounts cannot earn interest on those acco
    5·2 answers
  • Energizer emphasizes the importance of a relationship marketing. Why?
    15·1 answer
  • The owner and a property manager sign a property management agreement. The property manager advertises the property, shows the r
    6·1 answer
  • The company’s choice of its name, Plymouth Rock Assurance, and its motto, "More Than Just Insurance," indicates the company is
    5·1 answer
  • Why does a surplus exist under a binding price floor?
    7·1 answer
  • Career readiness represents the extent to which you possess the ________ desired by employers.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!