the two primary groups of financial resource providers for a business (conversion agent) are

Answers

Answer 1

The two primary groups of financial resource providers for a business (conversion agent) are equity investors and debt providers.

Equity investors are individuals or institutions that invest in a company by purchasing a portion of its ownership, known as stock or shares. They receive a share of the company's profits in the form of dividends and benefit from any increase in the value of the company's stock.

Debt providers, on the other hand, lend money to the company and receive regular interest payments and repayment of the principal amount at a later date. Examples of debt providers include banks, bondholders, and other creditors.

Both equity investors and debt providers have different expectations and preferences when it comes to the risk and return associated with their investment, which can impact the financial decisions and strategies of the company.

Know more about business here:

https://brainly.com/question/15826604

#SPJ11


Related Questions

_____ is the narrowest monetary aggregate that the Fed reports.
A) M0
B) M1
C) M2
D) M3

Answers

The narrowest monetary aggregate that the Fed reports is M0, also known as the monetary base.

M0 includes physical currency, reserves held by banks at the Fed, and other deposits held by the Fed. M1, on the other hand, includes M0 plus checking account deposits and traveler's checks, making it slightly broader. M2 includes M1 plus savings deposits, money market mutual funds, and other time deposits, making it even broader. Finally, M3 includes M2 plus large time deposits, repurchase agreements, and institutional money market funds, making it the broadest of the four monetary aggregates. Understanding the different monetary aggregates is important because they can impact the economy in different ways, such as through changes in interest rates and inflation. The Fed monitors these aggregates closely as part of its monetary policy decision-making process.

Learn more about monetary aggregates from here:

https://brainly.com/question/10706198

#SPJ11

Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires eight direct-labor hours, while the professional binoculars require ten hours. The firm uses direct-labor hours for flexible budgeting. Required: How many standard hours are allowed in May, when 800 field models and 900 professional binoculars are manufactured?

Answers

15,400 standard hours are allowed for the production of 800 field models and 900 professional binoculars

To determine the standard hours allowed in May for the production of 800 field models and 900 professional binoculars, follow these steps:
1. Calculate the direct-labor hours required for the field models:
  Field models require 8 direct-labor hours per unit.
  Standard hours for field models = 800 units * 8 hours/unit = 6,400 hours
2. Calculate the direct-labor hours required for the professional binoculars:
  Professional binoculars require 10 direct-labor hours per unit.
  Standard hours for professional binoculars = 900 units * 10 hours/unit = 9,000 hours
3. Add the standard hours for both models to find the total standard hours allowed in May:
  Total standard hours allowed = 6,400 hours (field models) + 9,000 hours (professional binoculars) = 15,400 hours
Learn more about "standard hours" at https://brainly.com/question/22119791

#SPJ11

1) Bonds with a face value of $300,000 and a quoted price of 1021/4 have a selling price of-
A. $360, 675.
B. $306, 075.
C. $300, 675.
D. $306, 750.

Answers

Bonds with a face value of $300,000 and a quoted price of 1021/4 means that the bonds are being sold at 102.25% of their face value. To calculate the selling price of these bonds, we simply multiply the face value by the quoted price as a decimal (102.25/100), which gives us $306,750.

It's important to note that the quoted price of a bond is not always equal to its selling price. The quoted price is the price at which the bond is currently trading in the market, while the selling price is the actual price at which the bond is being sold. In this case, the quoted price of 1021/4 indicates that the bond is in high demand, which drives up its selling price to $306,750.
Investors can use the quoted price of a bond to determine its yield, which is the return on investment that the bond will provide. In this case, the yield on the bond can be calculated by dividing the annual interest payment (which is typically a fixed percentage of the face value) by the selling price of $306,750.

to know about bonds visit:

https://brainly.com/question/4490452

#SPJ11

assume a tax was placed on producers in this market of $20 per unit. the price consumers pay as a result of this tax increases by:

Answers

The price consumers pay as a result of a tax placed on producers is called the "taxes inclusive price." The taxes inclusive price is calculated by adding the tax to the price of the good.

In this market, if the tax on producers is $20 per unit, the taxes inclusive price would be:

Taxes inclusive price = Price + Tax

Taxes inclusive price = 100+20

Taxes inclusive price = $120

So the price consumers pay as a result of this tax would increase by

from100 to $120.  

Learn more about taxes

https://brainly.com/question/23347326

#SPJ4

Those who oppose Employment at Will (EAW) contend that because private property rights grant manager's authority over employees, the right of property is not limited by other rights and duties.
True
False

Answers

False. Opponents of Employment at Will (EAW) do not contend that private property rights grant unlimited authority to managers over employees.

They argue that employment relationships should not be purely at-will and that employees should have greater protection from arbitrary dismissal. They argue that employment relationships should be governed by a set of laws, regulations, and policies that protect workers' rights and interests. They contend that managers' authority over employees should be balanced with employees' rights and interests. Therefore, EAW opponents believe that property rights should be limited by other rights and duties to protect the interests of all parties involved.

learn more about authority  here :

https://brainly.com/question/31628660

#SPJ11

In which of the following nations was the institution of slavery replaced by indentured servitude? a. Haiti b. British Guiana c. West Indies d. England.

Answers

The institution of slavery was replaced by indentured servitude in British Guiana and the West Indies. In these regions, the British used indentured laborers from India to replace the slave workforce after slavery was abolished in the 19th century.

Indentured servitude was a system of labor where individuals were contracted to work for a specific period of time, usually four to seven years, in exchange for passage to the colonies and other benefits such as land or wages. This system was meant to be temporary, but many indentured laborers were subjected to harsh working conditions and abuse.

Nevertheless, the use of indentured laborers from India was significant in transforming the economies of these regions. This period marked a shift from the exploitative system of slavery to a new form of labor that was still fraught with issues but represented a step towards greater human rights and justice.

In contrast, England did not replace slavery with indentured servitude as slavery was abolished in England before it became a significant part of its economy.

Learn more about slavery here

https://brainly.com/question/867366

#SPJ11

simon put $5,000 worth of stocks and bonds into an asset management account at fido investments. one month later, his account statement indicated that he had a balance of $5 million. simon quickly withdrew this amount from his account and put it into a swiss bank account. can fido rescind its payment of $5 million to simon on the grounds of mistake?

Answers

It is possible that Fido Investments could attempt to rescind the payment of $5 million to Simon on the grounds of mistake.

In order for a mistake to be a valid legal defense for rescission, it must be a mistake of fact and not a mistake of value or judgment. If Fido can prove that the $5 million payment was made due to a factual mistake (e.g., an error in accounting or a glitch in the system), and that Simon knew or should have known that the payment was made in error, then Fido may have grounds to rescind the payment.

However, if the payment was made correctly and without mistake, then Fido would not have a valid legal defense for rescission. It is important to note that this is a complex legal issue and would likely require further Investments and legal analysis.

To learn more about Investments, visit here

https://brainly.com/question/15353704

#SPJ4

Which of the following statements reflects the American notions of the importance of objectivity?Americans place emphasis on economics and performance rather than peopleLong-term reciprocity is usually the basis of commercial interactions in China.American sellers tend to treat American buyers as equals

Answers

Americans place emphasis on objectivity and rationality in decision-making.

In American culture, objectivity is highly valued and is considered an important factor in decision-making, particularly in the business world. Americans tend to rely on data, facts, and logic rather than emotions and personal relationships when making decisions. This emphasis on objectivity is also reflected in American communication styles, which tend to be straightforward and to the point. Unlike in some other cultures, such as China, long-term reciprocity is not typically the basis of commercial interactions in the US. Additionally, while American sellers may treat American buyers with professionalism and respect, there is not necessarily an expectation of equality in all business interactions.

Know more about American culture here:

https://brainly.com/question/17396096

#SPJ11

when it comes to gathering market research on customers, most small companies tend to be:

Answers

When it comes to gathering market research on customers, most small companies tend to be resource-limited and focused on cost-effective methods.

They often rely on primary data sources like customer surveys, feedback, and social media interactions to gather insights and understand their target audience's preferences and needs.

When it comes to gathering market research on customers, most small companies tend to be either limited in their resources or lack the expertise needed to conduct extensive research. As a result, they may rely on simple surveys or customer feedback forms to gain insights into their target market. However, it's important for small companies to invest in market research to understand their customers' needs, preferences, and behaviors in order to make informed business decisions and stay competitive in their industry.

learn more about feedback here:

https://brainly.com/question/30449064

#SPJ11

a bond issued in uk by a company based outside england? a bond issued in uk by a company based outside england? tea bond bulldog bond fish and chips bond queen bond

Answers

A bond issued in the UK by a company based outside England is known as a foreign bond. These bonds are issued by foreign companies looking to raise capital in the UK market. There are different types of foreign bonds, including tea bonds, bulldog bonds, fish and chips bonds, and queen bonds.

Tea bonds are issued by Asian countries, such as China and India, to raise capital in the UK market. Bulldog bonds are issued by non-UK European companies, while fish and chips bonds are issued by US companies. Queen bonds are issued by Commonwealth countries, including Canada, Australia, and New Zealand.

Foreign bonds are attractive to investors because they offer diversification opportunities, higher yields, and exposure to different currencies and economies. However, they also carry higher risks, including currency and political risks. It is important for investors to carefully consider the risks and benefits before investing in foreign bonds.

to know more about foreign bond. click this link

brainly.com/question/29839047

#SPJ11

no response (ignoring) is a valid option for companies finding positive comments online(True/False)

Answers

The best alternative is False. While it may be tempting for companies to only respond to negative comments online, ignoring positive comments is not a valid option.

Positive comments and reviews are a valuable form of feedback that can help businesses understand what they are doing right and what they should continue to do in order to keep customers satisfied. Additionally, responding to positive comments can help to build and maintain strong relationships with customers, as it shows that the company values and appreciates their feedback. Ignoring positive comments could lead to missed opportunities to engage with customers and potentially even lost business. Therefore, it is important for companies to respond to both positive and negative comments online in a timely and professional manner.

to know about positive comments visit:

https://brainly.com/question/31309952

#SPJ11

Consider:
Y=10000
C=400+.75(Y-T)
G=500
T=800
I=2500-20r
Find the equilibrium real interest rate.

Answers

The equilibrium real interest rate is 160.

To find the equilibrium real interest rate, we need to equate the demand for investment and the supply of savings. We can express this as follows:

Savings = Investment

S = Y - C - G

S = Y - (400 + 0.75(Y - T)) - G

S = Y - (400 + 0.75(Y - 800)) - 500 (Substituting T = 800 and G = 500)

S = Y - (400 + 0.75Y - 600) - 500

S = Y - 0.75Y + 400 - 600 - 500

S = -0.25Y - 700

Investment = I

I = 2500 - 20r

Equating the demand for investment and the supply of savings, we get:

S = I

-0.25Y - 700 = 2500 - 20r

Simplifying this equation, we get:

-0.25(10000) - 700 = 2500 - 20r

-2500 - 700 = 2500 - 20r

-3200 = -20r

r = 160

For more about equilibrium:

https://brainly.com/question/28527601


#SPJ4

responses to all identifiable risks should be a top priority for the project manager.(True/False)

Answers

True. Responses to all identifiable risks should be a top priority for the project manager.

As a project manager, it is essential to identify and manage risks throughout the project lifecycle. Risk management involves identifying potential risks, assessing their likelihood and impact, and developing strategies to mitigate or respond to them. Responding to all identifiable risks should be a top priority for the project manager to ensure that the project is completed on time, within budget, and to the desired quality standards. Failure to manage risks effectively can result in project delays, cost overruns, and a lower quality outcome.

Therefore, risk management is an important aspect of project management that should not be overlooked.

To know more about project manager, click here:

https://brainly.com/question/15610382

#SPJ11

Which of the following best explains the recent decline in the role of financial intermediaries? A) Private production and sale of information B) Government regulation to increase information C) Improvements in information technology D) None of the above can explain the recent decline

Answers

The best explanation for the recent decline in the role of financial intermediaries is improvements in information technology. This is because technological advancements have made it easier and more efficient for individuals and businesses to access and share financial information.

Reducing the need for intermediaries to facilitate these transactions. While private production and sale of information and government regulation to increase information can also contribute to the decline, they are not as significant as the impact of technology.


Decline in the role of financial intermediaries is,Improvements in information technology. This has led to more efficient and direct ways for individuals and businesses to access financial services, reducing the need for intermediaries. The improvements in information technology have made it easier for people to gather information, analyze it, and make financial decisions without relying on intermediaries.

To know more about- financial intermediaries,Visit:-

https://brainly.com/question/31062324

#SPJ11

business case arguments based on fear are dependent on ________. A) the belief that implementing the new information system can have significant positive consequences for the firmB) beliefs about organizational strategy, competitive advantage, industry forces, customer perceptions, market share, and so onC) data, quantitative analysis, and/or indisputable factors D) the notion that if the system is not implemented, the firm will lose out to the competition or go out of businessE) the results of a qualitative analysis of employee responses to the new information system

Answers

Business case arguments based on fear are dependent on the notion that if the system is not implemented, the firm will lose out to the competition or go out of business (option D).

Fear-based arguments are a common technique used to persuade stakeholders to support a particular course of action. These arguments rely on the belief that negative consequences will occur if the recommended action is not taken. In the case of a business case, fear-based arguments often suggest that failure to implement a new information system will result in the company falling behind its competitors or even going out of business. Fear-based arguments may be effective in motivating stakeholders to support the proposed change, but they can also be perceived as manipulative or coercive. Business case arguments may also be based on other factors, such as the benefits that the new information system will bring to the firm (option A), analysis of the organization's strategy, competitive advantage, industry forces, customer perceptions, and market share (option B), or data and quantitative analysis (option C). Qualitative analysis of employee responses to the new information system (option E) can also be used to support a business case, but it is not directly related to fear-based arguments.

Learn more about Business case

https://brainly.com/question/30471461

#SPJ11

jane purchased machinery on april 8 of the current year. the relevant costs for the year are as follows: machinery purchase price for $10,000, $800 shipping, $50 for delivery insurance, $500 for installation, $750 for sales tax, $150 for an annual tune up in september, and $200 for personal property taxes assessed in december. what is jane's tax basis for the machinery? - (answer: $ )?

Answers

_________________________________

= 10,000 + 800 + 50 + 500 + 750 + 150 + 200= 12,450= 12% × 12,450= $1,494Jane's Tax Basis For The Machinery Is $1,494

_________________________________

west-coast publishers employs 43 workers with a gross biweekly payroll of $47,128. fringe benefits are $8.31 per employee for life insurance and 10.9% of payroll for a stock purchase plan. what is the total cost of fringe benefits?

Answers

The total cost of fringe benefits for the company is $5,493.53. It is important for companies to consider the cost of fringe benefits in addition to payroll when calculating total labor costs.

To calculate the total cost of fringe benefits for West-Coast Publishers, we need to consider the cost of life insurance and the stock purchase plan.


The company employs 43 workers and offers a life insurance benefit of $8.31 per employee. Therefore, the total cost of life insurance for each pay period would be $8.31 x 43 = $357.33.


Additionally, the company offers a stock purchase plan that costs 10.9% of the biweekly payroll. To calculate this cost, we need to multiply the biweekly payroll by the percentage cost of the stock purchase plan:

$47,128 x 0.109 = $5,136.20

Therefore, the total cost of fringe benefits for West-Coast Publishers is the sum of the life insurance cost and the stock purchase plan cost:

$357.33 + $5,136.20 = $5,493.53


So, the total cost of fringe benefits for the company is $5,493.53. It is important for companies to consider the cost of fringe benefits in addition to payroll when calculating total labor costs.

To know more about company click here:

https://brainly.com/question/30532251

#SPJ11

Amazon.com is known primarily for its use of which of the following business models? a) Market creator b) Content provider c) Transaction broker d) E-tailer

Answers

Amazon.com is known primarily for its use of E-tailer business models
The answer is d).

Amazon.com is primarily known as an e-tailer, which is a business model that involves selling goods and services directly to customers through an online platform. Amazon.com started as an online bookstore and has since expanded to sell a wide variety of products, including electronics, clothing, and household items.

Amazon.com has become a dominant player in the e-tailer market, with a vast selection of products, competitive pricing, and fast shipping. In addition to its e-tailer business model, Amazon.com has also developed other business models, such as its Amazon Web Services (AWS) cloud computing platform and its Marketplace platform, which allows third-party sellers to sell their products on the Amazon.com website.

However, Amazon.com's primary business model remains e-tailing, and it has been highly successful in this space, disrupting traditional brick-and-mortar retailers and changing the way people shop for goods and services.

Hence, the answer is d)

To know more about business model, refer here:
https://brainly.com/question/13397493#
#SPJ11

What happens to the net public debt if the federal government operates next year with​ a:budget​ deficit?Increases.b. balanced​ budget?Remains unchanged.c. budget​ surplus?Decreases

Answers

The net public debt is the total amount of money that the federal government owes to its creditors, including individuals, businesses, and foreign governments


If the federal government operates next year with a budget deficit, this means that it is spending more money than it is collecting in revenues. As a result, it will need to borrow money by issuing Treasury bonds to finance its spending. This will increase the net public debt, as the government will owe more money to its creditors.

On the other hand, if the federal government operates next year with a balanced budget, this means that it is collecting as much in revenues as it is spending.

To know more about federal government visit:-

https://brainly.com/question/20083762

#SPJ11

Which term refers to a possible exposure of the advertising message to one audience member?A.Advertising reachB.Medium receptivityC.Advertising

Answers

The term that refers to a possible exposure of the advertising message to one audience member is advertising impression.

An impression is a measure of how many times an advertisement is viewed by an individual user. It can be tracked through various mediums, including television, radio, print, and online advertising. An impression can be generated through a variety of ways, including when an advertisement is displayed on a website, when it is played on the radio, or when it appears on a television screen.

The number of impressions is an important metric for advertisers to track because it can help them understand how many people are potentially being reached by their advertising message. By analyzing impressions data, advertisers can make informed decisions about how to allocate their advertising budget and optimize their advertising campaigns.

Learn more about audience here:

https://brainly.com/question/30435704

#SPJ11

Which of the following is not an inside force that indicates organizational change might be needed?A. high turnoverB. excessive conflict between managers and employeesC. increased competitionD. high levels of stress among employeesE. job dissatisfaction

Answers

Of the options provided, increased competition is not an inside force that indicates organizational change might be needed.


On the other hand, high turnover, excessive conflict between managers and employees, high levels of stress among employees, and job dissatisfaction are all inside forces that can indicate the need for organizational change.

High turnover, for example, may suggest that employees are not satisfied with their jobs or do not feel supported by the organization, which could lead to a need for changes in management or company culture. Similarly, excessive conflict between managers and employees can indicate communication or leadership issues that require change.

To know more about organizational  visit:-

https://brainly.com/question/30955895

#SPJ11

which describes a market with a monopsony? please choose the correct answer from the following choices, and then select the submit answer button. answer choices a lawyer who is being recruited by one of several law firms in a city a lawyer who is being recruited by several law firms several lawyers who are being recruited by several law firms several lawyers who are being recruited to work at the only law firm in the state

Answers

A market with a monopsony is "several lawyers who are being recruited to work at the only law firm in the state."


A monopsony market is a situation where there is only one buyer of a particular product or service. In this case, the only law firm in the state is the only buyer of legal services in the market. As a result, the firm has significant bargaining power over the lawyers it is recruiting, and it can potentially offer lower salaries or worse working conditions than in a more competitive market.


On the other hand, the other answer choices do not fit the definition of a monopsony market. In the first answer choice, the lawyer has multiple options to choose from, indicating a competitive market. In the second answer choice, several law firms are competing to recruit the same lawyer, which also suggests a competitive market. In the third answer choice, there are multiple buyers and multiple sellers, which is a characteristic of a perfectly competitive market.

To know more about monopsony click here:

https://brainly.com/question/31627452

#SPJ11

When using FYI messages, who is likely to gain the most benefit from the message?
Both the sender and receiver
The organization
The receiver
The sender

Answers

When using FYI messages, both the sender and receiver are likely to gain some benefit from the message. For the sender, it allows them to share information that they believe is relevant or important without necessarily requiring a response or action from the receiver. This can be useful for keeping team members informed of updates or changes within the organization, or for sharing knowledge or resources that may be helpful in their work.

This may be particularly true if the message is intended to help align employees around a particular initiative or goal, or if it's designed to promote a culture of transparency and open communication within the organization.
The receiver is likely to gain the most benefit from FYI messages, as they are intended to keep them informed or updated on a specific matter .Overall, while there are certainly cases where specific individuals or groups may benefit more from an FYI message than others, it's fair to say that the practice can be beneficial for everyone involved, provided that the message is well-crafted and appropriately targeted to its intended audience.


To know more about organization visit :-

https://brainly.in/question/25016893

#SPJ11

an individual that has 40 quarters of coverage, for social security purposes, is considered to be

Answers

An individual with 40 quarters of coverage is considered fully insured for Social Security benefits, ensuring future financial security and support.

In the context of Social Security, "coverage" refers to the period during which an individual has paid Social Security taxes, and "quarters of coverage" represent the cumulative total of such periods. To qualify for Social Security benefits, an individual must generally have at least 40 quarters of coverage, which is equivalent to 10 years of work.

When an individual reaches 40 quarters of coverage, they are considered to be "fully insured" for Social Security purposes. This means that they have met the minimum work requirements to be eligible for retirement benefits, as well as disability and survivor benefits if applicable. The amount of benefits they will receive depends on their earnings record, but having 40 quarters of coverage ensures that they will have access to Social Security benefits, providing financial security for themselves and potentially their dependents as well. The Social Security Administration periodically reviews an individual's work record to determine their eligibility for benefits, and attaining 40 quarters of coverage is a significant milestone in securing future financial support.

Learn more about social security here: brainly.com/question/23913541

#SPJ11

the three methods used to classify costs into their fixed and variable components includesmultiple select question.regressionscatter diagramsvariable-fixed methodhigh-low methodmost-squares regression

Answers

The three methods used to classify costs into their fixed and variable components include the high-low method, scatter diagrams, and regression analysis (specifically the least-squares regression method).

The three methods used to classify costs into their fixed and variable components are:

High-Low Method: This method involves selecting the highest and lowest levels of activity, and then calculating the variable cost per unit of activity. The fixed cost component is then determined by subtracting the total variable cost from the total cost at either the high or low level of activity.

Scatter Diagrams: This method involves plotting historical cost and activity data on a graph and visually analyzing the relationship between them. The data points are then fit to a line, and the slope of the line represents the variable cost per unit of activity, while the intercept represents the fixed cost component.

Regression Analysis: This method involves using statistical techniques to estimate the relationship between cost and activity data. A regression equation is then developed, which can be used to predict future costs based on the level of activity. The slope of the regression line represents the variable cost per unit of activity, while the intercept represents the fixed cost component. Therefore, the correct answers are: high-low method, scatter diagrams, and regression analysis.

To learn more about fixed and variable here:

https://brainly.com/question/24317573

#SPJ11

the author of the book mentions that michael porter might have said of enterprise systems that?

Answers

Without knowing which specific book and author you are referring to, it is difficult to give a precise answer. However, I can provide some general information about Michael Porter and enterprise systems. Michael Porter is a renowned Harvard Business School professor and strategy expert who is well-known for his work on competitive advantage and the Five Forces framework. While he is not typically associated with enterprise systems specifically, he has written about the importance of information technology in enabling competitive advantage.

In his book "Competitive Advantage: Creating and Sustaining Superior Performance," Porter argues that technology can be a key driver of competitive advantage, but only if it is used strategically. He emphasizes the importance of aligning IT investments with business strategy and using technology to support unique value propositions. In the context of enterprise systems, Porter might argue that they can be a powerful tool for creating efficiencies and streamlining processes, but only if they are designed and implemented in a way that supports the overall business strategy. Simply implementing an enterprise system without considering how it will support the organization's competitive advantage is unlikely to lead to significant benefits.

Overall, while Porter may not have specifically commented on enterprise systems, his work on strategy and competitive advantage can provide useful insights for organizations looking to leverage technology to achieve their goals.

To know more about Michael Porter visit:-

https://brainly.com/question/29869394

#SPJ11

when a company co-signs a note payable for another entity, a current liability must be recorded. true or false

Answers

Answer:

True

Explanation:

The statement "when a company co-signs a note payable for another entity, a current liability must be recorded" is True.

When a company co-signs a note payable for another entity, it becomes obligated to pay back the loan if the borrower defaults. This creates a liability for the co-signing company, and it must be recorded as a current liability on the balance sheet. The co-signer is essentially acting as a guarantor for the loan, and the lender may seek repayment from the co-signer if the borrower is unable to repay the loan.

The co-signer's liability will depend on the terms of the note and the extent of their obligation to repay the loan. As a result, the co-signer will need to disclose this liability in its financial statements.

To know more about current liability, visit:

https://brainly.com/question/14287268#

#SPJ11

last year, lorenzo bought a bond for $10,000 that promises to pay him $700 per year. this year, he can buy a bond for $10,000 that promises to pay $800 per year. if lorenzo wants to sell his old bond, what is its price likely to be? $14.29 $11,428.57 $12.5 $8,750

Answers

The price of the old bond is likely to be $6,928.57, which is closest to option (D) $8,750.

The price of a bond is determined by the present value of its future cash flows, discounted at the bond's yield to maturity.

In this case, we can assume that the yield to maturity for both bonds is the same. Therefore, we can use the formula for the present value of an ordinary annuity to calculate the price of the old bond.

The formula for the present value of an ordinary annuity is:

PV = C x [(1 - (1 + r)^-n) / r]

Where:

PV = present value

C = cash flow per period

r = discount rate (yield to maturity)

n = number of periods

Using the information given, we can calculate the present value of the old bond as follows:

C = $700 per year

r = yield to maturity

n = number of years (since the bond has been held for one year, we assume that it has 9 years left until maturity)

PV = $700 x [(1 - (1 + r)^-9) / r] = $6,676.35

Therefore, the price of the old bond is likely to be $6,676.35.

We can verify that this price is reasonable by comparing it to the price of the new bond. Using the same formula, we can calculate the present value of the new bond as follows:

C = $800 per year

r = yield to maturity

n = number of years (assumed to be 10 years since it is a new bond)

PV = $800 x [(1 - (1 + r)^-10) / r] = $9,630.68

Since the price of the old bond is lower than the price of the new bond, the investors don't find is reasonable to assume that the old bond will be priced at a discount.

The discount percentage can be calculated as:

Discount percentage = (Price of new bond - Price of old bond) / Price of new bond x 100%

= ($9,630.68 - $6,676.35) / $9,630.68 x 100%

= 30.7%

Therefore, the old bond is likely to be priced at a discount of approximately 30.7%.

To calculate the actual price of the old bond, we can apply the discount percentage to the face value of the bond, which is $10,000:

Price of old bond = $10,000 - (30.7% x $10,000)

= $6,928.57

Option D

For more  such questions on investors

https://brainly.com/question/30130634

#SPJ11

bright sun solar panels manufactures its products overseas. there has been a change in the leadership and the ruling party opposes foreign influence (including business) in the country. this situation would fall in which quadrant of the swot model? group of answer choices internal strength internal weakness external opportunity external threat

Answers

The situation would fall under the external threat quadrant of the SWOT model. This is because the ruling party's opposition to foreign influence poses a threat to Bright Sun Solar Panels' business operations as they manufacture their products overseas.

The external threat is a factor that is beyond the control of the company and could potentially harm its business growth and success. In this situation, Bright Sun Solar Panels could analyze the external threat and take necessary measures to mitigate the risk. For example, they could explore opportunities to manufacture their products locally or diversify their business operations to other countries where the ruling party's opposition does not exist. It is important for businesses to conduct a regular SWOT analysis to identify their internal strengths and weaknesses, as well as external opportunities and threats. By doing so, they can develop a strategic plan that leverages their strengths, addresses their weaknesses, takes advantage of opportunities, and prepares for potential threats.

To know more about the SWOT model

https://brainly.com/question/25066799

#SPJ11

An SLA for latency should specify a ______. A) maximum latency. B) minimum latency. C) both A and B D) neither A nor B.

Answers

The correct answer is Option A. An SLA for latency should specify a maximum latency.

An SLA (Service Level Agreement) is a contract between a service provider and a customer that outlines the level of service that the customer can expect to receive. Latency refers to the time delay between a request being made and the response being received. A maximum latency specifies the maximum amount of time that a service provider has to respond to a request. The SLA should also include other details such as uptime guarantees, customer support availability, and other service metrics that are important to the customer.

Know more about Service Level Agreement here:

https://brainly.com/question/30931750

#SPJ11

Other Questions
a(n) server-based idps protects the server or hosts information assets. True or false? the phosphorylation of the ctd of rna polymerase ii is important for which phase of transcription? What produces the 21-cm radio line that we can be used to map the Milky Way Galaxy?A) atomic hydrogenB) ionized hydrogen C) molecular hydrogen D) carbon monoxide E) helium Write the empirical formula of at least four binary ionic compounds that could be formed form the following ions: Fe2+,Au3+, Cl-,O2- _____, a coding method that uses one byte per character, is used on mainframe computers and high-capacity servers.a. EBCDIC (Extended Binary Coded Decimal Interchange Code)b. Unicodec. ASCII (American Standard Code for Information Interchange)d. ISO (International Organization for Standardization) why does overloading coolers or freezers affect freezer performance and cause a safety issue? a detector element (del) size of 200 microns will produce how much spatial resolution? 4. Two vinyl balloons with an identical chargeare given a separation distance of 52 cm. Theballoons experience a repulsive force of2.74x103 N. Determine the magnitude ofcharge on each one of the balloons.A. 2.50x105 CB. 4.11x10-4 CC. 8.21x105 CD. 2.87x107 CASAP I WILL MARK BRAINIST T/F : If you have a fully funded emergency fund, you might consider increasing your stop-loss. Because global economies are interconnected, all of the following statements are true exceptLess-developed countries are less likely to feel the effects of a global economic crisis.Economic crises can spread rapidly around the world.Managers who see growth in one economy should look for growth in other economies.Companies will face economic crises on a regular basis. Core inflation is found by removing _________ from the consumer price index.a)producer pricesb)food and energyc)housingd)medical care A successful business must generate most of its cash from: 0 A. noncash investing and financing activities OB, operating activities. C. financing activities. D. investing activities. in the scrum method, team members work as a self-directed group coached by the scrummaster. True/False Choose TWO other words from the passage with a similar connotation to the word "rankness."ResponsesAhorrid BmiseriesCdistract Dsufficient Eagitates. (Farewell Address) according to the author, leonardo da vincis mona lisa dazzled his contemporaries because: Which of the following refers to the emphasis achieved b the scaling of sizes or shapes?a. balanceb. proportionc. gradationd. unity A chessboard is made up of 8 rows and 8 columns of squares. Each little square is 42 cm2 in areaShow that the shortest distance from the upper right corner to the lower left corner of the chessboardis 73.32 cm. Calculate the orbital inclination required to place an earth satellite in a 300 km by 600 km sun-synchronous orbit. State the formula for the phenotypic variance in a population, give a brief definition of each term?Interpret the meaning of an H2 value (broad-sense heritability) that approaches 1.0Interpret the meaning of the H2 value (broad-sense heritability)that approaches 0.0 in the 1960 campaign, which political party took a strong stance for racial justice and equality?