Answer:
5.32%
Explanation:
The computation of the coupon rate on the bonds is shown below:
As we know that
Current price = Annual coupon × Present value of annuity factor(6.1%,8 ) + $1,000 × Present value of discounting factor(6.1%,8)
$952 = Annual coupon × 6.18529143 + $1,000 × 0.622697222
Annual coupon is
= ($952 - 622.697222) ÷ 6.18529143
= $53.24
Now
Coupon rate is
= Annual coupon ÷ Face value
= $53.24 ÷ $1,000
= 5.32%
Working notes:
1. Present value of annuity is
= Annuity × [1 - (1 + interest rate)^-time period] ÷ rate
= Annual coupon × [1 - (1.061)^-8] ÷ 0.061
= Annual coupon × 6.18529143
And,
2.Present value of discounting factor is
= $1,000 ÷ 1.061^8
= $1000 × 0.622697222
Answer:
All statements are TRUE except Option "A"
Explanation:
Accounting control history is used for policy-making objectives, and historical information is redundant.
- Managerial accounting is used for short-and long-term decision making that involve overall financial health. It helps businesses make administrative decisions–meaning to help increase the efficiency and productivity of the business–while also helping to make long-term investment decisions.
Therefore,all answers are correct except "A"
Answer:
The occurrence would be more impactful in 1995 as the % drop is higher
Explanation:
In 1995, % change in DJIA = 135 / 4510.79 = 0.029928 = 2.99%
Today, the DJIA is at 29,263.48 . The % change in DJIA = 500 / 29,263.48 = = 0.017086143 = 1.71%
.
Thus, In 1995, the occurrence would be more impactful as the % drop is higher
Answer:The potential employees would view the company with less confidence because of the company’s past history
Explanation:
Answer:
a. comparative advantage
Explanation:
Comparative advantage is an economic concept that aims to explain differences in production and trade between two different countries or nations, based on the same product. The idea is to analyze which stakeholder has the lowest opportunity cost of the same good. Opportunity cost is a concept associated with productive efficiency, which aims to measure how much a country fails to earn in other activities when deciding a given good. Thus, the country with the lowest opportunity cost will have greater productive efficiency and, consequently, will have the comparative advantage in the production of the good. Thus, this country will specialize in the production of this good and other countries will produce other goods for which their respective opportunity costs are lower. Then countries trade products in international trade and everyone wins.
