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amm1812
3 years ago
12

Consider the following yields to maturity on various one-year zero-coupon securities: Security: Treasury AAA Corporate BBB Corpo

rate B Corporate Yield (%): 4.6 4.8 5.6 6.2 The price (expressed as a percentage of the face value) of a one-year, zero-coupon, corporate bond with a BBB rating is closest to:
Business
1 answer:
Katyanochek1 [597]3 years ago
4 0

Answer:

94.70%

Explanation:

The computation of the price expressed as a percentage of the face value is given below:

= Price ÷ Face value × 100

= (Face value ÷ (1 + YTM)) ÷ Face value × 100

= ($1,000 ÷ (1 + 5.6%)) ÷ ($1,000) × 100

= $946.97 ÷ $1,000 × 100

= 94.70%

Hence, the price expressed as a percentage of the face value is 94.70%

Here we assume the face value be $1,000

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In what part of the circular flow model do households provide services to and receive payments from firms? Economic development
JulsSmile [24]

Answer:

Purchases Labor market

Explanation:

A simple circular flow of income model is and economic model that shows the movement of goods and services between the firm and the house hold and in the opposite direction is the flow of money between the firm and the household.

The Household provides factor input to the firm and in return receives rewards for the input in form of money from the firm, the firm on the other hand supply the household with goods and services and receives payment from the household, these transaction flow is thought of as a movement in circular direction, hence the term circular flow of income.

6 0
4 years ago
Fabtabtix, a designer clothing brand, has been selling clothes in the country of Grolania for over 30 years. With more number of
user100 [1]

Answer:

The correct answer is (b)

Explanation:

Socioeconomic cultural is one of the important factors that can help a business to grow and expand. Changes in socioeconomic environment can positively and negatively affects the sales. In this case of Fabtabix, the socioeconomic change has positively affected their business that is why it is growing over the past few years. Fashion conscious is a sociocultural component.

6 0
3 years ago
Social media sites like StuffDOT are often classified based on two factors; self-disclosure and ________, which is the degree of
Rasek [7]

Answer:

E) media richness

Explanation:

Based on the information provided within the question it can be said that these sites are often classified as self-disclosure and media richness. Media Richness refers to ability that the media has in regards to transmitting the needed information in a fast and efficient manner, in a acoustic, visual, and personal manner between people.

8 0
3 years ago
In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th
spin [16.1K]

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

4 0
3 years ago
Sandra Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual p
Andre45 [30]

Answer: a. $73,810.88

b. $10,185.18

Explanation:

a. The payments of $11,000 are constant so this can be considered an Annuity.

The cost of the Computer is it's present value which is,

Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods

= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)

= $73,810.88

b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.

The formula is the same but for the figures ,

Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods

73,810.88 = Annuity * 7.24689

Annuity = 73,810.88/7.24689

= $10,185.18

7 0
3 years ago
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