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BartSMP [9]
3 years ago
11

You want to invest some money today to ensure you have exactly $50 thousand in 6 years to use as the down payment on a house. Yo

u are considering an investment in only one of the following bonds: (1) 3% 2-year T-Note; (2) 0% 6-year T-Bond STRIPS; (3) 3% 6-year T-Bond; (4) 5% 6-year T-Bond; (5) 8% 10-year T-Bond. The 6-year T-Bond STRIPS is the investment best suited to meet your objective. True False
Business
1 answer:
Naddik [55]3 years ago
5 0

Answer:

True

Explanation:

STRIPS are zero coupon bonds, and the advantage of them is that they allow an investor to know exactly how much money they will receive at a future date.

The investor purchases the STRIPS at a discount value, which we are not told here. E.g. assuming that the discount rate is 5% (similar to (4), the price of the STRIPS = $50,000 / (1 + 5%)⁶ = $37,311.

You might be interested in
Exercise 15-2 On January 1, 2017, Klosterman Company issued $420,000, 12%, 10-year bonds at face value. Interest is payable annu
Maslowich

Answer:

The journal entry to record the bond issuance is shown below:

Explanation:

The journal entry to record the bond issuance is as:

Cash A/c.............................................Dr  $420,000

        Bonds Payable A/c......................Cr  $420,000

Being the bonds issued

As the bonds are issued by the company so cash is coming into the business, which is an asset and any increase in asset is debited. Therefore, the cash account is debited. And cash is received against the bonds payable, so the account of bonds payable is credited.

6 0
3 years ago
Overton Enterprises is converting to an activity-based costing system. It wishes to depict the various activities in its manufac
guapka [62]

Answer:

The correct answer is the option B: Activity relationship charts (ARCs).

Explanation:

To begin with, <em>''activity-based costing system''</em> is the name that receives a costing method that focuses in the identification of activities and proper assignment of the them to the products and services according to the actual consumption by each. Moreover, the main purpose of this model is to assign more indirect costs into direct costs.

To continue, the<em> ''activity relationship chart'' </em>is a tabular that displays the closeness rating among all pairs of activities and therefore that this tool is the most suitable for the company to accomplish the task of converting into an activity-based costing system.

7 0
3 years ago
This text appears and a Canamak's page of the local newspaper.One of the sentences is incorrect. Which corrected sentence would
Mama L [17]
Answer: option C.

It corrects the error in the original because when business seek to reduce cost  cut positions not the contrary. The employment goes down which is the same that unemployment goes up.
8 0
3 years ago
Those who implement the policies and plans of top management above them and supervise and coordinate the activities of the first
liq [111]

Answer:

Middle Management

Explanation:

According to my research on different business roles and responsibilities, I can say that based on the information provided within the question the role being described is called Middle Management. These are the intermediate management level of an organization that is responsible for ‘team leading’ line managers and/or ‘specialist’ line managers, as well as being responsible for lower level performance and productivity.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
3. Why accrue an expense?
statuscvo [17]
Because accrued expenses represent a company's obligation to make future cash payments, they are shown on a company's balance sheet as current liabilities.
8 0
2 years ago
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