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4 years ago

When you purchase a u.s. savings bond, you are loaning money to the government.'?

Business

1 answer:

svlad2 [7]4 years ago

6 0

The correct answer is true.

The United States issues savings bonds, which is equivalent to loaning them money. Savings bonds are a very safe investment for the investors and gives the United States cash flow.

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As a measure of economic welfare, gross domestic product underestimates a country's production of goods and services when there

Ronch [10]

Answer:

is a measure of the overall economic output ... The GDP refers to the value of goods and services that the country produces. ... GDP is not adjusted for crime and other social problems (ex: increases in crime ... real GDP omits household production and it underestimates the value

7 0

3 years ago

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly.

NISA [10]

Answer:

Total PV= $2,736.39

Explanation:

Giving the following information:

Year Cash Flow

1 $ 870

2 950

3 0

4 1,540

First, we need to calculate the real annual discount rate:

Quarterly Discount rate= 0.08/4= 0.02

Real annual interest rate= [(1+i)^n] - 1

Real annual interest rate= [(1.02^4) - 1]

Real annual interest rate= 0.08243

Now, we can calculate the present value of the cash flows:

PV= Cf/(1+i)^n

Year 1= 870/1.08243= 803.75

Year 2= 950/1.08243^2= 810.82

Year 4= 1,540/1.08243^4= 1,121.82

Total PV= $2,736.39

7 0

3 years ago

Fascinating Fez, a 125-year-old hat and cap manufacturer, markets very high-quality stylish headwear, many of which cost more th

alexandr402 [8]

Fascinating Fez is using a cost-focus strategy is False

Explanation:

The business aims to achieve a competitive advantage in its particular market segment through a cost based approach.

In this case, differentiation approach is the technique used by the hat maker. When applying this approach, a organization insists on the supply of differentiated goods, namely exclusive goods of superior quality this differ from rivals.

Cost concentration is on cost savings in specific markets, thus discriminating between different goods that meet the needs of customers in a broad business segment.

5 0

3 years ago

Assume that you have entered into a swap agreement for a notional of 100M USD under which every 6 months you agree to pay LIBOR

hodyreva [135]

Answer:

C) 0.5 USD

Explanation:

Swap is an arrangement in which two parties exchange their interest rates for mutual benefit. One party may receive fixed rate and other will receive floating rate based on LIBOR. In the given scenario the swap agreement was originated when the LIBIOR was 3%. The fixed rate was set to be at 4% so the net gain at the time of inception was 1%. When LIBOR increased after six month the net gain declined to only 0.5%.

4 0

3 years ago

A company paid $150,000, plus a 6% commission and $4,000 in closing costs for a property. The property included land appraised a

Oxana [17]

Answer:

Land $81,500; Land Improvements $32,600; Building $48,900

Explanation:

Calculation for What should be the allocation of this property's costs in the company's accounting records

First step is to calculate the total value

Total value= $87,500 + $35,000 + $52,500

Total value= $175,000

Second step

Land appraised = $87,500 ÷ $175,000

Land appraised= 0.50

Land improvement = $35,000 ÷ $175,000

Land improvement = 0.20

Building appraised = $52,500 ÷ $175,000

Building appraised = 0.30

Third step is to calculate the Total Amount

Total Amount= $150,000 + $150,000 × 0.06 + $4,000

Total Amount= $150,000 + $9,000 + $4,000

Total Amount= $163,000

Last step is to calculate the allocation of this property's costs in the company's accounting records

Land appraised = $163,000 × 50%

Land appraised = = $81,500

Land improvement = $163,000 × 20%

Land improvement= $32,600

Building appraised = $163,000 × 30%

Building appraised = $48,900

Therefore What should be the allocation of this property's costs in the company's accounting records is :

Land $81,500; Land Improvements $32,600; Building $48,900

4 0

3 years ago