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Yuri [45]
3 years ago
15

Suppose the spot rates for 1 and 2 years are s1=6.3% and s2=6.9% with annual compounding. recall that in this course interest ra

tes are always quoted on an annual basis unless otherwise specified. what is the forward rate, f1,2 assuming annual compounding?
Business
1 answer:
user100 [1]3 years ago
4 0

Since the problem assumes annual compounding, then the relationship of forward rate and spot rates is given in the equation:

f1,2 = ((s2^2 / s1) - 1)

Therefore,

f1,2 = ((1.069^2 / 1.063) - 1)

f1,2 = 0.075 = 7.5%

Forward rate is 7.5%.

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zhannawk [14.2K]

Answer:

The correct answer is option (D).

Explanation:

According to the scenario, the given data are as follows:

Cash (assets) = $68

Accounts receivables ( assets ) = $142

accounts payable ( liabilities)  = $235

Inventory = $318

So, we can calculate quick ratio by using following formula:

Quick ratio = Assets / Liabilities

= $68 + $ 142 / $235

= $210 / $235

= 0.89

Hence, the value of quick ratio is 0.89.

7 0
4 years ago
Dufner Co. issued 17-year bonds one year ago at a coupon rate of 6.3 percent. The bonds make semiannual payments. if the YMT on
MA_775_DIABLO [31]

Answer:

-_-

Explanation:

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4 0
3 years ago
Bob returns goods bought on credit from Tariq, which ledger a/c entries record this in Tariq's book?
Elza [17]

Answer:

<u>D. Purchase returns Bob</u>

Explanation:

  • Purchase refers to payment by credit
  • So, it is either B or D
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7 0
2 years ago
Read 2 more answers
Jackson Company had a net increase in cash from operating activities of $10,000 and a net decrease in cash from financing activi
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Answer:

A. an outflow or decrease of $1,000.

Explanation:

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$11,000 = $4,000 + $10,000 + cash flow from investing activities - $2,000

$11,000 = $12,000 + cash flow from investing activities

Cash flow from investing activities = $11,000 - $12,000

Cash flow from investing activities = -$1,000

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