Answer:
The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Explanation:
the duration of the perpetuity = (1+YTM)/YTM
= (1+0.04)/0.04
= 26 years
the weights of the bonds = w
5*w + 26*(1-w) = 15
5*w + 26 - 26*w = 15
21*w = 11
w = 0.52
Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Answer:
I think it's A. or C. but I really think it's C.
Answer:
The answer is C.
Explanation:
If workers demand and receive higher real wages the cost of production will rise. This is because workers(labor) is an input of production. The wages is the reward for the direct labor for work done. So increase in wages lead to an increase cost of production.
Due to this, the short-run aggregate supply curve shifts leftward i.e reduces the market supply because producers will produce less at a high cost of production and produce more at a lower cost of production.
<span>Producers of wood pulp often forward integrate into the production of paper in order to exploit technical economies. By also owning paper making plants they can avoid costs of removing waste, and better use it in order to make even more profits.</span>
Answer:
$6,000 LTCG
Explanation:
Calculation to determine the amount and character of the gain or loss that Monte recognizes
Using this formula
Recognized gain or loss =Amount realized -Basis
Let plug in the formula
Recognized gain or loss=(1,000 Shares*$54 per share)-(1,000shares*$48 per share)
Recognized gain or loss=$54,000-$48,000
Recognized gain or loss=$6,000 LTCG
Therefore the amount and character of the gain or loss that Monte recognizes is $6,000 LTCG reason been the any gain Amount on the sales of property that was inherited are often tend to be LTCG
