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3 years ago

What is term structure of interest rate?

Business

2 answers:

leonid [27]3 years ago

8 0

Explanation:

term structure of interest rate is the relationship between interest rate or bond yields and different terms or maturities. the term structure of interest rates reflects the expectation of Market participants about future changes in the interest rate and their assistants of monetary policy conditions

zvonat [6]3 years ago

3 0

Essentially, term structure of interest rates is the relationship between interest rates or bond yields and different terms or maturities. ... The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monetary policy conditions.

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Process Costing using First-in-First Out (FIFO) Crone Corporation uses the FIFO method in its processing costing system. The fol

shutvik [7]

Answer:

Cost of ending inventory= $8,520.6

Total cost of units transferred out=$99,863

Explanation:

Cost of ending inventory

Cost of items of inventory = cost per equivalent unit × No of units

Cost of items of inventory = ($9.50×330) + ($20.40 × 264)= $8,520.6

Total cost of units transferred out

The FIFO method of valuation of working in progress separates the units transferred out into opening inventory and fully worked.

The fully worked represents the units of inventory started and completed in the sames period.

The cost of units transferred out is the sum of h opening inventory and he fully worked. This done below:

Opening inventory = ($9.50 × 360) + ($20.40×140)= 6276

Transferred of fully worked = $(9.50 +$20.40) × 3,130= 93,587

Total cost of units transferred out = (6276 +93587)= $99,863

4 0

3 years ago

Critically discuss the economic importance of the secondary sector to the south African economy.

LuckyWell [14K]

Wait ⚠️

This question is from quizlet

4 0

3 years ago

A woman deposits $11 comma 000 at the end of each year for 15 years in an account paying 5% interest compounded annually. (a)

nignag [31]

Answer and Explanation:

The computation is shown below:

a. The final amount she will have on deposit is

Future value = Present value × {(1 + interest rate)^number of years - 1} ÷ interest rate

= $11,000 × {(1 + 0.05)^15 - 1} ÷ 0.05

= $11,000 × 21.57856359

= $237,364.20

b. The amount at 4% is

Future value = Present value × {(1 + interest rate)^number of years - 1} ÷ interest rate

= $11,000 × {(1 + 0.04)^15 - 1} ÷ 0.04

= $11,000 × 20.02358764

= $220,259.46

c. The losing amount in case when she used her brother-in-law's bank is

= $237,364.20 - $220,259.46

= $17,104.74

We simply applied the above formula

5 0

4 years ago

The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 90,000 units of Product C each

expeople1 [14]

Answer:

Indifferent selling price =$67 per units

Explanation:

The selling at which Mel rose would be economically be indifferent between accepting and rejecting the special order from Moore is that that equates the relevant cost of making to the revenue from t

Relevant variable cost making

= 22.80 + 18.60 + 14.20 + (75%×12.80) = $65.2

Variable cost of special order (= $65.2 × 3,500)= 228,200

Cost of machine 6,300

Total relevant cost of special order 234,500

The price at which Melrose would be indifferent

= total relevant cost/ number of units

$234,500/3500 units

=$67 per units

4 0

3 years ago

Big Canyon Enterprises has bonds on the market making annual payments, with 17 years to maturity, a par value of $1,000, and a p

elixir [45]

Answer:

7.8%

Explanation:

For computing the coupon rate first we have to determine the PMT by using the PMT formula which is shown in the attachment below:

Given that,

Present value = $969

Future value or Face value = $1,000

RATE =8.1%

NPER = 17 years

The formula is shown below:

= PMT(RATE;NPER;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the PMT is $77.58

Now the coupon rate is

= $77.58 ÷ $1,000

= 7.8%

5 0

3 years ago

What is term structure of interest rate?​

What is term structure of interest rate?