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katen-ka-za [31]
3 years ago
15

A certificate of deposit that changes the rate of interest based on the prevailing market interest rate is known as a: A Market

rate CD B Step-up / Step-down CD C Negotiable CD D Renewable CD
Business
1 answer:
8090 [49]3 years ago
4 0

Answer:

B. Step-up/Step-down CD

Explanation:

A bank certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.

Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.

Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.

A Step-up/Step-down certificate of deposit (CD) is a type of CD that changes the rate of interest for a deposit based on the prevailing market interest rate.

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Old Economy Traders opened an account to short-sell 1,550 shares of Internet Dreams at $74 per share. The initial margin require
svetlana [45]

Answer:

A.37%

B.No because the margin is above the requirement at 37%.

C.-118%

Explanation:

Old Economy Traders

a.

1,550 shares*$74 per share = 114,700

margin requirement is 52% so equity =59,644

1 year later price increase to 81

$1550 shares*$81 per share = 125,550

Dividend = $4*1550 = 6,200

Margin = 114,700/131750 = 37%

b.

No because the margin is above the requirement at 37%.

c.

Price of 1550 stock year 1 at 81$/share = 125,550

114,700 – 125,500 = -10800

Rate of return = (-10800 -59,644)/59,644= -118%

8 0
3 years ago
Imagination Dragons Corporation needs to raise funds to finance a plant expansion, and it has decided to issue 15-year zero coup
Vladimir79 [104]

Answer:

a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:

Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2

b) Interest deduction

After 1 year bond value from the above equation is 437.08

437.08 - 411.99 = 25.09

In the 14th year bond value from the above equation is 942.60

1000 - 942.60 = 57.40

c) Straight Line Method

Total Interest Paid = 1000 - 411.99

= 588.01

For yearly calculation

588.01 / 15 = 39.21

Further computation is done in the image below.

8 0
3 years ago
Read 2 more answers
Many small firms seek to establish a particular niche in the market, realizing that they cannot afford to operate on a larger sc
Karolina [17]

Answer:

Letter A is correct. <u>Fostering competition.</u>

Explanation:

In this case, it is correct to say that small businesses are fostering competition.

Competition in the business world can be defined as a situation where two or more companies that supply products are rivals in the quest to conquer the same market and the same customers.

Large companies often have some dominance and influence over the market, which means that they impose various barriers to market entry by other competing companies, especially if they are micro-companies. In the case of the above question, when there are a large number of small companies looking to establish themselves in a specific niche in the market, due to possible retaliation by large companies, together, they are exerting an influence on the market that promotes competition.

4 0
3 years ago
These characteristics set the Linux os apart from window and mac
irga5000 [103]
Linux is a open source operating system where as windows and os x are not .
7 0
3 years ago
Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price, Beaverton made the following expend
salantis [7]

Answer:

$41,500

Explanation:

Calculation to determine What was the initial cost of the machine to be capitalized

Purchase price $35,000

Add Freight $1,500

Add Installation $3,000

Add Testing $2,000

Total Cost $41,500

Therefore the initial cost of the machine is $41,500

3 0
3 years ago
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