Bootstrapping involves
A. Calculating the yield on a bond
B. Working from short maturity instruments to longer maturity instruments determining zero rates at each step
C. Working from long maturity instruments to shorter maturity instruments determining zero rates at each step
D. The calculation of par yields
B
Bootstrapping is a way of constructing the zero coupon yield curve from coupon-bearing bonds. It involves working from the shortest maturity bond to progressively longer maturity bonds making sure that the calculated zero coupon yield curve is consistent with the market prices of the instruments.
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Which of the following is the journal entry made by a company using perpetual inventory system to record the purchase of inventory?
a. accounts payable inventory b. inventory accounts payable c. purchases inventory d. inventory purchases e. purchases accounts payable
Vertical coordination can facilitate stronger customer-seller ties but at the same time may increase the risk to the customer's and supplier's specific investments. What are specific investments and why are they risky?
What will be an ideal response?