Pierce wishes to purchase a municipal bond with a par value of $500 from Chattahoochee County, and he is trying to decide which broker he should employ to purchase the bond. Broker A charges a 3.1% commission on the market value of each bond sold. Broker B charges a flat $24 for each bond sold. If the bond has a market rate of 88.754, which broker will give Pierce the better deal, and by how much?
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He should take the option one of sales commission of 3.1% on each bond. If he takes the 2nd option, he is required to pay 24$ per bond. But if he takes the ist option, he is required to pay 15.5$ per bond. 88.754 is the market rate. Total investment is of 500$. Multiply the commission rate with the amount and you get 15.5 $. There is a difference of 8.5 dollars between the two options.
The broker will give Pierce the better deal, and by Broker A’s commission will be $10.24 less than Broker B’s.
What is the deal about?
In the question above, the municipal bond with a par value = $500
To find the market value of the bond, it will be:
= x 500
= 443.77
Note that the Commission rate charged by broker A = 3.1%
Therefore, the Commission of broker A will be = x 443.77
= $13.757
The Commission of broker B = $24
Note also that the difference between the commission of broker A and broker B will be:
= 24 - 13.756
= $10.24
Therefore, looking at the above, Broker A's commission will be $10.24 and thus it is less then Broker B's.
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Related Questions
A producer in a monopoly will charge _____ price for jeans than a jeans producer in a competitive market.a higher a lower the same
The ____ section of the project scope document is where the contractor or project team can state and clarify exactly what is included in the work scope and provide an opportunity to reconsider items that are not stated but that the customer may have forgotten to include in her requirements or RFP.
"What is the assessment of the external environment? What are the critical issues facing the business? Can the business execute the strategy?" According to Bossidy and Charan, a ______ should address these some of these questions.
When assessing the creditworthiness of new entrepreneurs, lending institutions review the “Five C’s”. The ability of the entrepreneur to repay borrowed funds is known as:
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Answer:
Developing research plan
Explanation:
This is the stage where you plan all you're set to achieve in the study. You itemize likely constraints you're to face in the field and how to tackle them, how you intend to collect your data, your intended respondents and everything needed to make the research process a success.
Final answer:
The research design stage in the marketing research approach includes determining the constraints on activity, necessary data, and data collection methods.
Explanation:
The constraints on the activity, the data needed for decisions, and how to collect data are all determined in the research design step of the marketing research approach. This stage involves planning how the research is going to be conducted. During this phase, researchers identify the type of data needed, how it would be collected, and the parameters within which the study would be executed (constraints). For instance, if a company is looking to understand consumer behavior toward a new product, it might decide to use surveys, interviews, or observational studies as collection methods and seek data on purchasing habits, consumer opinions, and demographic information. This plan provides a framework for the study, ensuring the collected data effectively addresses the research question.
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If Breyer company bought inventory fob shipping point from cellar company for $4,000 cash, including shipping charges. The company that should include these goods in its December 31 inventory is: Breyer should include the 4,000 in its inventory
Breyer company should include the amount of $4,000 which is the amount paid in cash for purchasing or buying from Cellar company in its December 31 inventory.
Reason been that Breyer company has already paid for the goods including the cost of shipping the goods.
Even though the goods were not delivered to Breyer before December 31 but till January 3, Breyer has the right to include the amount of $4,000 in its inventory because the goods is no longer in the seller who is Cellar company possession again and because the goods has been paid for .
Inconclusion if Breyer company bought inventory fob shipping point from cellar company for $4,000 cash, including shipping charges. The company that should include these goods in its December 31 inventory is: Breyer should include the 4,000 in its inventory.
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Final answer:
The inventory should be included in the December 31 inventory of Breyer Company due to the terms of the transaction being FOB shipping point, which signifies that the ownership of goods transfers to the buyer once the goods are shipped.
Explanation:
The inventory should be included in the December 31 inventory of Breyer Company. This is due to the mention that the purchase was made FOB shipping point. FOB stands for Free On Board, which is a term in commercial law. FOB shipping point signifies that the ownership of goods is transferred to the buyer (Breyer Company in this case) once the seller (Cellar Company) ships the goods. Therefore, even though the goods were still on the truck owned by Common Carrier Company and not yet arrived, they should be included in the inventory of Breyer Company on December 31 because it became their responsibility once the goods were shipped.
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Answers
Answer: unemployment rate and the inflation rate.
Explanation:
The Phillips curve shows the relationship that exists between inflation and unemployment rates. The short-run Phillips curve looks like an L-shape and it reflects the inverse relationship between the two variables i.e unemployment and inflation.
As unemployment rates rises, inflation reduces and as unemployment rates reduces, inflation increases. A reduction in the aggregate supply will lead to a rightward shift the short run Phillips Curve.
Final answer:
The short-run Phillips curve shows the inverse relationship in economics between the rates of inflation and unemployment. When inflation rises, so does unemployment, and vice versa. This relationship is typically observed in short-term scenarios, as long-term factors can affect this balance.
Explanation:
The short-run Phillips curve in economics demonstrates an inverse relationship between the rate of inflation and the rate of unemployment. To put it simply, as the rate of inflation increases, the rate of unemployment decreases, and vice versa. This relationship is largely observed in short-term scenarios because, in the long run, other economic factors come into play that can tilt this balance.
For example, if a country experiences a higher rate of inflation, businesses are more likely to make profits, which can then be used to hire more employees, leading to a decrease in the unemployment rate. Conversely, when the rate of inflation decreases, businesses may cut jobs resulting in an increased unemployment rate.
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b. high efficiency and low effectiveness
c. low efficiency and high effectiveness
d. low efficiency and low effectiveness
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Answer:
The answer is: C) Low efficiency and high effectiveness.
Explanation:
The company Kiddy Toys made a great product (High effectivness) but they couldn´t produce it a reasonable cost, so it was very expensive to sell (Low efficiency). As a result they had a great toy that very few customers could afford to buy.
Sometimes a company is able to manufacture a great product, they had a terrific idea that lots of people will like and want. The problem is that if they can not manufacture that product at a low cost then they will never have high sales volumes. This is the very exact reason why most toys nowadays are created in the US but mass produced in China.
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Americans' biggest expense is on housing. Low income families actually exhaust more proportionately on their shelter than high income families. Generally speaking, the average American family spends roughly one third of their annual budget on securing a roof over their heads.
Divisibility, scarcity, and stability of value
Durability, portability, and standard
Medium, scarcity, and value
i think its the first right am i right
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I've taken this on my quiz before the answer is Acceptability, divisibility, and portability