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3 years ago

$1,000 par value zero-coupon bonds (ignore liquidity premiums)

Business

1 answer:

zavuch27 [327]3 years ago

5 0

Answer:

the expected yield to maturity for bond C in 1 year :

1.0799³ = 1.06 x (1 + r)²

1.188 = (1 + r)²

√1.188 = √(1 + r)²

1.08999 = 1 + r

r = 0.08999 = 9%

the yield to maturity of zero-coupon bonds = (future value / present value)¹/ⁿ - 1

0.09 + 1 = ($1,000 / value in 1 year)¹/²

1.09 = ($1,000 / value in 1 year)¹/²

1.09² = $1,000 / value in 1 year

value in 1 year = $1,000 / 1.09² = $1,000 / 1.1881 = $841.68 ≈ $842

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All financial statements:_________

Anastasy [175]

Answer:

a) help to evaluate what happened in the past.

Explanation:

The financial statement interprets the financial performance, profitability, position of the company. It involves the income statement, balance sheet, cash flow statement, etc through which the business could be analyzed in a better way

Also it helps to analyze and evaluate what is happened in the past

Therefore the option a is correct

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3 years ago

Shoe Box Stores is currently an all-equity firm with 25,000 shares of stock outstanding. Management is considering changing the

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Answer:

d. Sell 210 shares and loan out the proceeds at 8 percent

Explanation:

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4 years ago

The Commerce Ministry of a country conducts regular surveys on goods and services sold within the country. Researchers at the Mi

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Answer:

The correct option is C.

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Price elasticity is usually negative, this means that it follows the law of demand; as price increases quantity demanded decreases.

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Therefore, in the scenario given above, the elasticity is higher than -1.2 because there are new brands that have just been introduced into the market.

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3 years ago

In January, 2020, Harmony Inc. has the following expenditures related to manufacturing a new generation of widgets. Match each e

Ivan

Answer:

Harmony Inc.

Expenditure Appropriate accounting treatment

a. Machinery $550,000 B. Capitalize to the Machine

b. Machinery $33,000 B. Capitalize to the Machine

Research and development $95,000 D. Expense.

c. Freight-in (Machinery) $4,250 B. Capitalize to the Machine

d. Installation, etc (Machinery) $16,500 B. Capitalize to the Machine

e. Prepaid Insurance $3,000 A. Capitalize to a different asset account.

Explanation:

1) Data and Analysis:

a. Machinery $550,000 Accounts payable $550,000

b. Machinery $33,000 Sales Tax Expense $33,000

Research and development $95,000 Cash $95,000

c. Freight-in (Machinery) $4,250 Accounts payable $4,250

d. Installation (Machinery) $16,500 Cash $16,500

e. Prepaid Insurance $3,000 Cash $3,000

b) The correct approach in capitalizing fixed assets and related costs is to follow this procedure: capitalize freight, sales tax, transportation, and installation, in addition to the fixed asset purchase cost.

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3 years ago

A firm run by a rational entrepreneur would want to hold inventories.<br> True<br> False

RUDIKE [14]

True
Because having inventories would mean the following:
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2. Holding Inventory gains quantity discount
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3 years ago