Answer:
b. other than 1
Explanation:
Nonlinear models are called that way because they are not linear in parameters. In order for this nonlinear characteristic to exist, the exponents of the parameters must be any number other than 1.
While linear models can have a nonlinear relationship between the predictors and independent variables. But when you analyze the mean (predictor), it must be linear with the parameters.
Answer:
When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate
If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.
YTM if market price is 887 = 10.7366190%
YTM if market price is 1,134.2= 7.1764596%
Explanation:
For the YTM we can calculate an estimated using the following formula:
Where:
C= coupon payment 1,000 x 9% = 90
F= face value of the bonds = 1000
P= market price = 887
n= years to maturity = 10
YTM = 10.7366190%
C= 90
F= 1000
P= 1134.2
n= 10
YTM = 7.1764596%
A more precise answer can be achieve using excle or a financial calculator.
The systematic response coefficient from inflation, would result in a change in any security return of <u>3.2 βI</u>.
<u>Explanation</u>:
<em><u>Given</u></em>:
Expected rate of inflation = 3%
Actual rate of inflation = 6.2%
The change in security return can be calculated by obtaining the differences between actual and expected levels of inflation.
Change in security return= Actual rate of inflation- Expected rate of inflation
= 6.2%-3%
= 3.2%
<u>Change in security return= 3.2 βI
</u>
<u></u>
Answer:
d. $2,950,000
Explanation:
The computation of amount of research and development costs charged is shown below:-
Amount of research and development costs = Direct materials + Personnel cost + Consulting fee paid to outsiders + Indirect costs + Depreciation
= $995,000 + $795,000 + $345,000 + $270,000 + $545,000
= $2,950,000
Therefore for computing the amount of research and development costs we simply applied the above formula.
Answer:
The requirement of question is prepare journal entries for each of above transaction; It is assumed that par value of each share is $1
Explanation:
Feb 1.
Common Stocks 230*1 Dr.$230
Paid in capital in excess of par 230*(22-1) Dr.$4,830
Cash 230*22 Cr.$5,060
b. Jul 15
Cash 130*23 Dr.$ 2,990
Common Stocks 130*1 Cr.$130
Paid in capital in excess of par 130*(23-1) Cr.$2,860
c.Oct 1
Cash 100*21 Dr.$2,100
Common Stocks 100*1 Cr.$100
Paid in Capital in excess of par 100*(21-1) Cr.$2,000
