True or false: the price floor of $6 per pound of cheese reduces the total revenue of cheese producers.

Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises

DanielleElmas [232]

Answer:

a. Issuer

The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.

1. c. Corporate bonds

When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.

2. b. Walmart

Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.

3. a. When interest rates increase, the prices of U.S. Treasuries decline.

Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.

4. c. Treasury bonds

US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.

7 0

3 years ago

Explain what is meant by market research.

Lelu [443]

Answer:

Market research is an effective tool to assist your business planning. It is about collecting information that provides an insight into your customers thinking, buying patterns, and location. In addition, market research can also assist you to monitor market trends and keep an eye on what your competition is doing.

Explanation:

5 0

3 years ago

Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of ho

Scrat [10]

Answer:

The second option which 5 years to maturity exhibited a lower price of

$523.95

Explanation:

In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:

a.

PV=FV/(1+r)^n

PV=price of investment

FV=future value=$1000

r= 13.80%.

n=4 years

PV=$1000/(1+13.80%)^4

PV=$596.25

b.

PV=FV/(1+r)^n

PV=price of investment

FV=future value=$1000

r= 13.80%.

n=5 years

PV=$1000/(1+13.80%)^5

PV= $523.95

7 0

3 years ago

Blogs and blogging tools are critical methods in accomplishing which segment of the 4e framework of social media marketing?

labwork [276]

The answer to this question is: Educate
In social media framework, educate refers to the ability to give additional in-depth knowledge about your field of business.
For example, you could use social media to promote your vegetarian products and educate the users on the dietary benefit that they could get by consuming more fruits and vegetables in the process.

5 0

3 years ago

At the beginning of the current period, Bramble Corp. had balances in Accounts Receivable of $196,800 and in Allowance for Doubt

olasank [31]

Answer and Explanation:

The journal entries are shown below:

a. Account receivable Dr $864,300

To Sales revenue $864,300

(Being the sales revenue is recorded)

Cash Dr $687,610

To Account receivable $687,610

(Being the collections is recorded)

2. Allowance for doubtful debts $6,804

To Account receivable $6,804

(Being the written off amount is recorded)

3. Account receivable Dr $3,219

To Allowance for doubtful debts $3,219

(Being the previous written off amount is recorded)

Cash Dr $3,219

To Account receivable $3,219

(Being the recovery is recorded)

4. Bad debt expense $18,075

To Allowance for doubtful debts $18,075

(Being the bad debt expense is recorded)

The computation is shown below:

= $24,000 - $9,510 + $6,804 - $3,219

= $18,075

Only these entries are recorded

3 0

3 years ago