analysts estimate that a bond has an equal probability of being priced at either $940 or $1,050 one year from today. the bond is also callable at any time at $1,020. what is the expected value of this bond in one year?
Answers
The expected value of the bond in one year, assuming it is not called, is $995, but since it is callable at $1,020, the expected value of the bond is $1,020.
To calculate the expected value of the bond in one year, we need to consider the probabilities of each possible outcome.
Let P1 be the probability that the bond is priced at $940 in one year, and P2 be the probability that the bond is priced at $1,050 in one year. Since the bond has an equal probability of being priced at either $940 or $1,050, we have:
P1 = P2 = 0.5
The expected value of the bond in one year, assuming it is not called, is the average of the possible prices weighted by their probabilities:
Expected value = P1 x Price1 + P2 x Price2
Expected value = 0.5 x $940 + 0.5 x $1,050
Expected value = $995
However, the bond is callable at any time at $1,020. If the bond is priced above $1,020 in one year, it is likely to be called. Therefore, the expected value of the bond is the maximum of the expected price and the call price:
Expected value = Max(Expected price, Call price)
Expected value = Max($995, $1,020)
Expected value = $1,020
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Related Questions
The perspectives expressed in the public service announcements suggest that popular interest in environmental issues such as smog control emerged most directly from.
Answers
The perspectives that was expressed in the public service announcements emerged from a greater awareness of impacts of abuses of natural resources.
Wnat is perspective?It should be noted that perspective simply means the point of view of an individual regarding a particular issue.
In this case, the perspectives that was expressed in the public service announcements emerged from a greater awareness of impacts of abuses of natural resources.
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As an advertising manager of a company, you have been asked to write a proposal stating why the company should advertise and it's benefits to the company
Answers
Answer: Advertising helps expand the market of the company to have more people to know about the product
Explanation:
Proposal for advertising; My firm, xyz cooperation would love to handle the publicizing aspect of your product while you go ahead your business. We have been into these business for about 20years, so we understand the challenges that comes with the business and how they are tackled. We are creative and emerging with our services, as we offer them with reasonable and affordable prices, do read through our profile as we look forward working with you
Benefits;
1) We expand your market when we advertise for you
2) We brand your firm with a new look and make consumers get attracted
3) We offer a discount of 15% for new firms and subsequently 5% for consistent customers.
Which of the following combines a cooktop and oven into one appliance?
Answers
Answer:
A freestanding range, great for both large and small kitchens, combines a cooktop and oven into one versatile appliance. Whether you're baking, roasting, boiling or frying, a range lets you do it all.
differentiate between health assistant and staff nurse
Answers
Answer:
Medical assistants perform tasks like answering phones and scheduling patients, while a nurse typically only performs tasks related to patient care, such as documenting their condition and writing care plans.
Explanation:
Nurses have some administrative work, but they primarily care for patients. This includes writing care plans and documenting conditions. Medical assistants usually perform management tasks such as answering phones and scheduling patients.
The INS, or Immigration and Naturalization Service, was reorganized in 2003 and became incorporated into _____.
the Department of Homeland Security
the U.S. Marshals Service
the National Security Council
the Justice Department
Answers
Answer: the department of homeland security
Explanation:
Seven years ago, Elise Damato started a business specializing in dog walking and dog grooming. After the first year, her pet food supplier started giving Elise a cash discount of 2.25% on any amount paid within 15 days of the invoice date. On October 25, Elise bought pet food costing $1,064. On November 8, Elise paid $800 on the purchase. Compute the unpaid balance. (This problem involves the partial payment of an invoice within the discount period.)
Answers
Answer:
The answer is $246
Explanation:
Solution
Recall that:
The cash discount from the supplier = 2.25%
Elise purchased pet food for an amount = $1064
On 8 November she paid for a purchase of = $800
The next step to take is to calculate for he unpaid balance as stated from the question given.
Now,
The total amount due = 1064
The amount paid within the period of credit =$800
The cash discount = 2.25%
The corresponding amount of payment before credit for cash discount is = (B/1-C)
Which is = 800/1-2.25%
800/0.977
=818.4
Therefore the unpaid balance is = $1064-818.4
= 245.6 or 246
The class trip is going to cost each of the fifty
students $130.00. If tax is 5%, what is the total
cost for the entire class?
Answers
Answer:
$6,825.00
Explanation:
50x$130=$6,500.00
$6,500 × 5% = $325.00
$325.+$6,500=6,825.00
what is the impact of atm on banking sector?
Answers
Answer:
Explanation:
ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required
ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.
Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.
With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.
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how can person identify whether a company is private company or public company
Answers
Answer:
The overview of that same problem is defined throughout the explanation segment below.
Explanation:
My understanding would be that privately owned businesses will happily inform anyone who queries. Publicly traded companies are identified by the mark as well as the worker's everyone seems to be testing their price of the stock-to decide according to one's interest in share capital.But things are going to change, the FED had already lost together with all remaining remains of knowledge that convince one where the worth of someone's inventory since they have lost Market Exploration.
59) the racquet store (rs) sells franchise agreements in which it charges an up-front fee of $50,000 for assistance in setting up a store, and then a monthly fee of $1,000 for national advertising and administrative assistance. steffi hingis signs a franchise agreement with rs. assume that steffi signed a $50,000 installment note when she signed the franchise agreement. rs can recognize revenue associated with the $50,000:
Answers
When Steffi Hingis signed the franchise agreement with the Racquet Store (RS), the RS could recognize revenue associated with the $50,000 installment note in a few different ways.
RS could recognize the $50,000 as revenue when the franchise agreement is signed and the full payment is received. This method is known as the “point-of-sale” method, and would allow RS to recognize the entire $50,000 up front. Alternatively, RS could recognize the $50,000 in revenue over the duration of the installment note. This method is known as the “installment sales” method and would recognize the $50,000 in revenue as Steffi Hingis makes each installment payment. In addition, RS would also recognize the $1,000 in revenue each month from the monthly fee for national advertising and administrative assistance.
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an informal understanding of expected delivery of benefits in the future for current services is referred to as a(n) _____.
Answers
An informal understanding of expected delivery of benefits in the future for current services is referred to as an implicit contract.
Implicit contracts are unwritten agreements that exist between parties based on mutual understanding and expectations. They often arise in employment relationships, where employees anticipate certain benefits or rewards for their services, even if not explicitly stated in a formal contract. These implicit contracts can include factors such as job security, career development opportunities, promotions, or other non-monetary benefits.
Implicit contracts, although not legally binding, play a significant role in shaping the employment relationship and the psychological contract between employers and employees. They influence employee behavior, motivation, and commitment based on the expectation of reciprocal treatment from their employers. Implicit contracts are shaped by the organization's culture, past practices, and the general expectations set between the parties involved.
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If you were to apply for an administrative personnel position, what might you explain about yourself so that you sound qualified for the job?
“I am good at coming up with meal plans for the office.”
“I am good at filing and organizing paperwork.”
“I am good at replacing light bulbs when they burn out.”
Answers
Answer:
b
Explanation:
Repatriation can be traumatic experience for some even more than what was encountered in the foreign location. From the multinational’s perspective, repatriation is frequently considered as the final stage in the expatriation process.
In the light of above scenario, consider the factors that may contribute to repatriation problems from the returning employee perspective. Recommend some strategies for the HR to enable repatriates and their families to cope up with the issues they may face during the procedure.
Answers
There are several factors that can contribute to repatriation problems from the returning employee's perspective, including: Reverse culture shock, Loss of status and visibility, Career concerns, Family adjustment.
Reverse culture shock: Returning home after spending a significant amount of time in a foreign country can be a culture shock for some employees, as they may have become accustomed to a different way of life, work, and social norms.
Loss of status and visibility: Expatriates often enjoy a higher level of status and visibility in their host country, which may not be the case when they return home.
Career concerns: Repatriates may struggle to find suitable roles within their organization or industry upon their return, leading to career stagnation or even demotion.
Family adjustment: The expatriate's family members may also face challenges adjusting to life back home, such as re-enrolling children in school or finding new social circles.
To help repatriates and their families cope with these issues, HR can consider implementing the following strategies:
Pre-repatriation training: Offer training programs to prepare employees and their families for the transition back home. This could include cultural awareness workshops, career coaching, and practical advice on logistics like housing and schooling.
Ongoing communication and support: Maintain regular contact with repatriates to provide ongoing support and assistance throughout the repatriation process.
Mentoring and networking: Provide opportunities for repatriates to connect with other employees who have gone through similar transitions, and offer mentorship programs to help them navigate the challenges of returning to their home country.
Recognition and integration: Recognize the value of the skills and experience gained during the expatriation assignment and integrate those into the employee's future role within the organization. This can help mitigate feelings of loss and lack of visibility.
By implementing these strategies, HR can help ensure a smoother repatriation process for returning employees and their families, ultimately contributing to a more successful and positive expatriation experience overall.
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When people are in debt, it means there is no income
True or false?
Answers
A personal career profile form can be used to match what you know about yourself to what you know about different careers. TRUE or FALSE.
Answers
Answer:
True
Explanation:
If you look you can understand that personal helps you know yourself.
Answer:
trueeee
Explanation:
on edge
Which two ratios are used in the DuPont System to create Return on Equity (ROE)?
A. Asset Turnover and Debt Ratio
B. Asset Turnover and Profit Margin
C. Profit Margin and Average Collection Period
D. Profit Margin and Current Ratio
Answers
A. Asset Turnover and Debt Ratio.The DuPont System, also known as the DuPont analysis, is a financial analysis technique that breaks down the components of return on equity (ROE) to assess a company's profitability and efficiency.
ROE is calculated as the product of two ratios: the asset turnover ratio and the equity multiplier.
Asset Turnover Ratio: This ratio measures how efficiently a company utilizes its assets to generate sales. It is calculated by dividing the net sales by the average total assets. The higher the asset turnover ratio, the more efficiently the company is using its assets to generate revenue.
Debt Ratio: This ratio represents the proportion of a company's assets that are financed by debt. It is calculated by dividing the total debt by the total assets. A higher debt ratio indicates that a larger portion of the company's assets is financed by debt.
In the DuPont System, the two ratios used to create Return on Equity (ROE) are the asset turnover ratio and the debt ratio. These ratios provide insights into a company's efficiency in utilizing its assets and the extent of debt financing in its capital structure.
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Who makes the decisions in a command economy?
Answers
Major areas of economic production are controlled and guided by the government (or another central authority) in a command economy.
In command economies, "government officials" are the ones who ultimately decide whether to build affordable automobiles for the working class or luxurious cars for the wealthy and powerful.
It has been observed that communist regimes are more likely to have command economy. I hope the response was helpful.
In a command economy, sometimes referred to as a planned economy, all economic operations are planned, coordinated, and under the direct supervision of the central government in order to maximize societal welfare.
As contrast to free-market economies, command economies do not let market forces like supply and demand control production or prices.
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Which resource can you use to view businesses or suppliers divided into different categories?
You may use online or offline _________
to view businesses or suppliers classified into different categories.
Answers
Answer:
yellow pages
Explanation:
It's "Yellow Pages" :)
I got it right on plato <3
If you had a choice how much are you willing to pay per month to have access to and use the various social media platforms?
Answers
Answer: $10 per month
Explanation:
$10 would be an ideal amount for me to pay to have access to the various social media sites if the major sites are on offer.
I think this amount reasonable because I do not use social media all that much but I would still like access to a variety of them. I would essentially therefore, be paying for my reduced time on the net.
Some might say that the companies might not make a profit if they charge $10 a month but I think they will because they make most of their money from ads so it would be good for them to offer the lowest subscription prices so that they can capture more people which will appeal to advertisers.
I NEED HELP ASAP please
Answers
Credit Cards - installment, unsecured, CBE
Mortgage - installment, secured, variable
Payday loan - CBE, secured, and CBE
Personal loan - installment, unsecured, CBE
Small businesses - CBE, unsecured, CBE
Student loan - installment, unsecured, CBE
I believe that’s right. I’m so sorry if it isn’t.
describe the importance of section officer
Answers
Answer:
Section officer are important to give and take the services , cater the services effectively , distribute work among the staff as evenly as possible , drafts laws , put up notes , prepare summaries , manage the relevant record and data of concerned department, reply to letters , communicate with other departments , maintain order and discipline in the section maintenance, etc
true/false. a. inherent in the afn formula is the assumption that each asset item must increase in direct proportion to sales increases and that spontaneous liability accounts also grow at the same rate as sales.
Answers
It is accurate what is said. These two presumptions are part of the fundamental, unaltered AFN formula: (1) each asset item must rise in direct relation to sales rises; and (2) spontaneous liability accounts rise in proportion to sales.
What is meant by proportion?An equation in which two ratios are made equal is known as a percentage. As an illustration, you could express the ratio as 1: 3 if there is 1 guy and 3 girls (for every one boy there are 3 girls) 40% are girls, and 14% are boys. 0.25 are men (by dividing 1 by 4). An example of a ratio that compares a component to a whole is a percentage. For instance, the class with 20 men and 80 women has a total enrollment of 100 students, and the percentage of men is 20/100, or 20%. 80 out of every 100 people are women, or 80%. Relative comparison in terms of size, quantity, number, etc., between objects or magnitudes; ratio. having tastes that are completely out of proportion to one's financial situation. a comparison of size or scope. size, measurements, or proportions a massive rock, in size.To learn more about proportion, refer to:
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Dexter has recently joined an organization. His trainer, ken asks dexter to follow certain processes to complete his work faster. Dexter follows the processes without questioning ken. Which one of Aristotle's elements of good communication is being exemplified in the communication between dexter and ken?
Answers
Answer:
Ethos
Explanation:
Ethos is one of the three Aristotle's elements of good communication that is based on credibility. It explains the reason why a listener should believe what you are saying to them.
This can also come as a result of ones position and in the environment where he is communicating or because of his expertise and skills and knowledge in the subject of communication which actually convince the listeners that you are more knowledgeable.
Ken's position as Dexter's trainers makes allows his credibility to Ken.
Answer:
Ethos
Explanation:
Answered it right on edmentum
All funds entrusted to a licensee on behalf of another party in the practice of real estate are by definition ______.
Answers
Answer:
Trust funds.
Explanation:
An agency can be defined as a mutual relationship existing between two parties, wherein a principal authorizes the agent to act as the principal's representative or on his behalf (fiduciary role) in dealing with third parties.
All funds entrusted to a licensee on behalf of another party in the practice of real estate are by definition known as trust funds.
This ultimately implies that, the legal entity or real estate agent (trustee or licensee) would, d be held responsible for the losses, legal claims and damages incurred by the owner of the property (beneficiary), whether or not the agent's actions were authorized or unauthorized by the principal.
Hence, a trustee is liable for acts or contracts entered into by an agent when he or she gives an agent either actual authority (power of attorney) or apparent authority.
what your name answer in 1 minute
Answers
Answer:
Adrean :)
Explanation:
eugh
Taeyun is retired and his sole source of income is his bond portfolio. Although he has sufficient principal to live on, he only wants to spend the interest income and thus is concerned about the purchasing power of that income. Which one of the following bonds should best ease his concerns? Multiple Choice a. 20-year coupon bonds b. 5-year TIPS c. 5-year municipal bonds d. 6-year coupon bonds e. 7-year income bonds
Answers
5-year TIPS bonds should best ease his concerns. The answer is OPTION B .
A collection of investments that are primarily made up of bonds is called a bond portfolio. Bond portfolios, which generate income in the form of coupons, are sometimes referred to as fixed income portfolios. According to the rule of 110, you should invest as much of your money in stocks as your age is times 110.
According to the 110-30 rule, if you are 30 years old, you should have 80% (110-30) of your money invested in stocks and 20% in bonds. The U.S. Treasury bill, sometimes known as a T-bill, is the safest kind of bond. These are ultrashort fixed-income instruments with maturities of one year or less that were issued by the US government.
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jaheem, who owns a hardware store, uses an income statement to show his revenue and expenses over the past three years to potential investors. True or false?
Answers
True. An income statement is a financial statement that shows a company's revenue and expenses over a period of time. It is used to measure a company's performance and help potential investors, creditors, and other stakeholders make informed decisions.
What is investor?An investor is a person or entity that allocates capital with the expectation of a future financial return. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments, etc.), private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds or exchange-traded funds) or public investors (such as governments, public pension funds and sovereign wealth funds). Investment management is the professional asset management of various securities (shares, bonds, and other securities) and other assets (e.g. real estate) in order to meet specified investment goals for the benefit of the investors. Investors may be retail investors, institutional investors or high-net-worth individuals.
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When advertisers want to reach the same audience more than once, they are concerned with ______.a. humorb. targetc. frequency
Answers
When advertisers want to reach the same audience more than once, they are concerned with frequency.
What is frequency?
Frequency refers to the number of times an ad is exposed to the same audience during a certain period. It is a key concept in advertising because it allows marketers to ensure that their message reaches their target audience, and it is frequently used in the context of media planning and buying to maximize the impact of advertising campaigns.
How does frequency help advertisers?
Frequency helps advertisers by increasing the chances that their message will be noticed, remembered, and acted upon. By exposing their target audience to their message more than once, advertisers can reinforce their brand, build trust, and create a lasting impression that will drive sales and boost brand loyalty.
How to calculate frequency?
Frequency can be calculated by dividing the total number of impressions by the total number of people in the target audience. For example, if a campaign generated 10,000 impressions and reached 5,000 people, the frequency would be 2. This means that the average person in the target audience saw the ad twice during the campaign.
What are the benefits of frequency?
There are many benefits to using frequency in advertising campaigns. For one, it helps to reinforce the message and create a lasting impression. It also helps to build trust and credibility with the target audience, as well as increase brand loyalty. Additionally, it can help to drive sales and generate more revenue for the business. All of these factors contribute to the overall success of an advertising campaign, and make frequency an essential component of any marketing strategy.
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When interest rates are high, consumers have a greater incentive to ______ more, but when interest rates are low, consumer have a greater incentive to ______. M
a. buy; sell
b. borrow; save
c. sell; buy
d. save; borrow
Answers
When interest rates are high, then the consumers have a greater incentive to save more, but when interest rates are low, consumer have a greater incentive to borrow more.
What is Interest Rate?This refers to the charge which is given for a particular loan which is replayed after a certain time.
With this in mind, high interest rates are not appealing to customers so they rather save and then borrow when the interest rates are low.
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Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. What is the total amount that will be reported for inventories?
Answers
Jon works for a manufacturing company. On the balance sheet for the end of the year, raw materials amounted to $45,600, finished goods were $8,960, and the cash equivalents were equal to $10,500. The total amount that will be reported for inventories is $54,560
On the balance sheet:
Raw materials amounted = $45,600
Finished goods = $8,960
cash equivalents = $10,500
Now,
The total amount of inventory will include only the raw material and the finished goods
The cash is not included in the inventory
Therefore,
The total amount that will be reported in the inventory will be
= Amount of raw material + Amount of finished goods
= $45,600 + $8,960
= $54,560
Therefore the total amount that will be reported for inventories is $54,560.
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