Defined Benefit Plan or a pension plan
westover ridge offers a 9 percent coupon bond with semiannual payments and a yield to maturity of 11.68 percent. the bonds mature in 16 years. what is the market price per bond if the face value is $1,000?
The Current Market Price of Bond is $807.86.
How to compute Current Market Price of Bond?The present market value of Bond can be ascertained by using following Formula:
V = 2n∑t=1 [(I/2) / {(1+kd /2)t }] + [F / (1+kd /2)2n]
= I/2 (PVIFA kd/2, 2n) + F (PVIF kd/2, 2n)
Where,
V = Value of the bond = to be ascertained.
I/2 = Semi-annual interest payment - 9% / 2 * $1000 - $45
Kd /2 = Discount rate applicable to a half-year period (YTM) – 11.68%/2 - 5.84%
F = Par value of the bond repayable at maturity - $1000
2n = Maturity period expressed in terms of half-yearly periods. 16*2 – 32 times
Current Market Price (CMP) of Bond and the yield to maturity has inverse relation i.e. if the YTM is more than coupon rate then the price of bond is less than its face value. This can be easily understand by graph attached. It help investor to take wise investment decision in bond market.
Therefore, if YTM is 11.68% and Coupon rate is 9.00 % semi-annually than the CMP would be $807.86 i.e. less than its FV 1000$.
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Free trade areas that have a common external trade policy, but don't allow for the free movement of people and capital are called
Answer:
common markets
Explanation:
True or false: Adams, Inc. has found that their managers are reluctant to replace old equipment with new, updated equipment. To stop this practice, Adams should compute ROI using assets' net book values.
Answer: False
Explanation:
According to the given scenario, the given statement is false as net book value discourages equipment replacement.
What is meant by net book value?The historical cost of an asset, less any sums deducted for depreciation, amortization, or depletion, is its net book value. The requirement that assets be reported at their market worth is a byproduct of fair value reporting. Several of the financial reporting rules mandated by US GAAP are emphasized by the fair value concept. "An asset's selling price agreed upon by a willing buyer and seller, presuming both parties are knowledgeable and join the transaction freely," is what fair value reporting refers to.
When revealing the worth of property, plant, and equipment, NBV is frequently utilized (PPE). This indicates that it is diminished as assets are amortized or depreciated. It is based on the notion that assets depreciate slightly over time as a result of use.
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Under the allowance method, companies estimate _____ uncollectible amounts and report those estimates in the _____ year.Multiple choice question.future; currentcurrent; futurefuture; futurecurrent; current
Answer: current and future
Under the allowance method, companies must estimate future, uncollectible amounts and report those estimates in the current year.
The missing words are Future and Current.
What is the Allowance Method?Under the Allowance Method, companies set aside a reserve that is estimated, for bad debts that are anticipated in the future.
This method is typical of the accrual basis of accounting and is the most accepted method for recording uncollected accounts for financial accounting purposes.
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the legal contract between the bondholders and the issuer is called the bond ______.
The legal contract between the bondholders and the issuer is called the bond indenture.
A bond indenture is important as it helps to protect the interest if the stakeholders and also lowers the chance of default.
It should be noted that the indenture list provides the details of a bond. It helps in ensuring transparency. Therefore, the legal contract between the bondholders and the issuer is called the bond indenture.
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A company’s value is also known as their what?
Answer:
Enterprise Value.
Explanation:
Also known as the AV, the enterprise value is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. The market capitalization of a company is simply its share price multiplied by the number of shares a company has outstanding.
Carina's job is to find new customers for her company's telecommunication services. She encourages existing customers to add more services and finds customers who are completely new to the company. Carina would best be classified as a(n)
For Carina, whose job is to find new customers for her company's telecommunication services and who also encourages existing customers to add more services and find customers who are completely new to the company, we can classify her as an Order Getter.
An order getter is a salesperson who actively engages customers and persuades them to purchase the goods that she is offering. This can be seen in the case of Carina.
She does not just take orders, rather, she encourages her customers to make purchases and refer others.
Therefore, Carina can be said to be an Order Getter.
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what is Communication,
Where do u record sundry expenses in a purchase ledger
Answer:
Sundry expenses are shown on the expenses side (left) of a profit and loss account (Income statement).
Explanation:
Answer:
Sundry expenses are shown on the expenses side (left) of a profit and loss account.
A diversification strategy should enable a company or its individual business units to create value in the value chain to:
A diversification strategy should enable a company or its individual business units to create value in the value chain to: establish differentiation and increase pricing options.
Alex just got a new car. Because Alex obtained full-coverage car insurance, Alex will have an incentive to ______ because of ______.
Since Alex obtained full-coverage car insurance, he will have to drive more cautiously than if he didn't have insurance because of moral hazard.
Moral hazard simply means a risk that an individual has not entered into a contract in good faith or the person provided inadequate information about his assets.
In this case, since Alex just got a new car and obtained full-coverage car insurance, Alex will have an incentive, he'll have to drive more cautiously than if he didn't have insurance due to moral hazard.
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in the u.s. economy, the money supply is controlled by the
Answer:
the fed
Explanation:
I just serched it up
Answer:
The money supply is controlled by the U.S government
If you want to go more in-depth it’s the federal reserve
Explanation:
Hope my answer helps
As described by capgemini, what aspect of smart products used an industry 4.0 environment would focus on using sensor technology to give access to condition information regarding products and their environment?
A product can be described using different aspects of it. The Aware aspect of smart products is often used an industry 4.0 environment to focus on using sensor technology.
Smart Products in Capgemini are known to be cyber-physicalsystems that gives new features and functions using connectivity.
Smart Services often makes up new paths for entirely new business
models and markets via innovative service offerings and delivery models.
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what are herbal plants
Answer:
Medicinal plants, also called medicinal herbs, have been discovered and used in traditional medicine practices since prehistoric times. Plants synthesise hundreds of chemical compounds for functions including defence against insects, fungi, diseases, and herbivorous mammals.
A developer buys a large tract of land and plans to develop several single family homes. To proceed, ______________ is needed.
if you are borrowing loans, where can you find out how much you own in federal student loans?
If you are borrowing loans you can find out how much you own in federal student loans in the The Federal Student Aid website.
This website is under the department of education in the state, The website would show you details such as:
What you are owingThe loan amount that you applies for originallyYour loan balance And your payment status.You can use the National student loan database system NSLDS to check this out.
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three brothers operating a business where the action of one brother is binding on the other two brothers
what type of business organization is this?
Considering the situation above, the type of business organization is "General Partnership."
This is because General Partnership, like other types of partnership in the business organization, usually involves a minimum of two people and a maximum of fifty people.
In the general partnership arrangement, all partners have independent authority to bind the business to agreements and loans and are equally liable to debts and legal obligations.
Given that the action of one brother is binding on the other two brothers, this is a form of General Partnership.
Other types of the partnership include the following:
Limited partnershipLimited liability partnershipLimited liability limited partnership.Hence, in this case, it is concluded that the correct answer is General Partnership.
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Downward influence is best achieved through A. citing the firm's goals. B. forming alliances. C. an inspiring vision. D. forming support networks.
Answer:
B. forming alliances
Explanation:
The effect on the accounting equation of declaring a dividend that will be paid at a later date includes a(n):
Answer:
- decrease in stockholders’ equity
- increase in liabilities
Explanation:
The effect on the accounting equation of declaring a dividend that will be paid at a later date includes decrease in stockholders’ equity and increase in liabilities.
What is stockholders’ equity?Stockholders' equity describes the assets that are still held by a company after all liabilities have been paid. This amount can also be determined by adding share capital and retained earnings, less treasury stock. It is obtained by deducting total liabilities from total assets.
Share Capital plus Retained Earnings minus Treasury Shares equals Stockholders' Equity. This equation, also referred to as the investor's equation, requires you to first calculate the share capital and then determine the business's retained earnings.
The calculation of shareholders' equity takes into account four factors: outstanding shares, additional paid-in capital, retained earnings, and treasury stock. A firm has sufficient assets to cover its liabilities if shareholders' equity is positive; otherwise, it has more liabilities than assets.
Thus, decrease in stockholders’ equity and increase in liabilities.
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4. The journal entry to record costs related to extraordinary repairs would include a __________ to __________.
Answer:
First blank - Debit
Second blank - Accumulated Depreciation
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Price discrimination leads to a _____ price for consumers with a _____ demand. higher; perfectly elastic lower; less elastic higher; less elastic higher; more elastic
According to macroeconomic theory, Price discrimination leads to a higher price for consumers with less elastic demand.
This is because price discrimination is a pricing strategy whereby producer of similar products or identical goods is selling these goods at different prices.
These goods, however, would make the price of some goods higher for the consumers while at the same time having less elastic demand.
There will also be ones with lower prices that would have more elastic demand.
Hence in this, case, it is concluded that the correct answer is option C. " higher; less elastic."
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which statement best illustrates the history of the fractional banking system?
Answer:
A goldsmith accepts deposits of gold and issues paper receipts in excess of the amount of gold held; reserves are a fraction of the money supply.
Explanation:
Look for factors that will help you determine what type of economy exists in Country A. Based on the clues in this passage, what type of economy does Country A have? developed developing transitioning command.
Answer:
B. developing
Explanation:
just did it
Answer:
b
Explanation:
bc
Retailing means a store sells directly to whom?
True or false: Some states allow corporations to issue no-par value common stock. True false question. True False
Based on capital market analysis, it is true that some states allow corporations to issue no-par value common stock.
In the United States, some of the states that allow corporations to issue no-par value common stock include the following:
Alabama, Colorado, Idaho, Kansas,Maryland, Michigan, Missouri, New Jersey, Ohio, Pennsylvania, Utah, etc.A no-par value stock is a stock allocated without a par value. Its value is visually determined by the amount investors are ready to pay on the open market.
Hence, in this case, it is concluded that the correct answer is "True."
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A production system that reduces a raw material to its component parts in order to extract one or more marketable products is a(n) _____ production system.
Answer:
synthetic production system
Explanation:
Managers should expect to encounter criticisms, disagreements, and other on-the-job conflicts regularly. true flase
Answer:. True
Explanation:I just finished this test and got it right.
Managers should expect to encounter criticism, disagreements and other on the job conflicts to avoid clash between employees.
What is on job conflict?On job conflict is a conflict in which the two employees disagree at some point in a work place. There can be healthy conflict which can bring new ideas to help the company grow and reach its objectives, however the manager should closely monitor on the job conflicts between employees and should try to resolve them immediately.
Therefore the statement is True
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Innovations like the mass production of cars can create economies of scale. However, over time this benefit becomes less meaningful because:
Answer:
other companies copy the processes
Explanation:
The three factors that evaluate the level of creativity in the decision-making process are fluency, flexibility, and originality. True False
Making choices among alternative courses of action is known as decision making. The three factors that evaluate the level of creativity in the decision-making process are fluency, flexibility, and originality is a true statement.
Creative decision-making is simply known as the ability to consider all views and solve a problem in a new way.
It often set up new or better ways, offer a new method or even help discover a new product or service for a business to offer.
Researchers often focus on three factors to evaluate the level of creativity in the decision-making process. They are:
Fluency: this refers to the number of ideas an individual is able to get. Flexibility: Based on if decision makers are able to get several unique solutions to a problem.Originality: something/Idea that is conceived by you.
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Which change should she make in her outline?
O change step 2 to “click the format tab”
O change step 3 to “open chart title dialog box “
O change step 4 to “type in the chart title”
O change step 5 to “add the chart title”
Answer:
A
Explanation:
Answer:
B
Explanation: