Answer:
False
Explanation:
To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.
The market rate of the bond may or may not be equal to the contract rate. If the bond was sold at a premium, the market rate is lower than the contract rate. If the bond is sold at a discount, the market rate will be higher than the contract rate.
Answer:
1. $47,255
2. Dr Cost of goods sold account $1,316
Cr Inventory account $1,316
Explanation:
Please find attached detailed solution to the above questions and answers.
Answer:
Portfolio weight - Stock A = 46.473%
Portfolio weight - Stock B = 53.527%
Explanation:
The weightage of portfolio refers to the amount of investment in each stock in the portfolio expressed as a percentage of total investment in the portfolio. The weightage of portfolio can be calculated by as follows,
Portfolio weightage = Investment in Stock A / Total Investment in Portfolio +
Investment in Stock B / Total Investment in Portfolio + ... +
Investment in Stock N / Total Investment in Portfolio
Total investment in portfolio = 190 * 95 + 165 * 126 = 38840
Investment in Stock A = 190 * 95 = 18050
Investment in Stock B = 165 * 126 = 20790
Portfolio weight - Stock A = 18050 / 38840 = 46.473%
Portfolio weight - Stock B = 20790 / 38840 =53.527%
A required reserve ratio of 7 percent gives rise to a simple deposit multiplier of 14.29.
<h3>What is reserve ratio?</h3>
The reserve ratio is the percentage of reservable liabilities which commercial banks must keep rather than lend or invest. This is a requirement set by the country's central bank, which is the Federal Reserve in the United States. It is also referred to as the cash reserve ratio.
Some key points related to reserve ratio are-
- The reserve requirement is the minimum amount of deposits that a bank must hold, and it is sometimes used interchangeably with the reserve ratio.
- Regulation D of the Federal Reserve Board establishes the reserve ratio.
- Regulation D established uniform reserve requirements with all deposit accounts with transaction accounts and necessitates banks to provide the Federal Reserve with regular reports.
- Suppose the Federal Reserve determined that the reserve ratio should be 11%. This means that if a bank has $1 billion in deposits, it must keep $110 million in reserve ($1 billion x.11 = $110 million).
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