Explain the technique and the purpose of building bond ladders
What will be an ideal response?
Answer: Investors build bond ladders by purchasing roughly equal amounts of bonds with staggered maturities ranging from short-term to some long-term investment horizon. As the short-term bonds mature, they are replaced with long term bonds. In this way, the investor is protected from changes in long-term interest rates while enjoying the typically higher yields on long-term bonds. The technique is essentially a form of dollar cost averaging.
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During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $4,000. The journal entry to record this requisition would include a debit to Manufacturing Overhead of:
A. $61,000 B. $0 C. $4,000 D. $65,000
Compliance with Sarbanes-Oxley does not mean that the manager has met all of his or her ethical responsibilities.
Answer the following statement true (T) or false (F)
On January 1, Alistair Manufacturing had a beginning balance in Work-in-Process Inventory of $164,000 and a beginning balance in Finished Goods Inventory of $25,000
During the year, Alistair incurred manufacturing costs of $202,000. During the year, the following transactions occurred: Job C-62 was completed for a total cost of $140,000 and was sold for $157,000. Job C-63 was completed for a total cost of $181,000 and was sold for $212,000. Job C-64 was completed for a total cost $82,000 but was not sold as of year-end. The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year-end. What was the amount of gross profit reported by Alistair at the end of the year? A) $48,000 B) $72,000 C) $17,000 D) $31,000
How can a company’s payroll information contained in financial reports assist in corporate planning?
What will be an ideal response?