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3 years ago

1) You are considering purchasing a 20 year bond from Saudi Arabia. You have a required return

Business

1 answer:

inessss [21]3 years ago

6 0

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

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Debt that is callable by the creditor in the upcoming year, but is not expected to be called, is reported as

balu736 [363]

Answer: current liability

Explanation: Callable debts are simply called bonds (an investment instrument whereby an individual or investor loans a certain amount to an organization in other to finance a project or business that yields profit) which the creditor or issuer call of or terminate a bond before it reaches maturity usually due to decline or decrease in the interest rate on investment, which could have fallen below or seem illogical given the Interst rate in the bond. As such, bonds which are Callable are reported as current liabilities even when they are not expected to be called as current liabilities should include all of an organization's debt or liabilities which should be cleared within 12 months(current fiscal year).

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4 years ago

Thornton Company started year 1 with $300,000 in its cash and common stock accounts. During year 1, Thornton paid $225,000 cash

bixtya [17]

Answer and Explanation:

The computation is shown below;

a. Total assets are

= Stock + Cash

= [$294,000 ÷ 1500 × 300] + [$300,000 - $225,000 - $69,000]

= $64,800

And, Total expenses is

= Materials + Labor

= $225,000 + $69,000

= $294,000

The Name of the expense is Purchases, Salaries

b. Total assets are

= Cash

= $300,000 - $225,000 - $69,000

= $64,800

And, the Total expenses = $294,000

The Name of the expense is Supplies, Salaries

4 0

3 years ago

Whose responsibility is it to identify credit report errors?

lesya692 [45]

The credit bureaus and the company reporting your pay history, the information furnisher are two bodies responsible for the information in your credit report. The account information from the credit bureau can only be as accurate as the information it is provided by the information furnisher.

6 0

4 years ago

Gains from trade

Sergeeva-Olga [200]

Answer:

Contente's opportunity cost of producing 1 bushel of rye is 0.5 of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is 0.25 of jeans. Therefore, DOLORIUM has a comparative advantage in the production of rye, and CONTENTE has a comparative advantage in the production of jeans.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce 64 million bushels per month, and the country that produces jeans will produce 24 million pairs per month.

Suppose the country that produces rye trades 54 million bushels of rye to the other country in exchange for 18 million pairs of jeans.

Dolorium:

Export 54 million bushels of rye

Consume 10 million bushels of rye

Import 18 million pairs of jeans

Contente:

Export 18 million pairs of jeans

Consume 6 million pairs of jeans

Import 54 million bushels of rye

Before specialization, the total production of rye = 36 + 16 = 52 million bushels, and the total production of jeans = 6 + 12 = 18 million pairs.

Because of specialization, the total production of rye has increased by 12 million bushels per month, and the total production of jeans has increased by 6 million pairs per month.

Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table.

Contente:

Before specialization and trade, produced and consumed 6 million pairs of jeans and 36 million bushels of rye.

After specialization and trade, consumed 54 million bushels of rye and 6 million pairs of jeans.

Gain from trade is 18 million bushels of rye.

Dolorium:

Before specialization and trade, produced and consumed 12 million pairs of jeans and 16 million bushels of rye.

After specialization and trade, consumed 10 million bushels of rye and 18 million pairs of jeans.

Gain from trade is -2 million bushels of rye and 6 million pairs of jeans.

Explanation:

There is a mistake in the question, since Contente's production of jeans must be 6 per hour and its production of rye should be 12 bushels per hour. That is the only way that it can produce 6 million pairs of jeans and 36 million bushels of rye. Something similar happens with Dolorium, it must be able to produce 16 bushels of rye per hour and 4 pairs of jeans per hour in order to produce 12 million pairs of jeans and 16 million bushels of rye.

Country Rye Jeans

Contente 12 6

Dolorium 16 4

Contente's opportunity cost of producing rye = 6 / 12 = 0.5 pairs of jeans.

Dolorium's opportunity cost of producing rye = 4 / 16 = 0.25 pairs of jeans.

Dolorium's production of rye = 16 bushels x 4,000,000 labor hours = 64,000,000 bushels of rye.

Contente's production of jeans = 6 pairs x 4,000,000 labor hours = 24,000,000 pairs of jeans

8 0

4 years ago

Stephen discovers that the tennis shoes he just purchased are being offered

Anton [14]

The discovery of Stephen realizing that the same shoes he just purchased are being offered for a lower price by the same company is known as predatory pricing.

<h3>What is Predatory Pricing?</h3>

Predatory pricing is a marketing strategy that employs the approach of discounting on a wider scale, in which a dominating corporation in an industry may purposefully lower the prices of a product to potential loss levels within the short term.

Predatory pricing typically causes customers harm or loss and is viewed as anti-competitive in many regions, rendering the practice unlawful under several legal provisions.

Learn more about predatory pricing here:

brainly.com/question/14451551

8 0

2 years ago