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Bogdan [553]
3 years ago
6

Corporate Bond A returns 5 percent of its cost in PV terms in each of the first five years and 75 percent of its value in the si

xth year. Corporate Bond B returns 8 percent of its cost in PV terms in each of the first five years and 60 percent of its cost in the sixth year. If A and B have the same required return, which of the following is/are true?
I. Bond A has a bigger coupon than Bond B.
II. Bond A has a longer duration than Bond B.
III. Bond A is less price-volatile than Bond B.
IV. Bond B has a higher PV than Bond A.
Business
1 answer:
melamori03 [73]3 years ago
6 0

Answer:

Explanation:

Only II & IV

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Classify the total costs of each of the following as variable, fixed, mixed, or step.a. Straight-line depreciation on a building
Alika [10]

Answer:

The answer is:

A - Fixed Cost

B - Mixed Cost

C - Mixed Cost

D - Variable Cost

E - Variable Cost

F - Variable Cost

G - Mixed Cost

H - Fixed Cost

I - Variable Cost

J - Mixed cost

Explanation:

First let's define the terms:.

Fixed cost is a cost that wont change with varying output. Whether an output increases or decreases, it doesn't change.

Variable cost is a cost that changes with output. If output increases, variable cost increases and vice-versa

Mixed cost is also known as semi-variable cost. It has a combination of both fixed and variable costs

A - Fixed Cost

B - Mixed Cost

C - Mixed Cost

D - Variable Cost

E - Variable Cost

F - Variable Cost

G - Mixed Cost

H - Fixed Cost

I - Variable Cost

J - Mixed cost

5 0
3 years ago
You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of th
lys-0071 [83]

Answer:

650

Explanation:

A call option is an option to buy a product or asset at a stated price at a later date. The risk of call option is capped at premium for buying the option. Wildwood corporation will incur cost of 650 to establish the bull money spreads with calls.

8.5 +4.5 = 13

13 * $50.00 = $650

3 0
3 years ago
Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he know
kvasek [131]

The first thing Garrett should do is to "identify issues that need to be addressed."

<u>Explanation:</u>

The selling, distribution and promotion of alcoholic beverages includes consumer protection information, health hazards, and environmental factors. And Garrett would just get that from the appropriate stakeholders such as regulatory bodies. Garrett must therefore first collect information and classify the interested parties.

Garret should also go through all the legal and mandatory channels which are needed to be crossed before entering into such a beer distributorship business program. For an instance like asking license number, GST number, affidavit regarding any future consequence which may result into some loss, etc.

5 0
3 years ago
An online retailer monitors customer complaints through social media. There are seventeen categories associated with these compl
Gnom [1K]

Answer: Pareto Chart

Explanation:

A Pareto Chart is a type of chart that mixes both the line and bar graphs.

It works by putting the Frequency of the complaint categories on the vertical axis and the category on the horizontal axis.

The frequency bars are arranged from the most frequent to the least frequent and then there is a line that shows the cumulative frequencies of the complaint categories.

The benefit of this graph is that one can see the most frequent complaint as soon as they look at the graph which is why it is most useful to this question.

I have attached an example to better explain.

5 0
3 years ago
On January 1, 2018, Charlie Co. received $308,000 for bonds with a face amount of $320,000. The stated rate of interest is 8% wh
avanturin [10]

Answer:

$30,800

Explanation:

Data provided in the question:

Carrying value of bond = $308,000

Face value = $320,000

Interest rate = 8% = 0.08

Market rate = 10% = 0.10

Now,

Interest expense to be recognized in 2018

= ( Bond carrying value ) × ( Market rate of interest )

or

Interest expense to be recognized in 2018 = $308,000 × 10%

or

Interest expense to be recognized in 2018 = $30,800

5 0
4 years ago
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