One of the Deficiencies of the Bootstrap Method Is That $d ( t )$

question 10

Multiple Choice

One of the deficiencies of the bootstrap method is that it only returns discount functions that are on discrete dates.One approach to address this problem for cashflows that do not fall on these dates is to split them into allocations to near dates for which discount functions are available.Suppose we have discount functions $d ( t )$ ,where $d ( 1 ) = 0.95$ and $d ( 2 ) = 0.90$ .Assuming continuous compounding,how will a cashflow at $t = 1.5$ years of $100 be allocated to $t = 1$ and $t = 2$ years such that the present value and duration of cashflow remains the same? Assume that the forward rate between 1 and 2 years is constant.The allocation of cashflows is:

• A)$48.63 at one year and $51.33 at two years.
• B)$47.33 at one year and $52.63 at two years.
• C)$46.19 at one year and $53.87 at two years.
• D)$50 at one year and $50 at two years.

Identify Maslow's hierarchy of needs and its application to employee motivation.

Understand the principles of equity theory and its application in the workplace.

Comprehend the components of VIE theory and its relevance to motivation.

Explain goal theory and how goal setting impacts motivation.

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Definitions:

Factory Wages Payable

An account representing the amounts owed to manufacturing personnel for wages that have been earned but not yet paid.

Work in Process Inventory

Goods in manufacturing that are partially completed; not yet ready for sale but more advanced than raw materials.

Direct Material Usage

The quantity of raw materials or supplies consumed in the production of goods or services.

Raw Materials Inventory

The total cost of all components and materials stored that are intended to be used in production.