You buy a 7 percent, 25-year, $1,000 par value floating rate bond in 1999. By the year 2004, rates on bonds of similar risk are up to 9 percent. What is your one best guess as to the value of the bond

Answers

Answer 1
Answer:

The best guess to the value of a bond is $1000

The following information should be considered:

  • The floation rate bond is the bond where the coupon rate should be changed and it should be changed as per the market condition.
  • So here the price of the bond remains the same or we can say it should be constant.

Therefore we can conclude that The best guess to the value of a bond is $1000

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Answer 2
Answer:

Answer:

The best guess to the value of bond is $1000.

Explanation:

The best guess to the value of a bond is $1000 because the flotation rate bonds are those bonds where coupon rate varies according to the market situation. Therefore, we can say that the coupon rate in the case of flotation bonds is based upon the rate of LIBOR, etc.  Generally, the bond value remains the same and there will be no capital gain or loss to the investor.


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The company that manufactures molson beer, which is typically consumed by males, launched an alcoholic lemonade beverage to attract more females. this launch of a new product to attract a new market for molson's products is an illustration of a _____ strategy.
Cramer Corp. issued $20,000,000 of 5-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $19,227,757. Interest on the bonds is payable semiannually. Required: Journalize the entry to record the first semiannual interest payment, and the amortization of the bond discount, using the interest method? Round your answers to the nearest dollar amount. Refer to the Chart of Accounts for exact wording of account titles.
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In 2009, a computer manufacturer had a labor productivity of 3.33 units per labor hour. In 2010, the computer manufacturer had a labor productivity of 4.27 units per labor hour. The percent change in labor productivity is:
You have been asked to estimate the beta for a large South Korean company, with large holdings in steel and financial services. A regression of stock returns against the local market index yields a beta of 1.10, but the firm is 15% of the index. You have collected the average betas for global companies in each of the sectors, as well as the average debt equity ratios in each sector: Setor Average Regression Beta Average D/E ratioSteel 1.18 30% Financial Services 1.14 70% The average tax rate for these industries is 40%. In the most recent period, the company you are analyzing earned 70% of its operating income from steel and 30% from financial services. The firm also had a debt/equity ratio of 150%, and a tax rate of 30%. Estimate the levered beta for the company.

Of customers who register a complaint, ________. all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor none will do business with the company again customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied the speed of resolution has no impact on the likelihood of repeat business some will do business with the company again if their complaint is resolved

Answers

Answer:

Some will do business with the company again if their complaint is resolved.

Explanation:

In the current situations that surrounds marketing and different businesses, it is now inevitable for customers not to complain and at such can lead to loss of customer(s).

Complaints from a customer primarily highlights a problem, this ranges from problem with your product to employees or internal processes, and also by hearing these problems directly from your customers, you can investigate and improve to prevent further complaints in the future.

That is why it is said that some customers will likely do business with the company again if their complaint are been resolved.

Answer:

some will do business with the company again if their complaint is resolved

Explanation:

Complaints are made by customers who are seeking better services from a business as regards it's products and services.

When complaints are resolved customers usually do business again with the company.

Customers who do not complain are those who notice the problem with the products or services offered and move to a competitor.

For a customer to make a complaint it means he is still loyal to the company but wants improvement in some area of product and services offering.

Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.On the basis of the given information

a. Gamma should export both tea and pots to Sigma
b. Sigma should export tea to Gamma and Gamma should export pots to Sigma
c. Gamma should export tea to Sigma and Sigma should export pots to Gamma
d. Gamma should export tea to Sigma, but it will not be profitable for the two nations to exchange pots

Answers

Answer:

The correct answer is "C"

Explanation:

Production prospects Frontier utilizes the idea of chance expense of creation. It is the measure of other great relinquished or not created so as to deliver a specific decent.  

For Gamma, the opportunity cost of delivering one unit of tea is 120/120 = 1 unit of pot. For Sigma, this open door cost is 120/40 = 3 units of pot. It shows that the open door cost of delivering tea is lower in Gamma. Consequently Gamma ought to represent considerable authority in the creation of tea and should trade it. Sigma ought to represent considerable authority underway of pots and fare it.

g You are given the following information. Durable good consumption 462 Residential investment 526 Imports 987 Government expenditure 1259 Receipts of factor income from abroad 45 Personal income 7863 Nonresidential investment 66 Nondurable goods 893 Exports 1056 Services 7638 Depreciation 125 Change in inventories 26 Payments of factor income abroad 59 Personal taxes 2538 Find disposable personal income

Answers

Answer:

$5,325

Explanation:

Disposable personal income is the income that remain after paying all personal taxes and purchase of final expenditure on goods and services.

Disposable personal Income = Personal Income of the consumers - Personal Taxes paid by the consumers

Disposable personal Income = $7,863 - $2,538

Disposable personal Income = $5,325

So, the disposable personal Income for the individual is $5,325.

In the Month of March, Baldwin received orders of 113 units at a price of $15.00 for their product Bell. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 113 units in April. They received payment for 57 units in March, and 57 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order?

Answers

Answer:

Zero

Explanation:

Under the accrual method, revenue is recognized once the recognition criteria is met. These includes;

  • the goods have been delivered or the service rendered
  • the affiliated cost for such revenue can be reliably measured

When revenue is earned but cash is yet to be received,

Debit Accounts receivable

Credit Revenue account

When cash is received,

Debit Cash account  

Credit Accounts receivable.

Since the items were delivered in April, any amount received as revenue in March will be deferred. As such, no revenue will be recognized in the income statement for March.

1. How is inflation measured? Fill in the blanks to complete the passage about the CPI and the GDP deflator. The Consumer Price Index (CPI) and the GDP deflator are both price indices, so they both serve as measures of inflation. However, the CPI uses a smaller basket of goods. The GDP deflator aims to take into account all final goods and services, whereas the CPI only includes goods and services sold to –. So, for instance, prices on farm equipment are included in the – but not in the –.

Answers

Answer:

First blank: Consumers

Second blank: GDP

Third blank: CPI

Explanation:

The Consumer Price Index is used to measure the basic basket of services and goods that a normal person often buys in order to have a decent quality of life, the GDP includes all goods and services produced, for example all the office equipment, or farm equipment that was produced by a countries economy, the average customer doesn´t need farm equipment nor office equipment that is why it is not taken into account in the Costumer Price Index.

Final answer:

Inflation is measured using the Consumer Price Index (CPI) and the GDP deflator. The CPI measures price changes for a specific basket of goods and services bought by the typical consumer, while the GDP deflator considers all domestically produced final goods and services.

Explanation:

Inflation is typically measured using two indices known as the Consumer Price Index (CPI) and the GDP deflator. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Not all goods and services are included in the CPI, it primarily focuses on those sold to typical urban consumers.

On the other hand, the GDP deflator is a measure of the price of all domestically produced final goods and services in an economy including items like farm equipment, which are not included in the CPI. The GDP deflator takes a broader approach and doesn't restrict itself to a fixed basket of goods and services, rather reflects the current composition of output and the prices of all the goods and services currently produced domestically.

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Which of the following accounting steps in the accounting process would be completed last? a.posting b.preparing the financial statements c.preparing the adjusted trial balance d.journalizing

Answers

Answer: b. preparing the financial statements

Explanation: As accounting involves recording, classifying, summarizing, and the interpretation financial information, the accounting process, is considered a series of procedures that are employed in the collection, processing, and communication of financial information. In the accounting process, journal entries are first adjusted (identifying and analyzing business transactions and events) after which they are posted. This represents the first and second steps. Then the adjusted trial balance is prepared, followed lastly by the preparation of financial statements. Therefore, the preparation of financial statements is completed last.

Final answer:

The last step in the accounting process among the options provided is b. preparing the financial statements. The process begins with journalizing, leading through posting, and preparing the adjusted trial balance, before culminating in the financial statement's preparation.

Explanation:

The last step in the accounting process among those provided would be b. preparing the financial statements. The accounting process usually follows these steps: Firstly, transactions are d. journalized (recorded in the journal). Next, these journal entries are a. posted to the ledger. Then, an unadjusted trial balance is prepared to check the equality of debits and credits. The next step is adjusting entries and c. preparing the adjusted trial balance. Finally, the accounting period ends with the preparation of the financial statements, reflecting the company's financial health.

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