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krok68 [10]
3 years ago
8

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compou

nded semiannually.
Business
1 answer:
Ugo [173]3 years ago
8 0

Answer:

a. EAR for First National Bank  = 12.35%

b. EAR for First United Bank = 12.25%

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

First National Bank charges 11.7 percent compounded monthly on its business loans. First United Bank charges 11.9 percent compounded semiannually.

Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Explanation of the answers is now given as follows:

The effective annual rate (EAR) can be calculated using the following formula:

EAR = ((1 + (i / n))^n) - 1 .............................(1)

Where;

i = Annual interest rate of the bank

n = Number of compounding periods in a year

Therefore, we have:

a. Calculation of the EAR for First National Bank

i = Annual interest rate of First National Bank  = 11.7%, or 0.117

n = Number of compounding periods in a year = 12

Substituting the values into equation (1), we have:

EAR for First National Bank = ((1 + (0.117 / 12))^12) - 1

EAR for First National Bank = 1.12348257790079 - 1

EAR for First National Bank  = 0.12348257790079, or 12.348257790079%

Rounding to 2 decimal places as required, we have:

EAR for First National Bank  = 12.35%

b. Calculation of the EAR for First United Bank

i = Annual interest rate of First United Bank = 11.9%, or 0.119

n = Number of compounding periods in a year = 2

Substituting the values into equation (1), we have:

EAR for First United Bank = ((1 + (0.119 / 2))^2) - 1

EAR for First United Bank = 1.12254025 - 1

EAR for First United Bank = 0.12254025, or 12.254025%

Rounding to 2 decimal places as required, we have:

EAR for First United Bank = 12.25%

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Answer:

Match the type of bond to its definition.

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This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity.

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This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution.

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This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt,

d)A Convertible bond:

This type of security provides a stable payment for the holder as payment for the lending of a certain amount of money. However, it has a special right to be converted in stock if the holder wants it.

e)A Put bond:

This type of security compromises the issuer to buy a certain stock from the holder at a certain price with a certain duration.

Explanation:

The reasons to back this answer are:

a)The Catastrophe Bond:

This bond is security emitted by a company to raise funds in the form of debt because it suffered a natural disaster and needs liquidity. This is a very effective bond to issue debt in any unexpected event.

b)A Warrant Bond:

This type of bond is emitted by a company to favor the holder for the right to buy a stock at a price that will be decided by the company at the moment of the warrant bond expedition. This price is not linked to the market stock price at the moment of execution. This is a very good bond to reward management for good results.

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This security is a bond that compromises the company to pay the established amount if the company makes enough earnings to issue the fraction established of the debt, This is a very good bond to not compromise to use a payment of a debt, and keeping it outside a bad scenario for the company.

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3 years ago
Any purchased materials that will go into the finished product are first recorded in the.
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Any material purchased will be recorded in the Raw material inventory account. The option for the first blank is raw and second blank is material.

<h3>What is Inventory Account?</h3>

Inventory Account refers to the account which records all the transactions related to the stock. It records the purchased of the stocks, work in progress, closing stock, opening stock etc.

The complete question is attached below.

The raw material inventory account is where all materials that will be used to create the final product are first registered.

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Answer:

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