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8090 [49]
3 years ago
8

A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is t

he estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Business
1 answer:
quester [9]3 years ago
5 0

Answer:

Option E (143) is the appropriate solution.

Explanation:

According to the question,

The modified duration will be:

= \frac{Macaulay \ duration}{(1+yield)}

= 8\times 1.064

= 8.512

The percentage change in price will be:

= -0.6\times 8 \ percent

= -4.8 (%)

Now,

The EMOD will be:

= 112955\times (1-4.8 \ percent)

= 107533.2 ($)

Or,

The EMAC will be:

= 112955\times (\frac{1.064}{1.07} )^{8.512}

= 107675.7 ($)

Hence,

⇒ EMOD-EMAC=107533.2-107675.7

                                  =-142.5

⇒ EMAC-EMOD=143

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Answer:

c. Encourage team members to socialize online by sharing photos and videos. Reach out to people from cultures where proactively sharing ideas is not valued.

Explanation:

According to a different source, these are the options that come with this question:

a. Speak about everyone on the team as though they are the same to help team members feel they are being treated equally. Do not single people out for special recognition.

b. Understand that some people use online technology more than others and cannot be expected to participate as much. Accept that Internet culture often involves “trolling,” or disrespectful disagreement, and do not interfere if this happens.

c. Encourage team members to socialize online by sharing photos and videos. Reach out to people from cultures where proactively sharing ideas is not valued.

d. To promote a sense of privacy, do not monitor online team communications. Keep information that may change frequently to yourself, as sharing it would be confusing.

This is the strategy that is most likely to help this person develop his team. It is important to understand that, if this is an international team made up of many different people from different countries, then it is likely that most interaction will take place online. Therefore, it is important to encourage them to utilize the online resources that are available to them, such as sharing pictures and videos. It is also important to motivate them to proactively share ideas, especially those who come from countries where this is not particularly valued.

5 0
3 years ago
You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
algol13

The T-Account can be made as follows with the credit of $3,754. The expenses are deducted from the balance as the total credit available.

<h3 /><h3>What is Expense?</h3>

Expenses are the costs that are paid by businesses, these costs are incurred for the operations of business. The expenses are paid from the cash/ bank balance available at the business.

It is recommended that the expenses are in a control and are lower than the revenue generated by the business.

T-Account

Operating Expense Account

$420

$250

$100

$250

Petty Expenses Account

$150

$100

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$1500

$650

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The account are made according to the nature of expenses, there are two expenses that are not to be classified as an expense instead they need to be treated as a capital expenditure that is to be posted in Asset account.

Expenses with one off event and small amount and in general in nature are posted in petty expenses

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4 0
2 years ago
Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i
Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is  </em> $692

b)   PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing  would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

                                  = (10,945 + 29651 + 21094)/19,900

                                     =$3.1

Variable cost per unit of sale = $3.1 + $0.35 =  $3.45

a) Incremental Analysis

<em>Change in Net Income:                               $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) ×   5,350 =                           7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004)                                     <u>(  6370)</u>

<em>Net income                                               </em><em><u>   692</u></em>

<em><u>b) </u></em>   PINA should accept the order because it will increase its net income by $692

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6 0
3 years ago
What are the three activities according to which a statement of cash flows is organized?
HACTEHA [7]

Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.

Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is consistently moving into and out of a business.

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8 0
2 years ago
Departmentalizing decisions increases the risk of __________ leading to a poor decision.
MAXImum [283]

Answer:

Bounded Rationality

Explanation:

To begin with, it is essential to understand the concept of departmentalization.

Departmentalization centers on the idea that departments/divisions within an organization are grouped and/or sectioned, using some identified benchmarks. In extension, Departmentalizing, is simply the acts of engaging in departmentalization.

Bounded rationality, is a phenomenon that states that human reasoning and extension, logic could be threatened by a number of constraints. The constraints here could be human, material and physical resources. The implication is that an individual is not in possession of full details and information that could influence or shape his position.

Hence, by departmentalizing, an organization has placed a constraint on the amount of information accessible to that department, under the bigger context of an organization. Thus, the departments' rationality has been bounded and this could ultimately spiral into poor decision making, principally because of lack of detailed information.

6 0
3 years ago
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