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elena-14-01-66 [18.8K]
3 years ago
13

Consider a futures contract for the delivery of a two-period bond with M=100 in one period from today. There are four deliverabl

e bonds: A, B, C, and D. The prices and conversions factors of these four bonds on the delivery date are P(A)=100, conversion factor(A)=1.05; P(B)=105, conversion factor(B)=1.04; P(C)=103, conversion factor(C)=1.04; P(D)=99, conversion factor(D)=0.98. Which one of the above four bonds will be delivered? A. Bond B B. Bond D C. Bond C D. Bond A
Business
1 answer:
11111nata11111 [884]3 years ago
7 0

Answer:

The correct answer is ()D.Bond A.

Explanation:

From the question provided, the bond that will be delivered is Bond A.

The reason is that, The bond A has the highest conversion factor when measured  to other bonds and must be delivered.

The Bond A prices and conversions factors with its delivery date will be get there on time before other bonds, because of its high rate.

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Three groups that participate in the process of establishing gaap are users, preparers, and auditors. these groups are represent
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1.) Securities and Exchange Commission-----------USERS


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2.) Financial Executives International ------------PREPARERS


Financial Executives International (FEI) is a part service– arranged association situated in Morristown, New Jersey, for senior-level budgetary administrators in organizations in fluctuating sizes, both open and private, and in all ventures. FEI works a different not-for-profit establishment: Financial Executive Research Foundation (FERF), which goes about as a fair-minded budgetary asset for individuals and Foundation supporters.  

FEI was established as the Controllers Institute of America in 1931. The association renamed itself in 1962 to Financial Executives Institute to mirror the development of obligations among budgetary administrators into arrangement making zones. As the worldwide economy kept on developing in the 1960s, the gathering helped shape the International Association of Financial Executives Institutes (IAFEI).  

3.) American Institute of Certified Public Accountants ---------AUDITORS


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5.) Association of Investment Management and Research ----------USERS


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5 0
3 years ago
The existence of a ________ means that the interest rate on a two-year bond will exceed the average interest rate on two success
krok68 [10]
The answer is risk-premium
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3 years ago
Organizations typically rely on __________ schedules, such as hourly wages and annual reviews and raises.
frutty [35]

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3 0
3 years ago
Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no
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Answer:

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Explanation:

the payback will be the point in time at which the project cash flow equal the invesmtent.

This method do not consider the time value of money so we don't have to adjust any period cashflow or outflow.

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Investment/cash flow = 5,000 / 2,000 = 2.5 years

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andreev551 [17]

Harley-Davidson is building brand personality by reinforcing the perception that his brand is masculine, rugged, and individualistic.

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It is an effective brand increases which empowers one's company to build connections with its target audience.

Hence, Harley-Davidson is building brand personality by reinforcing the perception that the brand is masculine, rugged, and individualistic.

Learn more about Brand personality here: brainly.com/question/14558525

#SPJ1  

3 0
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