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marissa [1.9K]
3 years ago
5

The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th

e liquidity premium is 1.75%, what is the yield on a bond with three years to maturity
Business
1 answer:
sveticcg [70]3 years ago
4 0

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

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During September, the capital expenditure budget indicates a $280,000 purchase ofequipment. The ending September cash balance fr
Mariulka [41]

Answer:

$260000

Explanation:

$280k  purchase equiment >> Outflow of cash

$40,000>> Operative Cash >> Inflow Cash

$260k >> cash loan in order to achieve balance

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$20000 >> Cash balance

5 0
3 years ago
on june 19, a u.s. company sold and delivered merchandise on a 30-day account to a german corporation for 190,000 euros. on july
Lesechka [4]

On June 19 the accounts receivable should be recorded at the spot rate: $228,190 ($190,000 Euros * $1.201), which is the rate at which the Euro and the US Dollar were being exchanged at the time.

Many US-based enterprises sell goods to companies abroad. Depending on the discussions and the circumstances surrounding the sale, these sales may be made in US dollars or in another currency. If the sale is made in a foreign currency, the US-based company will be responsible for any fluctuations in the exchange rate from the time the sale and receivable are recorded until the time the foreign currency is paid for the related foreign currency-related receivable.

The accounts receivable should be recorded (converted from Euros to US Dollars) at the spot rate on June 19: 190,000 Euros * $1.201, which is the exchange rate at that time between the Euro and the US Dollar, equals $228,190.

To learn more about Accounts Receivables, refer to this link:

brainly.com/question/14032135

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8 0
10 months ago
Give the meaning and nature of Foreign direct Investmen.​
Inessa [10]

Answer:

foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. ... However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies

6 0
3 years ago
A business landowner has a duty to reasonably maintain his or her property for safety. when the business invites guests or custo
Sunny_sXe [5.5K]

if a business invites guests or customers onto its premises, then that business has the duty to c. warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.

<h3>What is the duty of a business to its guests?</h3><h3 />

When a business gets guests on its premises , it has two duties as regards their safety. The first is to warn them about potential harm or danger that they might face.

The second duty is to offer some reasonable protection to the guests in case of any foreseeable risk of harm.

Options for this question include:

  • a. warn invitees and trespassers of, and reasonably protect them from, a foreseeable risk of harm or danger from something on the premises.
  • b. reasonably protect invitees from every possible risk of harm or danger that could exist on the premises.
  • c. warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.
  • d. warn invitees of all risks, even of an obvious risk.

Find out more on the duties of a business to customers at brainly.com/question/24553900

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5 0
1 year ago
How is product placement different from a commercial?
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A product placement is part of an existing story. Unlike an advert you aren’t watching a product placement for the product but for the story it is found in.
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