QUESTION 7 of 10: What aspect of your advertising is it vital to measure?

risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon

Ilya [14]

Answer:

Price Risk, Reinvestment Risk, Investment Horizon and Longer maturity Bond.

Explanation:

Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.
Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.
Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment.
Longer maturity bonds have high price risk but low reinvestment risk, while higher coupon bonds have a higher level of reinvestment risk and a lower level of price risk.

8 0

4 years ago

Last year, Jose had to invest. He invested some of it in an account that paid simple interest per year, and he invested the rest

VladimirAG [237]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete. We do not have the rate interest for both accounts. We also do not know how much is invested in each account. The question also has a typo, the question says "he invested some of it in an account that paid simple interest per year and invested the rest in an account that paid simple interest per year". We will make some assumption in order to provide a proper solution to this question

Assumptions:

Firstly we will assume he invested in a simple interest account and a compound interest account. assume

The total investment is $1000. $5000 is invested in each account.

Therefore the Present Value (PV) is $5000 for both accounts

Interest rate (R) is 10% per year for simple interest and 10% per per year Compounded monthly for compound interest account

Period (n) = 1 year

Simple Interest Account

Future Value (Simple Interest) = P(1 + Rn)

Future Value (Simple Interest) = $5000(1 + 0.10 x 1) = $5500

Interest from Simple interest account = 5500 - 5000 = $500

Compound interest Account

Future Value (Compound interest) = P(1 + R)^n

Future Value (Compound interest) = $5000(1 + 0.10/12)^12 = 5523.565337

Interest form Compound interest account = 5523.57 - 5000 = $523

compound interest account earned more interest than Simple interest Account

5 0

3 years ago

Read 2 more answers

Because barcelona is constantly raising the bar, the company experiences high turnover and is constantly hiring. why might scott

VMariaS [17]

A company is said to have a high turn over rate when it sacks old employees and hire new employees on a regular basis. Scott may want to change his approach to human resource management because, high turn overate is bad for the health of a company for the following reasons:
1. Reduction in overall efficiency of the company.
2. High cost of recruitment of new staff.
3. High cost of settlement for sacked employees.
4. It leads to lowered employees' productivity.
5. It negatively impacts the brand of the company.<span />

6 0

3 years ago

Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost

ANTONII [103]

In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)

Explanation:

To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category

Profit margin = (market value - cost price) = Profit ÷ cost price × 100

Class 1:

Model A

46 $116 $139

Profit margin = (139 - 116) = 23 ÷ 116 × 100 = 19.32%

Model B

49 243 239

Profit margin = (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)

Model C

43 233 252

Profit margin = (252 - 233) = 19 ÷ 233 × 100 = 8.15%

Class 2:

Model D

37 79 98

Profit margin = (98 - 79) = 19 ÷ 79 × 100 = 24%

Model E

6 151 130

Profit margin = (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)

Result

In class 1

Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%

In class 2

Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%

Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost

3 0

3 years ago

Following are several figures reported for Allister and Barone as of December 31, 2018:

Natali5045456 [20]

Answer and Explanation:

The computation of inventory, sales, cost of goods sold, Operating expenses and Net income attributable to non-controlling interest is shown below:-

But before that we need to determine the following calculations

Unrealized profit on inventory = ($172,000 - $126,000) × 10%

= $4,600

Customer list amortization = $70,000 ÷ 4

= $17,500

Inventory = $530,000 + $330,000 - $4,600

= $855,400

Sales = $1,060,000 + $860,000 - $172,000

= $1,748,000

Cost of goods sold = $530,000 + $430,000 + $4,600 - $172,000

= $792,600

Operating expenses = $245,000 + $315,000 + $17,500

= $577,500

Net income attributable to non-controlling interest = 10% × ($860,000 - $430,000 - $315,000 - $4,600 - $17,500)

= 10% × $92,900

= $9,290

8 0

3 years ago