Answer:
B. If the yield to maturity for both bonds remains at 8%, Bond A's price one year from now will be higher than it is today, but Bond B's price one year from now will be lower than it is today
Explanation:
From the information given, that do not contain the price of the bond it is predictable that the Bond A will have higher value than Bond B if the YTM remains at 8% because the Coupon rate for bond A is higher than YTM. instead, the coupon rate for bond B is lower than YTM.
It also can be inferred that Bond B is trading as discount whereas Bond A is trading as Premium.
Answer:
b. It is the budgeted amount used to calculate the actual costs.
Explanation:
Static budget is the budget which remains the same even if there is some changes made but the flexible budget do not remain the same.
Moreover, the static budget is the main budget that used to prepare the standard cost by considering the budgeted activity level
Therefore it is the budget in which the budgeted amount should be considered in order to determine the actual cost that helps to make the flexible budget
Answer:
(B) False
Explanation:
In the circular flow, the raw material that is basic resource provider gets to increase his income which means that his profit margin is high thus sales value is high and therefore, the result will be higher cost for the producers using such resources.
Since the cost to producers is revenue to resource owner's, this means high revenue to owner's and high cost to producers.
Thus, above stated statement is
(B) False
Answer:
You will need to have $ 55,006.94
Explanation:
We need first to consider the following details according to the problem
We have a Annuity amount of $ 2900, a Rate(r)= 0.51%, and a Time(n)= 5 years (or 20 quarters )
.
To reach to the money that we would need to have in the bank today to meet the expense over the next four years we use the following formula:
PVA= annuity amount × [1 - (1 / (1 + r)n)] / r
PVA= $ 2900 x[ 1-{ 1/(1+0.0051)20)]/0.0051
PVA= $ 55,006.94
