Spring Clean, Sparkle Glass, and Dazzle Floor are various cleaning liquids marketed under the brand name "Clean Homes." Therefore Clean Homes" is a brand name or a brand that offers a range of cleaning products.
A brand is a name, term, design, symbol, or other feature that distinguishes a product or service from its competitors. By using a brand name, companies can create an identity and reputation for their products or services, and differentiate themselves from their competitors in the marketplace. The Clean Homes brand name suggests that the products offered are designed to provide a clean and sparkling home.Brand names are an essential aspect of marketing, and they serve as a valuable tool for companies to build customer loyalty and increase brand awareness. Companies often spend significant resources on developing and promoting their brand names, as they can significantly impact customer perception and purchasing decisions.
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Spring clean, sparkle glass, and dazzle floor are various cleaning liquids marketed under the brand name clean homes. therefore, clean homes is a cleaning. A brand is anything that sets a product or service apart from its rivals.
Various cleaning solutions sold under the name "Clean Homes" include Spring Clean, Sparkle Glass, and Dazzle Floor. As a result, "Clean Homes" refers to a company that sells a variety of cleaning supplies. A brand is anything that sets a product or service apart from its rivals, including names, terms, designs, symbols, and other features.
Companies can distinguish themselves from rivals in the market by adopting a brand name to build an identity and reputation for their goods or services. The products under the Clean Homes brand name are ostensibly made to give a spotless house.Brand names are a crucial component of marketing and a useful tool for businesses to develop consumer loyalty and raise brand awareness. As brand names have a substantial impact on consumer perception and purchasing behaviour, businesses frequently invest significant resources in creating and promoting them.
Complete question:
spring clean, sparkle glass, and dazzle floor are various cleaning liquids marketed under the brand name clean homes. therefore, clean homes is a__________.
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this year, barney and betty sold their home (sales price $510,000; cost $140,000). all closing costs were paid by the buyer. barney and betty owned and lived in their home for 18 months. assuming no unusual or hardship circumstances apply, how much of the gain is included in gross income?
Based on the given information, Barney and Betty sold their home for a sales price of $510,000 and had a cost of $140,000. This means that they have a gain of $370,000 ($510,000 - $140,000). To calculate the portion of the gain included in gross income, we need to look at the ownership and use tests.
Since Barney and Betty owned and lived in the home for 18 months, they meet the ownership and use tests. The tax code allows for a partial exclusion of the gain on the sale of a primary residence for up to $250,000 for a single taxpayer or up to $500,000 for a married couple filing jointly, as long as they meet the ownership and use tests.
In this scenario, assuming Barney and Betty are married and filing jointly, they are eligible for the full $500,000 exclusion. Therefore, none of the gain will be included in their gross income. However, if they had not met the ownership and use tests, they would have to pay taxes on the entire $370,000 gain.
Hi there! Based on the information provided, let's calculate the gain from the sale of Barney and Betty's home and determine how much of it is included in their gross income.
1. Calculate the gain: Sales price ($510,000) - Cost ($140,000) = $370,000
2. Determine the ownership and residency period: Barney and Betty owned and lived in the home for 18 months, which is less than the required 24 months (2 years) to qualify for the full home sale exclusion.
3. Home sale exclusion rule: If a homeowner meets the ownership and residency requirement, they can exclude up to $250,000 (single) or $500,000 (married) of gain from their gross income. In this case, Barney and Betty do not meet the full requirement.
4. Partial exclusion: Since they lived in the home for 18 months (75% of the required 24 months), they may be eligible for a partial exclusion. The maximum exclusion for married couples is $500,000, so they could potentially exclude 75% of $500,000, which is $375,000.
5. Compare the gain and the partial exclusion: The gain is $370,000, and the partial exclusion is $375,000.
Since the gain is less than the partial exclusion, Barney and Betty can exclude the entire gain of $370,000 from their gross income.
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Describe international events that could affect the number and types of jobs in a country
Answer and Explanation:
The international events that can affect the number and type of employment in a country are:
International crises: Crisis in the financial sector of partner countries can affect the availability of employment in another country in a very intense way. As we know, countries need to export products to each other, when one of the importers suffers a financial crisis and stops importing, there may be a decrease in the commercial production of the exporting country, which may close factories and stop the production of products as a result.
Political instability: It can cause the same as international crises, mainly due to the devaluation of the currency that occurs in countries with instability.
Partnerships and political conflicts: Partnerships between countries promote great trade between them. This will mean that countries need to produce products and services in greater quantity and therefore hire more people. Political conflicts, however, can have the opposite effect. In addition, political conflicts between two countries may cause other countries to stop exporting products in support of the allied country.
Economic sanctions: These are impositions that the most powerful countries impose on the least powerful countries, preventing a certain product from being produced or exported. Without exports, the production of the product falls. This affects the number of producing companies and the number of job openings.
what happen if a person dies and they wanted someone to have there car. They died and everyone knows that the car was suppose to go to that person, but the person that died didn't have I will or anything saying it was suppose to go to that person, can they still get the car?
Answer:
it all depends on if the family is the giving type as some people would try to hold on to things from listed onesand others would try to Give them away ....in shot people grieve differently so it's a 50/50 chance
Answer:
probably not because it's just like if this family met an old person about to die and pretended to be nice and do things for him until he died then went to the police and said that he would give them his house so now a days u can't just go off of 'they said ___ before I died' SO like I said again probably not
Suppose 2 athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal instalments. In the other case, we're told that the $80 million will be paid in 10 instalments, but the instalments will increase by 5% per year. Who got a better deal and why?
Answer:
player 2 is signing a better contract
Explanation:
the present value of an annuity (player 1) = annual payment x annuity factor
assuming that the interest rate is 10%
present value = $10 million x 6.1446 (PV annuity factor, 10%, 10 periods) = $61.446 million
player 2's contract
the present value of a growing annuity = [payment / (i - g)] x {1 - [(1 + g) / (1 + i)]ⁿ} = [$10 / (10% - 5%)] x {1 - [(1 + 5%) / (1 + 10%)]¹⁰} = $200 x 0.372 = $74.398 million
i am doing in interview for business opportunities around my area what questions should i ask
Answer: General questionsWhen did you start your business?Why did you decide to become a business owner?What was your mission at the start of your company?How many employees does your company have?What services or products do you offer?How do you advertise your business?
Explanation: i think it’s right
Typical queries include: When did your business begin? Why did you choose to start a business? What was the purpose of your business when it first began? How many people work for your company? What products or services do you provide? How do you promote your company?
What is an interview?An interview is a planned dialogue in which one party asks questions and the other replies. The term "interview" in everyday speech describes a private discussion between an interviewer and an interviewee.
The interviewee replies to queries by the interviewer by typically supplying information. The use of or distribution of that information to other audiences is entirely up to you.
This characteristic is evident in many different sorts of interviews; even when no one else is present during a witness interview or a job interview, the answers will be made available to others later on in the hiring or investigating process. Information can be exchanged in both directions during an interview.
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Which of the following is an example of sunk costs?A) wages to security staffsB) cost of purchasing raw materialsC) cost of an alternative investmentD) wages payable to skilled laborers to make a product
Among the options provided, wages payable to skilled laborers to make a product is an example of sunk costs. Option D
Sunk costs are costs that have already been incurred and cannot be recovered, regardless of any future action taken Once wages are paid to laborers, the cost is considered a sunk cost. It cannot be recovered even if the product is not successfully sold or the project is cancelled.
On the other hand, the cost of purchasing raw materials is not a sunk cost because the company has the option to return or resell the materials if they are not needed or if the project is cancelled. The cost of an alternative investment is not a sunk cost either because the company has the option to invest or not to invest in the alternative.
Wages to security staffs are also not necessarily a sunk cost, depending on the circumstances. If the company has the option to reduce the number of security staffs and recover some of the cost, then it is not a sunk cost.
Understanding sunk costs is important in decision-making because they should not be considered in future decisions. Future decisions should only consider relevant costs and benefits.
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Read each statement about trademarks, trade secrets, copyrights, and patents, select the TWO True statements.
Question 14 options:
Trade Secrets are confidential information which may be sold or licensed.
A Trademark protects a brand name.
A Patent is used to protect an original work, like music.
A Copyright is used to protect a company logo.
The two true statements regarding trademarks, trade secrets, copyrights, and patents are as follows.
What are the reasons?Firstly, a trademark is a form of intellectual property that protects a brand name, symbol, or slogan used by a company to identify and distinguish its products or services from those of others.
This ensures that consumers can identify and trust the quality of a company's products or services. Secondly, a copyright is a type of intellectual property protection that is used to safeguard original works of authorship, such as literary, artistic, or musical works.
While a company logo may be eligible for copyright protection, it is not the primary purpose of copyright law.
Instead, copyrights are designed to protect creative works that are fixed in a tangible form and provide exclusive rights to the creator or owner of the work.
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Fixed costs that usually arise from annual spending decisions by management are called?
Fixed costs that usually arise from annual spending decisions by management are discretionary costs.
What is CBA?CBA is an acronym for cost-benefit analysis and it can be defined as a financial technique (utilitarianism) which is used by individuals, business firms and government to examine and compare the cost that is associated with a product, project or task and the benefits that would be derived from it.
What is a discretionary cost?A discretionary cost can be defined as a type of fixed cost that is usually generated from various annual spending decisions by the executive management of a business organization.
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Does the method for calculating credit scores seem fair to you? Why or why not?
Credit scores are primarily determined by your payment history, credit utilization, average age of your accounts, account mix, and frequency of credit applications (inquiries).
What is the method for calculating credit scores ?While each of these factors is significant, they are not all given the same weight by the hundreds of credit scoring models in use today.
Your financial situation does not always factor toward your credit score. Rent and utility payments are frequently not recorded to credit bureaus, so even if you have been making them on time for years, you may still not have a credit history. This might be particularly challenging for young people or newly arrived immigrants.
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1. How does income get from business to Consumers?
The transfer and redistribution of capital happens through multiple mechanisms and directional flows
Transfers of income from businesses to consumers can occur through the economic redistribution from taxation. Businesses can also sell to consumers who in-turn resell.
who is office cheif ? write any four function of office cheif ( subject : account)
Answer:
Office Chief is someone who is responsible for the implementation of office work. The position of an office chief is very important, because the office chief is a member of the leadership, and he is the last link in the chain of command from the highest leadership.
The 4 functions of Office Chief, include:
Preparing long term and short terms plans and policies of the organization. Dividing the work among the workers in the organization. Directing and coordinating the activities of the different staff and departments. Adopting good remuneration system for motivating workers.Answer:
Cheif Keef
Explanation:
5),[5] better known by his stage name Chief Keef, is an American rapper. Cozart's music first became popular during his teen years in the early 2010s among high school students from Chicago's South Side.[6] In 2012, his popular local single "I Don't Like" was remixed by American rapper Kanye West and reached the Billboard Rap Top 20, further raising Cozart's profile.[6] A bidding war between major labels resulted in Keef signing with Interscope. His debut album Finally Rich was released in December 2012, and featured the singles "I Don't Like" and "Love Sosa", which would popularize the Chicago rap subgenre drill.[7]
Chief Keef has faced ongoing legal issues during his career, including weapons possession charges, house arrest sentences, and a performance ban imposed by Chicago authorities.[8] Though he was dropped from Interscope in late 2014 and later signed to 1017 Records, he continued self-releasing projects through his own Glo Gang label. These included: Nobody (2014), Back from the Dead 2 (2014), Bang 3 (2015), and Th0t Breaker (2017).
By the late 2010s, critics have pointed to Chief Keef as a major influence on contemporary hip hop through his innovation with the drill subgenre and the impact of his music on other artists.[9][7][10]
An audio processor, routinely used in production mixers and recorders, that prevents an audio signal from passing a certain threshold is called a?
Limiter is what is called to an audio processor that is routinely used or utilize in production mixers and recorders. This will prevent audio signal from passing a certain threshold.
Since it can help increase the volume of an entire production, audio limiting is frequently used in mashing up, mixing, recording, and enhancing audios. This tool greatly resembles an audio compressor in that it also lowers the dynamic range of incoming signals.
We can make audio sound like it does on the stereos by using limiters, or we can simply make the sounds smoother and stable. A limiter creates a limit that no signal can cross by completely preventing it from doing so.
Compressors as well as limiters must be used sparingly because they can easily snuff out the soul from a full sound.
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How do I quit my job as cashier already wrote resignation letter
During the two years he has been working, Jeffrey has saved some money to buy a house. His parents have agreed to loan him part of the down payment, and he has started to look for a house he can afford. He discovered a great house that has two apartments in it. He has looked at all the information carefully, done his budget, and thinks he can afford the house because he will live in only part of it and will rent out the other half. If Jeffrey buys this house, lives in the apartment upstairs and rents out the apartment downstairs, which of the following is true?
Answer:
you have to give "the following"
assuming a $0.75 cost per acquisition, on average, how long does it take for the users to pay back their acquisition cost?
Assuming a $0.75 cost per acquisition, on average, the payback period can be calculated by dividing the acquisition cost by the average revenue generated per user. It takes an average of 0.5 units of time (which can be measured in months, years, etc.) for the users to pay back their acquisition cost.
Payback period = Acquisition cost / Average revenue per user
Let's say the average revenue per user is $1.50. Using the formula, we can calculate the payback period:
Payback period = $0.75 / $1.50 = 0.5
Therefore, it takes an average of 0.5 units of time (which can be measured in months, years, etc.) for the users to pay back their acquisition cost.
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The Federal Reserve Act of 1913 required all ________ banks to become members of the Federal Reserve System, while ________ banks could choose to become members of the system.a. state; nationalb. national; municipalc. national; stated. state; municipal
Answer:
c. national; state
Explanation:
The Federal Reserve Act of 1913 required that banks that operated nationally had to join the Federal Reserve System. It was mandatory, and national banks had to do it.
It also allowed banks that operated on a state level to join the Federal Reserve System, but that was optional, it was not mandatory.
Company-paid health insurance is a major benefit sought out by many employees. If coverage for a family costs $20,000 per year and your employee is paid $28,000 per year, what percentage of their total compensation is the healthcare benefit?
Answer:
~42
Explanation:
Ex. Company-paid health insurance is a major benefit sought out by many employees. If coverage for a family costs $15,000 per year and your employee is paid $40,000 per year, what percentage of their total compensation is the healthcare benefit?
SOLUTION:
$15,000 / ($15,000 + $40,000) = 0.272 x 100 = 27.2%
Problem: 20/20+28=0.416=41.6%
carl’s house payment is $1,050 per month and his car payment is $385 per month. if carl’s take-home pay is $2,800 per month, what percentage does carl spend on his home and car?
Carl spends 51.25 percentage points of his take-home pay on his home and car payments.
Carl spends a total of $1,050 + $385 = $1435 on his home and car each month. To find the percentage of his take-home pay that he spends on these expenses, we can use the following formula:
Percentage = (Total expenses / Take-home pay) × 100
Plugging in the given values, we get:
Percentage = ($1435 / $2800) × 100
Simplifying, we get:
Percentage = 0.5125 × 100
Percentage = 51.25%
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Why is a brand important to a business?
How much y’all think I’m worth?
Y’all think ima great dancer?
Who follows me
Answer:
What????..............
In an empirical economic analysis, how does the econometric model relate to the economic model? check all that apply.
The economic model is similar to the econometrics model as Both models attempt variables and its identical to the econometrics model.
Both choose and introduce variables. The econometric model imposes a functional form on the more generally specified economic model. According to the data B and D are true and A and C are false.
Basically, empirical economics analysis is the approach of economics by first indicating the data by the specification of the econometrics model. This is the study of the evidence-based interpretation of data that could be resolved by this empirical method.
During the empirical study, econometrics is the core approach for the economics empirical model.
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By the monetary unit assumption, how would an accountant view the promotion of good morale in business?
A. as something useful
B. as something important
C. as something useless
D. as something necessary
By the monetary unit assumption, an accountant would view the promotion of good morale in business as something useless. Thus, option 'C' is the correct option.
What is a monetary unit assumption?According to the monetary unit assumption, the dollar's stability should allow for the addition of dollars from various years without the need for any adjustments. The monetary unit assumption is invalidated when the dollar's value changes significantly over time. The fact that U.S. accountants record a corporation's assets as dollar quantities is another aspect of the monetary unit assumption (rather than reporting details of all of the assets).
An asset cannot be recorded in a general ledger account if it cannot be valued in dollars. A particularly successful company's management staff, for instance, can be its most important resource. The accountant, however, is unable to accurately translate those gifted individuals into US dollars.
Therefore, option 'C' is the correct option.
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By the monetary unit assumption an accountant view the promotion of good morale in business as something useless. Option (c) is correct.
What do you mean by Promotion?The term "promotion" covers a wide range of activities designed to increase public awareness or advance a product. Promotion in the context of a career means raising a worker's position or rank within a hierarchical structure.
Companies must only include transaction data that can be stated in terms of money in their accounting records because of the monetary unit assumption. The economic entity assumption mandates that each economic entity's operations be maintained distinct from those of its owner(s) and other economic entities.
Therefore, Option (c) is correct. By the monetary unit assumption an accountant view the promotion of good morale in business as something useless.
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Suppose the elasticity of demand for cereal is 1. If cereal increases in price by 25 percent, how much will the quantity demanded decrease by?.
Quantity demanded after price increase = Quantity demanded before price increase * (1 - percent change in quantity demanded)
= 100 * (1 - 25%) = 100 * 0.75 = 75
How much will the quantity demanded decrease by?.The elasticity of demand measures the responsiveness of quantity demanded to a change in price. A value of 1 for the elasticity of demand means that a 1 percent increase in price will lead to a 1 percent decrease in the quantity demanded.So, if cereal increases in price by 25 percent, we can expect the quantity demanded to decrease by 25 percent, because:Percent change in quantity demanded = elasticity of demand * percent change in price= 1 * 25% = 25%This means that if the quantity demanded for cereal was 100 units before the price increase, after the price increase, we can expect the quantity demanded to decrease to 75 units:Quantity demanded after price increase = Quantity demanded before price increase * (1 - percent change in quantity demanded)= 100 * (1 - 25%) = 100 * 0.75 = 75To learn more about quantity refer:
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ACold Inc. Is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Demand for CFPs averages 400 per day with a standard deviation of 152. Because ACold orders at least one truck from its supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives four days after the order.
ACold Inc. Is a frozen-food distributor with 10 warehouses across the country. Ivan Tory, one of the warehouse managers, wants to make sure that the inventory policies used by the warehouse are minimizing inventory while still maintaining quick delivery to ACold's customers. Because the warehouse carries hundreds of different products, Ivan decided to study one. He picked Caruso's Frozen Pizza (CFP). Demand for CFPs averages 400 per day with a standard deviation of 152. Because ACold orders at least one truck from its supplier each day, ACold can essentially order any quantity of CFP it wants each day. In fact, ACold's computer system is designed to implement an order-up-to policy for each product. Ivan notes that any order for CFPs arrives four days after the order.
Suppose it uses an order up to level of 2410. What is its expected on-hand inventory?
Answer:
The expected Inventory on -hand = 429.074
Explanation:
From the given information;
Mean i,e Demand for CFPs averages = 400 per day
standard deviation = 152
Lead TIme = 4 days
period length = ACold Inc. orders at least one truck from its supplier each day,
Let consider the fact that the order is up to level of S = 2410
Then, the expected demand for the lead time is;
\(\mu\) = Demand × (Lead time + period length)
\(\mu\) = 400 × ( 4 + 1)
\(\mu\) = 400 × 5
\(\mu\) = 2000
the standard deviation for the lead time as well is :
\(\sigma\) = standard deviation sd\(\sqrt{lead \ time \times period \ length }\)
\(\sigma\) = \(152 \sqrt{4+1}\)
\(\sigma\) = \(152 \sqrt{5}\)
\(\sigma\) = 339.88
The z - value for the test statistics can now be computed as:
\(z = \dfrac{X - \mu}{\sigma}\)
\(z = \dfrac{2410 - 2000}{339.88}\)
\(z = \dfrac{410}{339.88}\)
\(z = 1.2063\)
z = 1.21
The order upto level = Inventory on -hand + Inventory order - Backorders
The order upto level - Inventory order + Backorders = Inventory on -hand
Inventory on -hand = The order upto level - Inventory order + Backorders
where ;
the backorders = \(\sigma L(z)\) and \(L(z)\) = standard loss
From the tables of distribution function and inventory function for standard normal distribution function
L(z) = 0.0561
the backorders can now be = 340 × 0.0561
the backorders can now be = 19.074
Recall that :
Inventory on -hand = The order upto level - Inventory order + Backorders
consider the fact that the order is up to level of S = 2410
∴ Inventory on -hand = 2410 - 2000 + 19.074
Inventory on -hand = 410 + 19.074
Inventory on -hand = 429.074
the most important step for a salesperson in planning a sales call is to:
The most important step for a salesperson in planning a sales call is to conduct thorough research and preparation. This includes understanding the prospect's needs and pain points, researching the competition, and preparing a customized pitch.
Sales calls are an opportunity for a salesperson to showcase their product or service and convince the prospect to make a purchase. Without proper research and preparation, the sales call may not be effective and could potentially harm the salesperson's credibility. By taking the time to research and understand the prospect's needs and pain points, the salesperson can tailor their pitch to address these specific concerns and increase the likelihood of a successful sale. Additionally, researching the competition can provide valuable insights into how to differentiate the product or service and provide a competitive advantage. Overall, thorough preparation is crucial for a salesperson to make the most of their sales call and increase their chances of success.
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what are the effect of enterprise/business on environment? write them
Answer:
Varies
Explanation:
They can go against natural resources.
How should work history be listed
a{with the most recent experience last
b{in a separate document
c[in your cover letter
D{with the most recent experience first
Answer:
It depends on whether you have a lot of work experience- if you do then you want to list your work history first and if you don't then you want to list your education first.
Explanation:
Answer: with most recent experience first
Explanation: I took the test
Which of the following are examples of limited resources on the part of consumers?
product and space
money and product
time and money
space and time
Answer:
The answer is time and money
Explanation:
I took the test on edge
Examples of limited resources on the part of consumers are time and money.
What are limited resources?
Limited resources are resources that can be depleted. They are of limited availability. As these resources are used, they decline.
For example, no one has an unlimited supply of money. As money is spent, the amount of money one has reduces. Also, time is limited. One has 24 hours in a day.
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Question 1 A 5% bond with semiannual coupons has a face amount of 100 and was issued on January 15 , 2010. The first coupon was paid on July 15, 2010, and the bond has a maturity date of January 15,2030 . The yield rate is i (2)
=8% (a) Find the price of the bond on its issue date. Leave your answer to the nearest cent. [4] (b) Is the bond bought at a discount or at a premium? Briefly explain your answer. [2] (c) Suppose that the bond is sold for a price of 100.25 on January 15, 2021, just after a coupon has been paid, and suppose that the original bondholder was able to deposit coupons into an account earning an annual interest rate of 6% convertible semi-annually. Find the average effective annual rate of return earned by the original bond purchaser on his/her investment. Assume that interest on the deposit account is credited every January 15 and July 15. [6] (d) Find the full price and market price of the bond on October 1, 2020 using a yield rate of i (2)
=4%. Leave your answers to the nearest cent. [8]
To solve this problem, we'll use the bond pricing formula and the concept of yield rates. Let's break down each part. Hence the price of bonds is $106.66.
(a) To find the price of the bond on its issue date, we need to calculate the present value of all future
. The coupon payments are made semiannually, and the bond has a face value of 100. The yield rate is
\(Price = C * [1 - (1 + r)^(-n)] / r + F / (1 + r)^n\)
.The band has a total of 40 semiannual periods (20 years * 2). We can use the bond pricing formula:
\(Price = C * [1 - (1 + r)^(-n)] / r + F / (1 + r)^n\\\)
Where:
C = Coupon payment
r = Yield rate per period
n = Total number of periods
F = Face value
In this case:
C = 5% * 100 / 2 = 2.50 (since coupons are semiannual)
r = 8% / 2 = 4% (since the yield rate is given semiannually)
n = 40
F = 100
Substituting the values into the formula:
Price = 2.50 * [1 - (1 + 0.04)^(-40)] / 0.04 + 100 / (1 + 0.04)^40
Price ≈ $98.54 (rounded to the nearest cent)
Therefore, the price of the bond on its issue date is approximately $98.54.
(b) To determine whether the bond was bought at a discount or a premium, we compare the issue price to the face value. In this case, the issue price ($98.54) is less than the face value ($100), indicating that the bond was bought at a discount. This is because the yield rate is higher than the coupon rate, making the bond less attractive to investors.
(c) To find the average effective annual rate of return earned by the original bond purchaser, we need to consider the cash flows received from the bond and the interest earned on the deposited coupons.
From January 15, 2010, to January 15, 2021, there are 22 semiannual periods. The bondholder sells the bond for $100.25 just after a coupon payment. The coupon payment is 2.50.
First, let's calculate the interest earned on the deposited coupons:
Interest earned on each coupon = coupon payment * (1 + interest rate per period)^(number of periods)
\(Interest earned on each coupon = 2.50 * (1 + 0.06 / 2)^(22) \\= 2.50 * (1.03)^22\\ = 2.50 * 1.814447 \\ 4.536118\)
Next, calculate the total amount received from the bond and the deposited coupons:
Total amount received = Selling price of the bond + Interest earned on the deposited coupons
Total amount received
\(100.25 + (4.536118 * 20) \\ 100.25 + 90.72236 \\ 191.97236\\\)
The original investment was $98.54 on January 15, 2010, and the final amount received was $191.97236 on January 15, 2021. The holding period was approximately 11 years.
Using the formula for the average effective annual rate of return:
[(Ending value / Beginning value)^(1 / number of years)] - 1
\([(191.97236 / 98.54)^(1 / 11)] - 1 \\ 0.06662 or 6.662%\)
Therefore, the average effective annual rate of return earned by the original bond purchaser on their investment is approximately 6.662%.
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Direction: Design your own financial transaction worksheet and indicate the effect of each transaction below using the balance sheet equation. After each transaction is properly recorded, compute new subtotals for the Assets, Liabilities, and Owner’s Equity.
Studio Co
Nikkita Co, a veteran photographer, opened a studio for her professional practice on July 1 Transactions completed during the month follows:
July
1
-
Deposited P146, 200 in a bank account in the name of the business, Studio Co
2
-
Bought new photography equipment on account from Canon, Equipment, P71, 210
3
-
Invested personal photography equipment into business, P51,620.
7
-
Paid office rent for the month, P5,500
8
-
Bought photography supplies for cash, P7, 960.
15
-
Paid premium for insurance cover on photography equipment, P1, 240
16
-
Received P8,960 as professional fees for services rendered.
20
-
Paid salary of part-time assistant, P6,000
21
-
Received and paid bill for telephone service, P640
24
-
Paid Canon Equipment part of the amount owed on the purchase of photography equipment, P4,200
26
-
Received P15,480 as professional fees for service rendered
29
-
Paid for minor repairs to photography equipment, P760
31
-
Co withdrew cash for personal use, P9,600
Answer: What's going on.
What accounts are affected.
How are they affected
Does the balance sheet balance.
Does the analysis make sense
Explanation: