Answer: 10 years to call
Explanation:
Maturity period = 25 years
Coupon rate = 7%
6.25% basis is,
- Callable in 10 years at 103
- Callable in 15 years at 102
- Callable in 20 years at par
This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.
Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.
Answer:
35933
$46,200
Explanation:
Depletion = amount of pounds extracted x depletion factor
depletion factor = (cost of asset - salvage value) / estimated yield
(330,000 - 22,000) / 660,00 = 0.467
2021 = 0.467 x 99,000 = $46,200
Answer:
Inflation affects your standard of living because it can reduce your spending power. Retirees are often greatly affected by inflation because many retirees live on a fixed income.
Explanation
Consequently, their disposable income is reduced as day-to-day expenses consume an ever growing portion of their income.
Answer:
37 F
Explanation:
Direct materials Quantity variance 597 F
Less: Direct materials Price variance 560 U
Direct materials Flexible Budget variance 37 F
Answer:
C. 157
Explanation:
Safety stock = Z-score * Standard deviation of average demand * √lead time
Z-score for 74 % service level is 0.643
Standard Deviation of demand is 200
Lead Time = 1.5 weeks
Safety stock = 0.643 * 200 * √1.5
Safety stock = 0.643 * 200 * 1.224745
Safety stock = 157.502
