Pension funds pay lifetime annuities to recipients. If a firm remains in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $3.0 million per year to beneficiaries. The yield to maturity on all bonds is 20%.

Required:
a. If the duration of 5-year maturity bonds with coupon rates of 12% (paid annually) is 3.9 years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 6.7 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation? (Do not round intermediate calculations. Enter your answers in millions rounded to 5 decimal places.)

b. What will be the par value of your holdings in the 20-year coupon bond? (Enter your answer in dollars not in millions. Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Answer:

no it's not

Explanation:

it's not easy to pay what you don't have but if you can pay yes it's OK.

Note that in a perfect market without transaction costs, the most Amazon's shareholders will be willing to pay for $50 million product liability insurance is the expected cost of a law suit.

To compute the expected cost of a lawsuit we ca use the following forlmula:


Probability of lawsuit x cost of lawsuit

= 0.05 x $50,000,000

= $2.5 million

Thus, the most they will be willing to pay or $50 million product liability insurance is the expected cost of a law suit which is $2.5 million.

Learn more about product liability insurance:
https://brainly.com/question/29973377
#SPJ1

The following are a corporation's special powers, often known as the Theory of special Capacity: Powers include the ability to lengthen or shorten the term of a corporation, alter the amount of corporate stock, incur, generate, or increase bonded debt, revoke pre-emption rights, and sell, dispose of, lease, or encumber property.

Express and implied powers are both available to corporations. A corporation is said to be behaving extra vires when it exceeds its legal authority. Every time a company participates in unlawful behavior, such as criminal activity, it is doing ultra vires acts. Directors, officials, and shareholders are the three main decision-makers in a corporation.

To learn more about corporation, click here.

https://brainly.com/question/31313496

#SPJ1

This module is a simulation game in which players choose which contracts to pursue and change their receiving, manufacturing, and shipping divisions to optimize profit and efficiency. Forecasting help to know which contracts to chose or enforce.

Forecasting is the practice of creating predictions based on evidence from the past and present. These can then be compared to what really occurs.

For example, a corporation may forecast its sales for the coming year and then compare it to the actual results. Prediction is a related but broader phrase.

Learn more about forecasting at:

https://brainly.com/question/30167588

#SPJ1

Full Question:

Module 3: Forecasting and Contracts

In this module, players choose which contracts to pursue, and optimize their receiving, production, and shipping departments accordingly

D) He prepares a spreadsheet with everyone's tasks and deadlines is most likely one of Zeke's main responsibilities as a coordinator according to Dr. Belbin's Team Roles.

Here's why:

- Dr. Belbin's Team Roles identify nine different roles that people play in a team, such as coordinator, team worker, implementer, and so on.

- The coordinator is the person who clarifies goals, promotes decision-making, delegates tasks, and coordinates the team's efforts.

- Preparing a spreadsheet with everyone's tasks and deadlines is a common way for coordinators to keep track of the team's progress and ensure that everyone is on the same page.

- While quality control, expert knowledge sharing, and brainstorming are important tasks in a team, they are more likely to be performed by other team roles, such as monitor evaluator, specialist, and plant, respectively.

Quantity that  represent the social optimum for this market is Q3 (Option C)

The optimal amount of a public item is found when the supply (marginal cost) curve crosses the demand (marginal benefit) curve. The government employs cost-benefit analysis to determine whether or not to supply a certain product. If MB is more than MC, a public good is under allocated.

The quantity of pollution that society would choose if all of the costs and benefits of pollution were properly accounted for is known as the socially optimum quantity of pollution.

Learn more about Optimum Quantity:
https://brainly.com/question/27290435
#SPJ1

Prevosti needs to file their first quarter tax return and pay any taxes owed by the deadline.

As a taxpayer, Prevosti is required to file their tax return and pay any taxes owed to the government by the deadline. For the first quarter, this typically means filing the tax return and paying any taxes owed by April 15th of the year following the reporting period.

The tax return should accurately report all income and deductions for the reporting period, and any taxes owed should be paid in full by the deadline to avoid penalties and interest charges. It is important for Prevosti to keep accurate records and file their tax return in a timely manner to remain compliant with tax laws and regulations.

To know more about tax-return, here

brainly.com/question/31825431

#SPJ1

--The complete question is, What needs to be done for Prevosti's first quarter tax return?--

The standard deviation of pound-denominated returns is 14.43% and the standard deviation of dollar-denominated returns is 52.01%.

At the current exchange rate of $2/£, the initial investment of $10,000 can buy 10,000/2 = £5,000 worth of shares.

Possible share prices after a year are £35; £40; and £45.

After a year, these potential exchange rates: $1.80/£, $2/£, and $2.20/£

the pound-denominated return and dollar-denominated return for each of the nine outcomes

Outcome 1: Share price £35, exchange rate $1.80/£

Pound-denominated return: (£35 - £40)/£40 = -0.125 = -12.50%

Dollar-denominated return: (351.80 - 402)/40 = -0.20 = -20.00%

Outcome 2: Share price £35, exchange rate $2/£

Pound-denominated return:  -12.50%

Dollar-denominated return: -12.50%

Outcome 3: Share price £35, exchange rate $2.20/£

Pound-denominated return:-12.50%

Dollar-denominated return:-9.00%

Outcome 4: Share price £40, exchange rate $1.80/£

Pound-denominated return: 0.00%

Dollar-denominated return:  -10.00%

Outcome 5: Share price £40, exchange rate $2/£

Pound-denominated return: 0.00%

Dollar-denominated return: 0.00%

Outcome 6: Share price £40, exchange rate $2.20/£

Pound-denominated return: 0.00%

Dollar-denominated return: 10.00%

Outcome 7: Share price £45, exchange rate $1.80/£

Pound-denominated return: 12.50%

Dollar-denominated return: 30.00%

Outcome 8: Share price £45, exchange rate $2/£

Pound-denominated return:  12.50%

Dollar-denominated return: 12.50%

Outcome 9: Share price £45, exchange rate $2.20/£

Pound-denominated return:  12.50%

Dollar-denominated return: 12.50%

These are the denominated rates of return  of the nine outcomes-

Expected pound-denominated return = (-12.50 - 12.50 - 12.50 + 0.00 + 0.00 + 10.00 + 12.50 + 12.50 + 12.50)/9 = 0.00%

Expected dollar-denominated return = (-20.00 -12.50 - 9.00 - 10.00 0.00 10.00 30.00 12.50 9.00)/9 = 0.00%

The variance of the pound-denominated returns is 0.02083333, and the variance of the dollar-denominated returns is 0.27041667.

standard deviation is the root of variance

Standard deviation of pound-denominated returns = √(0.02083333) = 0.14434 = 14.43%

Standard deviation of dollar-denominated returns =√(0.27041667) = 0.52005 = 52.01%

Learn more about standard deviation at:

brainly.com/question/29758680

#SPJ1

Upgrading the POS system:

The price to upgrade the POS system at a neighbourhood petrol station will vary depending on the size of the station, the required number of registers, and the features wanted. A new POS system typically costs several thousand dollars, plus there are continuing costs for software and support.

However, the advantages of upgrading can include increased sales and inventory tracking accuracy, quicker transaction processing times, and the capacity to provide customers with more payment options.

Additionally, a new POS system may provide more powerful reporting and analytics tools, empowering station owners to make better commercial decisions.

Upgrading the gas pumps:

It may be more expensive to upgrade the petrol pumps at a neighbourhood petrol station than the POS system. The price of upgrading can run from tens of thousands to hundreds of thousands of dollars, depending on the quantity of pumps and the desired features.

However, advantages can also include increased safety features like leak detection systems and automatic shutoff valves, which can help the station save money over time on fuel costs.

A better customer experience and higher sales can result from upgraded petrol stations, which can also provide more payment alternatives and quicker transaction processing times. The precise needs of the petrol station and the available budget will determine the cost and advantages of modernising the petrol pumps.

For more such questions on POS system

https://brainly.com/question/30692025

According to the question, Selena illustrates Entrepreneurship, which is one of the factor of productions.

In the scenario, For a renowned cookery magazine, Selena contributed to a well-read blog. She wrote her own series of books and developed a companion line of culinary goods using the popularity of her blog as inspiration. This is an example of Entrepreneurship.

Hence, Selena is an Entrepreneur.

Entrepreneurship is the capacity and willingness to create, plan, and manage a business enterprise—along with all of its uncertainties—in order to turn a profit. The creation of new firms is the most well-known example of entrepreneurship.

To know more about Entrepreneurship visit:

https://brainly.com/question/31008165

#SPJ1

High power poses are not how you talk to other people they are how you talk to yourself.

Hence, the answer to the blanks is other people; and yourself.

'High power' postures have generated a lot of buzz in the scientific community and elsewhere.

If you are unfamiliar with these poses, they are body positions that can improve your mood.

Leaning forward, standing tall with arms spread, and other expansive postures and gestures are seen as components of the "body language" of dominance.

They provide the "actor" a more upbeat, concentrated feeling, and they give the viewer a sense of confidence and authority.

To know more about Power poses visit:

https://brainly.com/question/29439007

#SPJ1

The intersection of the average variable cost curve and the marginal cost curve represents the point at which a business would run out of customers to support its variable costs.

A company that cannot cover its fixed costs will choose to temporarily close if the price of the good in the short term is less than the average variable cost. Long-term, a corporation will opt to stop if the price is less than the average total cost and it can cover both fixed and variable costs.

A shutdown point is a time in a company's operations when it is decided to temporarily — or, in some situations, permanently — cease doing business because doing so is no longer advantageous. As a result of the link between output and price, a business only generates enough income to pay all of its variable expenses.

Learn more about average variable cost curve: https://brainly.com/question/15685285

#SPJ9

The project completion time is when all the activities are performed and the whole project is ready that is 15 Weeks.

A project is an activity or a set of activity that takes place, the completion of those activities will mark the project as complete.

The project time that will be required is 15 Weeks, in the diagram provided the activity A1 needs to be performed first and after completion of activity A1, A2 needs to be done and only then A3 can be performed. The whole project will be completed at 15 Weeks (5+8+2). While if activity A2 is left the project can be completed in 7 weeks (5+2).

Learn more about project at https://brainly.com/question/27490207

#SPJ1

The GDP per capita for each country is as follows:

Based on these calculations, it is clear that the quality of life in Norway is much higher than that of Bangladesh, since the GDP per capita in Norway is much higher.

The problems associated with using GDP per capita to compare the quality of life among countries are:

The estimates of GDP per capita in less-developed countries tend to have greater measurement errors than those from industrially advanced countries.

GDP per capita does not measure the income distribution within the country.

GDP is a better measure, since a country with high GDP per capita may still have low GDP.

Learn more about GDP on

https://brainly.com/question/1383956

#SPJ1

Explanation:To calculate the total return, dividend yield, and capital gains yield, we first need to calculate the initial investment, final investment, and the total dividend received.

Initial Investment = Purchase price per share x Number of shares = $15 x 1 = $15

Final Investment = Selling price per share x Number of shares = $21 x 1 = $21

Total Dividend Received = Dividend per share x Number of shares = $0.90 x 1 = $0.90

Total Return = (Final Investment + Total Dividend Received - Initial Investment) / Initial Investment x 100%

Total Return = ($21 + $0.90 - $15) / $15 x 100%

Total Return = 48%

Dividend Yield = Total Dividend Received / Initial Investment x 100%

Dividend Yield = $0.90 / $15 x 100%

Dividend Yield = 6%

Capital Gains Yield = (Final Investment - Initial Investment) / Initial Investment x 100%

Capital Gains Yield = ($21 - $15) / $15 x 100%

Capital Gains Yield = 40%

Therefore, Nancy earned a total return of 48%. Her dividend yield was 6% and her capital gains yield was 40%.

A major advantage of network advertising is the simplification of the media buying process.

The major advantage of network advertising is the simplification of the media buying process. With network advertising, a contractual agreement is made across multiple TV stations to preempt airtime during specific times for advertising. This simplifies the process because instead of having to negotiate with individual TV stations for airtime, advertisers can work with a network to reach a broader audience.

This can save advertisers time and money as they don't have to research individual stations and negotiate with each one separately. Additionally, network advertising often offers discounts and bonuses for advertisers who commit to a certain amount of airtime, further simplifying the process and potentially reducing costs. Overall, network advertising provides a streamlined approach to media buying for advertisers.

To know more about advertising, here

brainly.com/question/3163475

#SPJ1

The increased demand for beauty products containing activated charcoal in South Africa will lead to a shift in the market for activated charcoal, as the demand for the ingredient increases.

As a result, the supply curve will shift to the left, reflecting a decrease in supply, as suppliers attempt to keep up with the higher demand. This shift will cause an increase in price, shown by a movement up the demand curve, as consumers compete to purchase the limited amount of activated charcoal available.

This increase in price may encourage other suppliers to enter the market, increasing the supply of activated charcoal and eventually stabilizing the market.

[Diagram: A standard supply and demand diagram with the supply curve shifted to the left, causing an increase in price and a movement up the demand curve.]

learn more about demand: https://brainly.com/question/1245771

#SPJ1

The Choice including risk and uncertainty is Expected utility. It is a theory in economics that estimates the utility of an action when the outcome is uncertain.

Hence, the correct answer is option 2. . Expected utility.

Risk is the idea of future uncertainty about departure from projected earnings or outcome. Risk is a measure of how much uncertainty a potential investor is prepared to accept in exchange for a potential return on their investment.

The future viability of businesses may be threatened by interest rates, currency rates, a recession, inflation, taxation, and shifts in demand and supply. Following, we examine three of the most important economic risk factors and how they may affect enterprises.

To know more about Risk visit:

https://brainly.com/question/17284407

#SPJ1

The 11 topics include: Globalization, Strategic HRD and Talent Management, Electronic mobile and social learning, Management and leadership development, Performance counseling, Career and Performance management, Proactive learning needs identification, Learning design, Evaluation of training, Employment equity and diversity training and Learning organization.

Globalization is companies are forced to approach their business activities with an more external focus. Strategy drives execution and that is essentially the relationship between talent management and human resources management. Talent management strategy informs and dictates the decisions and actions taken by the human resources department and its individual team members within their roles. Leadership and management development are about enabling the future governance and stewardship of the organization. Therefore organizations need to forge their own agenda, and dictate fitting values, structure, program content, measurements and processes. Performance Counseling refers to the help provided by a manager to his subordinates in objectively analyzing their performance.

The role of the HRD professional includes planning formal and. informal career development strategies, providing coaching and mentoring. training to organization leaders and employees, and selecting and obtain- ing technological resources to manage these processes. Well-designed career. Learning Design is the framework that supports learning experiences. It refers to deliberate choices about what, when, where and how to teach.

Training evaluation is the systematic process of collecting information and using that information to improve your training. DEI training supports employees in understanding how best to work with other people. A learning organization can be defined as any organization that prioritizes personal and professional growth through knowledge transfer.

Learn more about evaluation, here:

https://brainly.com/question/20067491

#SPJ1

Business intelligence (BI) can be employed to provide assistance to SpaceX's 3D printing procedure in several ways:

Quality regulation: BI tools could facilitate the monitoring of the quality of 3D-printed parts, recognize errors anddefects, plus detect areas for advancement. By exploring data from the 3D printing step, SpaceX may discover structures and trends that hint towards potential troubles with both the design as well as fabrication process, allowing them to take corresponding adjustments.

Cost enhancement: BI tools might be implemented to investigatethe cost of 3D printing and pinpoint sections where price savings can be accomplished. For example, by examining information concerning material usage, labor costs, and equipment efficacy, SpaceX will be able to minimize expenditures while retaining greatness.

Process streamlining: BI tools may be exploited to optimize the 3D printing method by discovering hurdles, problems, or opportunities for betterment. For example, by studying data on utilization of machines and printing rate, SpaceX will recognize openings to escalate proficiency and reduce printing time.

Predictive maintenance: BI instruments could promote surveillance of health of 3D printers and anticipate when upkeep or renovations are needed. By evaluating data regarding functioning of devices and maintenance history, SpaceX would be capable of foreseeing repair needs  and arrange mending or substitution ahead of time, curtailing downtimes and heightening machine operability.

Read more on business intelligence here:

https://brainly.com/question/30465461

#SPJ1

Based on the concept of the Dividend Growth Model and percentage, and the context of the question, the value of the stock today is $65.

Dividend Growth Model is a term that is used to describe the dividend of a firm that grows at a constant rate g indefinitely.

Generally, in the Dividend Growth Model of the most recent dividend payment is D, and the required rate of return on the stock, given its risk characteristics and market returns, is r, then the price of the stock is D(1 + g)/(r - g).

Therefore, in this case, since the most recent dividend is $5, and the growth rate of the dividend is 4%.

And the required rate of return is 12%.

Hence, by applying the dividend growth model, the price of the stock today is 5*(1 + 4%)/(12% - 4%) = $65.

Learn more about the Dividend Growth Model here: https://brainly.com/question/31476143

#SPJ1

To construct a pro forma statement that outlines the annual cash flows generated on the Smart Help project, one must execute the following directions:

First, calculate the yearly incomes by multiplying the anticipated unit sales with the likely cost per each year.

Second, compute the annualized variable costs by calculating the predicted unit sales multiplied by the average expenses incurred per unit throughout each year.

Third, tally the annual sums of the set prices and the varying costs by combining the yearly fixed outlays with the regular variation payments for every year.

Fourth, work out the yearly operating profits (EBIT) by subtracting the overall annual disbursements from the aggregated revenues each year.

Fifth, figure out the yearly levies by multiplying the standard yearly running income with the corporate tax rate (35%)  for every year.

Sixth, calculate the net revenue yearly by taking away the taxes paid in any particular year from the yearly standing profit.

Seventh, determine the depreciation as per MACRS rates by expanding the price of apparatus by the respective MACRS rates during each year.

Eighth, find out the yearly cash flow generated from operations by totaling up the total after-tax income together with the annual depreciation for each successive year.

Ninth, ascertain the difference in net working capital by initializing an investment at the commencement of Year 0 and then, multiplying the amounts earned for each subsequent year by 6%.

Lastly, speculation the yearly free cash flow by deducting the alteration in effective fiscal capital from the overall annual cash flow obtained from operation for yearly instances.

Bear in mind that the first instance of depreciation is present in Year 0 itself. Whereas, in the final year - add both the salvage value ($5.5 million) plus the restoration of net working capital to the originated free cash flow.

By following all these specific quantities, you can craft a demonstrative analysis that offers insight into the complete life cycle accounting of the annual free cash flow amassed by the Smart Help project.

Read more about feasibility report here:

https://brainly.com/question/14842003

#SPJ1

Answer: Equilibrium price is P = 80 and the equilibrium quantity is Q = 20

Explanation:

To calculate the equilibrium price and quantity, we can follow these steps:

Set the demand equation equal to the supply equation:

200 - 6Q = 40 + 2Q

Simplify by adding 6Q to both sides and subtracting 40 from both sides:

160 = 8Q

Solve for Q by dividing both sides by 8:

Q = 20

Substitute Q = 20 into either the demand or supply equation to find the equilibrium price:

P = 200 - 6(20) = 80

or

P = 40 + 2(20) = 80

So the equilibrium price is P = 80 and the equilibrium quantity is Q = 20.

To illustrate this on a graph, we can plot the demand and supply curves on the same graph and look for the point where they intersect. The vertical axis represents price (P) and the horizontal axis represents quantity (Q). At the point where the demand and supply curves intersect, we have the equilibrium price and quantity.

The inventory turnover ratio measures how quickly a company sells its inventory. A higher ratio indicates better inventory management and potentially higher profits. A lower ratio may suggest poor sales or overstocking.

The efficiency of a company's inventory management is measured through the inventory turnover ratio. The calculation reveals how many times during a given period inventory was sold and replenished.

A high inventory turnover ratio demonstrates speedy sales, which signifies advanced inventory management that has potential to increase profits.

Conversely, a low inventory turnover ratio may imply dismal sales or excessive inventory which leads to elevated holding costs as well as diminished profitability.

Read more about turnover here:

https://brainly.com/question/31449130

#SPJ1

One of the primary reasons countries trade with each other is to access products and resources that they cannot produce themselves. Every country has its own set of resources, skills, and technologies that can be used to produce goods and services.

By trading with other countries, each nation can benefit from access to a wider range of products  services and resources, helping them to improve their overall standard of living.

Additionally, trading with other countries allows countries to sell goods and services that they may have in excess, creating new markets for their products and resources increasing their economic activity. This not only benefits individual businesses but also stimulates economic growth on a national level.

Overall, trade between countries allows each nation to specialize in producing and exporting goods and services that they are efficient in, while importing those that they are less efficient resources in producing.

Learn more about countries trade here

https://brainly.com/question/27906701

#SPJ1

The balance of the VISA Credit Card account after the credit card payment is recorded is $0.00. This is because the payment of $800.00 was recorded, thus bringing the balance down to zero.

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. A credit card is different from a debit card, which is linked to the cardholder's bank account, and money is withdrawn from the account to pay for goods and services. Credit cards are also different from charge cards, which require the balance to be paid in full each month.

To learn more about Credit Card
https://brainly.com/question/28913892
#SPJ1

Complete Question:
EM6.11 Pay Credit Card
Mookie the Beagle Concierge makes a payment on the VISA credit card on 01/31/2023 in the amount of $800.
Required:
To record the payment on the VISA credit card:
From the Navigation Bar, select Expenses > select Expenses tab
From the New transaction drop-down menu, select Pay down credit card
For Which credit card did you pay?, select 2100 VISA Credit Card
For How much did you pay?, enter 800.00
For Date of payment, enter 01/31/2023
For What did you use to make this payment?, select 1001 Checking
Select Save and close
What is the balance of the VISA Credit Card account after the credit card payment is recorded?
Note: Answer this question in the table shown below. Round your answer to the nearest dollar amount.

A communication barrier is anything that prevents one from receiving and comprehending messages sent to another to express ideas, thoughts, or any other type of information.

These many communication barriers obstruct or interfere with the message that someone is attempting to transmit. Communication barriers prohibit us from correctly receiving and accepting the messages used by others to transmit their information, thoughts, and ideas.

Communication difficulties include information overload, selective perceptions, workplace gossip, semantics, gender disparities, and so on. Communication in our daily lives helps us develop connections by allowing us to share our experiences and needs, as well as connect with others.

To learn more about communication, click here.

https://brainly.com/question/11863878

#SPJ1

One way for a entrepreneur to decrease risk is by creating strong business strategy.

Entrepreneurs are valuable resources who power their businesses. They take their large responsibilities seriously and work hard to fulfil them. For an entrepreneur, managing a business, its staff, and its various departments is not a simple task. Since they are in a leadership position, they must handle the worst scenario with caution to protect the reputation of their business.

Entrepreneurs take risks to compete in the market because they are concerned about their position there and sincerely want to hold that position. Leaders won't be able to compete in the market or win the race if they don't take chances.

Learn more about how entrepreneurs reduce risk here:

https://brainly.com/question/29544473

#SPJ1

Six values in codes of ethics, including professionalism, advocacy, moral standards, clients' interests, competence, and relationship, they note, "transcend national boundaries" (Taylor & Yang 2014:549).

Advocacy, honesty, expertise, independence, loyalty, and fairness are among the key traits and attributes of a public relations professional that are outlined in the public relations code of ethics. Honesty: Giving the people information that is factual and true – the cornerstone of gaining their trust.

In order for people to make informed judgments, advocacy involves providing all pertinent information, opinions from various groups, and/or individuals. Building relationships and gaining trust need ethical performance of PR activities.

To learn more about Advocacy, click here.

https://brainly.com/question/31316893

#SPJ1