Define the term the equal-payment-series compound-amount factor?

Q: The contract rate is above the market rate. The contract rate is equal to the market rate.

A: The correct answer is option (a) The contract rate is above the market rate.

Q: Explain the law of one price in the perspective of the following: a) Purchasing power parity b)…

A: Law of One Price: It is stated in the law of one price that, in the absence of friction between…

Q: What are the special forms of payment? Give examples for each.

A: Unless otherwise stated, the obligation to deliver begins when the contract is signed. The creditor…

Q: What are the Uneven-Payment Series?

A: What are the Uneven-Payment Series.

Q: What is the Compound-Amount Factor?

A: Compound amount factors are the factors by which the interest for a loan is calculated which is…

Q: Explain the sequential payout tranche structure?

A: Sequential payout tranche structure In this type of structure interest payments are received by…

Q: State the difference between secondary market and primary market.

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: Define the term Equal-Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: Differentiate between the accumulated benefit obligation and the projected benefit obligation.

A: ABO (Accumulated benefit obligation) and PBO (Projected benefit obligation) are similar in most of…

Q: what is fixed-price contract, and what are the benfit of chosing it

A: A contract where the price is fixed as negotiated by the parties is known as a Fixed Price Contract.…

Q: Describe the Mixed-Dollar Analysis?

A: Mixed-Dollar Analysis is commonly known as a currency basket that consists of different currencies…

Q: Discuss the term ‘co-payment

A: Co-payment is a very important term in the field of health insurance.

Q: What are Equal-Payment Series?

A: Equal payment refers to the equal net periodic cash flows that an investor receives during the life…

Q: Define each of the following terms:g. Lessee’s analysis; lessor’s analysis

A: The lessee's analysis how leasing an asset is less expensive than the purchasing of the asset.

Q: Define the term equal-payment-series sinking-fund factor?

A: Equal payment series sinking fund: In this method of investing mode, the goal is determine the equal…

Q: Define the term Mixed-Dollar Analysis?

A:

Q: Define the term Lump-Sum Purchases.

A: Lump-sum:  A lump-sum amount is defined as a single complete sum of money. A lump-sum investment is…

Q: What would be the difference between the CMO with and without the accrual class?

A: A collateral mortgage obligation is a financial instrument that is backed up by the mortgage to be…

Q: Explain the difference between deferrals and accruals and give two examples from each.

A: The adjustment entries are prepared to adjust the revenue and expenses of the current period.

Q: Define Monetary/non-monetary method

A: Monetary and Non-Monetary Method Monetary Assets/Liabilities - Assets/Liabilities whose value…

Q: The term of Final Payment. Effects of Final Payment.

A: A contract is made so that the work can be done legally and both are bond to fulfill their portion…

Q: Define semiannual compounding

A: Compounding is the interest charged on interest. When any investment is made for certain years, the…

Q: Interest cost is calculated by multiplying the______by the ______?

A: Interest cost is calculated by multiplying the  Principle amount by one plus the annual interest…

Q: Define the Equal-Payment Series?

A: Answer: The main goal of this investment method is to calculate the present value of equivalent…

Q: How can economic equivalence at the period o be established?

A: The question is based on the concept of economic equivalence.

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: How can we establish economic equivalence by selecting the base period?

A: Answer: There is economic equivalence between cash flows which have the same economic influence and…

Q: What is cross-exchange rate? Give an example.

A: The exchange rate expresses the value of a currency in terms of another currency. It determines the…

Q: What is a functional currency? What is the Intercst Coverage (Times Intcrest Earned) Ratio?

A:

Q: Define net pay.

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: Describe situations in which you have an integration of future lump sumsand streams of equal and…

A: An annuity may be a set of similar to cash streams, which are settled at concurred interims and…

Q: What is the future worth of a uniform series payment?

A: The future worth is the value of an asset at a predefined future date which increases at a specific…

Q: Does Compounding Occur at a Different Rate than that at which payments are made? How?

A: Answer: The answer is no, because the compounding takes place at the same rate as that at which…

Q: Define the term Uneven-Payment Series?

A: Payment series: It can be defined as the sequential payments being made to another party over a…

Q: Define times-interest-earned (TIE) ratio

A: The number of times can a business pays off its interest obligation with the current earnings is…

Q: . Which of the following may not be equal to the contract rate of interest? a. stated rate b.…

A: Contract rate of interest is the defined rate of interest on bonds, notes or loan.

Q: Discuss Mixed-Dollar Analysis?

A: Consider the case where some components of the cash flow are expressed in constant (or current)…

Q: Explain different types of Annuity and perpetuity concept with appropriate examples.

A: Annuities are defined as the contracts, which are issued as well as distributed or sold through the…

Q: Give examples of the Equal Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: Suppose that all possible types of perpetuities (differentiated in payment starting periods and…

A: A perpetual annuity is a policy that you pay indefinitely. In finance, eternity is a constant flow…

Q: difference between Trade Payable and Other Payable with relevant examples

A: Trade Payable and Other Payable are current liabilities of a business to be payable within one…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…