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Fynjy0 [20]
3 years ago
14

Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with two years to maturity has a coupon rate of 6%. The

yield to maturity (YTM) of the bond is 9.90%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note:
Business
1 answer:
velikii [3]3 years ago
3 0

Answer:

Value of treasury note = 738000

Explanation:

Value of treasury note = Interest * PVAF(9.9%,5Years) + Maturity Value * PVF(9.9%,5year)

= 30000 * 3.800 + 1000000 * 0.624

= 738000

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XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in len
xeze [42]

If the previous year did not see more than a five percent increase in these costs, there is no change in the rent, the clause will be the Escalator clause.

<h3>What is a clause?</h3>

It's a particularly precise clause in a legal agreement that refers to a key point of agreement between the contracting parties. A clause establishes the terms wherein the parties will conduct during the terms of the contract.

Terminology in a sales contract that raises your purchase price by a specific amount above competing offers till the offer reaches its maximum price you're ready to pay is called an escalation clause.

This will help to enhance the appeal of an offer, it also informs the seller of the exact amount you're willing to spend. This will also help to negotiate on price to make the deal close.

Therefore, the correct answer will be the Escalator clause.

Learn more about the clause, here:

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8 0
2 years ago
Dodge, Incorporated acquires 15% of Gates Corporation on January 1, 2011, for $105,000 when the book value of Gates was $600,000
IceJOKER [234]

Answer:

a. $80,000

Explanation:

In this question we are only concerned about the net income reported by Dodge on its income statement.

First we need to calculate ownership % in 2012 = 15% + 25% = 40%

Net income of 2012 (Gates) = $ 200000

hence Dodge will report net income of 40% of 200000 = $80000

Hence the correct answer is A

Note: Dividends will not affect the investors net income but it would reduce the investment value of Gate reported by Dodge (as it is seen as a return on investment)

5 0
3 years ago
Your aunt has promised to give you $5,000 when you graduate from college. You expect to graduate three years from now. If you sp
ikadub [295]

Answer:

The present value of the promised gift will:

be less than $5,000.

Explanation:

The present value of $5,000 to be received in three years' time from today is less than $5,000 received.  This is explained by the time value of money concept.  If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751).  This means that $5,000 received in year 3 is less than $5,000 received today.

3 0
3 years ago
1. Write about whether or not you believe productivity would go up, down, or stay the same in an enterprise where the workers ar
kolezko [41]

Answer:

Productivy would go up only as long as some of the workers can become competent managers.

Explanation:

The problem with worker ownership of the means of production (the firm), which is what socialism is about, is that workers do not necessarily have managerial skill, and as result, are likely to be unable to run the company efficiently.

In case this does not happen, and the workers manage to run the company well, GDP would increase because productivity in the firm would rise. Inflation would likely fall down because more productivity means more output of goods and services, and inflation tends to have a inverse relationship with output (although it also depends on other variables like the rate of growth of the money supply).

Finally, another macroeconomic variable that would positively affected is employment rate, because a more efficient company would likely require new workers.

7 0
3 years ago
Combust Con Inc. specializes in manufacturing internal combustion engines. Recently, Combust Con has decided to create a divisio
KengaRu [80]

Answer:

The correct answer is letter "D": Ashton should consider preparing new job descriptions since new jobs will be created in the organization.

Explanation:

Whenever a firm engages in new operations and requires new personnel, the Human Resources (HR) department must analyze the profile of the employee that will be needed to determine what type of applicant that will approve. Before that, a clear description of the new workers' duties and skills must be outlined so that at the moment of publishing the offering, the company makes sure they will attract the proper candidates.

Thus, Ashton must get ready the job descriptions of the new workers that will cover the positions fo the new flexible fuel division of the corporation he works for.

6 0
4 years ago
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