When a bond is trading at a premium, then the coupon rate is higher than the current yield and the yield to maturity.
<h3>How does a bond trade at premium?</h3>
For a bond to trade at premium, the coupon rate would have to be higher than the yield to maturity and the current yield.
Such a bond would trade at premium because the present value of the bond would be more than the par value thanks to the coupon being larger than the discount rate which is the yield to maturity.
Find out more on the yield to maturity at brainly.com/question/14012047.
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Answer: The equilibrium will shift from right to left, and that would be a recessionary gap
Explanation:
Aggregate supply is the quantity of goods and services producers make available for sale and is equal to the money income received by the owner's of the factors of production. Aggregate demand is the total demand for final goods and services in the economy at a given period of time and at a given price level. It is the sum of money consumers planned to spent on the purchase of output in an economy at a given period of time.The equilibrium level of income is the income level at which aggregate supply equals aggregate demand. The Aggregate income on the other hand, is the total amount of income received by all factors of production in an economy at a given period.
If there is a decrease in aggregate income and spending in an economy, the equilibrium level of income shift from right to left and that would be a recessionary gap. The recessionary gap occurs when when the aggregate demand consisting of consumption, investment and government expenditure is not enough to create condition of full employment. It is the difference of the amount by which aggregate expenditure falls short of the level needed to generate equilibrium national income at full employment without inflation.
Answer:
C. Business opportunity
Explanation:
The opportunity is always derived from a need, problem or desire in the market.
Answer:
$192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.
Explanation:
Costs relating to idle time are part of the fringe benefits that are related to direct labor and they are parts of the benefits given to workers.
Idle time is the number of time in which workers are idle during the normal working hours or day. Some of the causes of idle time include defective materials, power outage, faulty machine, shortage of raw materials, and among others.
In cost accounting, idle time costs are not included in the direct labor costs but are considered as indirect labor costs. Idle time costs are therefore included in manufacturing overhead cost.
From the question,
Direct labor cost = (Number of hours worked by Robert – Idle hours) × hourly rate
Direct labor cost = (50 - 2) × $4
= 48 × $4
= $192
Idle time cost = Idle time × hourly rate
= 2 × $4
= $8
Total cost = Direct labor cost + Idle time cost
= $192 + $8
= $200
Since idle time cost is considered as indirect labor cost and to be included in manufacturing overhead cost, $192 will be allocated to the direct labor cost while $8 will be allocated to manufacturing overhead.
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