Accounting and Finance -Theory Questions
Briefly explain the relationship between the market rate of interest and the value of a bond.
value of Bond = CF * PVF(r%, n)
As the Market Rate of Int Increases, PVF will be decreased . Hence Market Value of Bond will also decreased.
Thus there is inverse relation between Market rate of Int and Value of Bond
Accounting and Finance -Theory Questions Briefly explain the relationship between the market rate of interest and...
Accounting and Finance - Theory Questions Discuss the relation between risk and return in the context of business finance and investment portfolios.
Briefly answer the following questions; 1. Why when the goods market is at equilibrium, the money market also must be at equilibrium? 2. Elaborate the concept of financial wealth according to Keynes. 3. Explain the relationship between the interest rate and the price of bond. 4. What is a capital loss and a capital gain and how this concept can be used to speculate the future interest rate?
Briefly answer the following questions; 1. Why when the goods market is at equilibrium, the money market also must be at equilibrium? 2. Elaborate the concept of financial wealth according to Keynes. 3. Explain the relationship between the interest rate and the price of bond. 4. What is a capital loss and a capital gain and how this concept can be used to speculate the future interest rate?
Describe and explain the relationship between expected inflation rates in two countries and their interest rate differential according to the PPP theory.
Explain Interest Rate Market Segmentation Theory and give an example of it?
1. What is the relationship between real interest rate, nominal interest rate and inflation rate? 2. What are the reasons for very high nominal interest rates in the 1980s? 3. Someone buys a 5 year government treasury bond at $P t a. Can the price be above face value? Why? b. Can the price be below face value? Why? c. If he/she wants to sell it after 2 years, will he/she makes a positive rate of return or negative rate...
Can anyone help me solve the following Accounting Theory questions. 1. Relationship between earnings announcement and share price movement is inversely related to the company’s size. Discuss why. 2. What are some of the arguments for historic cost accounting?
Please answer all questions
2. a) Briefly explain the concepts on which the Debye-Huckel's theory for ionic solutions is based. (7 Marks). b) Briefly explain the relationship between the activity coefficient and the ionic strength of an electrolyte as seen in the context of the Deybe-Huckel limiting law. (5 Marks) ffers from the limiting law. (6 Marks) d) Calculate activity a 0.250 mol kg CaCl2 solution at 35 degree C. (Let A-0.509,7 Marks)
2. a) Briefly explain the concepts on...
*Briefly describe 3 Key Principles about the relationship between bonds and interest rates as it relates to interest rate sensitivity:
Describe the contingency theory of management accounting and discuss the relationship between various contingent factors and features of the management accounting system.