Answer:
4,000
Explanation:
Break even quantity = fixed cost / price - variable cost per unit
Total revenue = price x quantity sold
$2 x 5,500 = $11,000
Variable cost = 0.2 x $11,000 = $2,200
Variable cost per unit = $2,200 / 5500 = $0.4
$6,400 / $2 - $0.4 = 4,000
James sells blank aluminum cans for soda manufacturers to fill and label. James would be classified as a(n):
Answer: E. industrial products salesperson.
Explanation:
Blank aluminium is used in the production of many goods such as cars and planes and as such is yet to be converted for final use for the consumer which makes it an industrial good to be sold to industries.
James as a sales person for blank aluminium will therefore qualify as an industrial products salesperson.
"In 2020, a customer buys a 3 3/4% U.S. Government bond maturing in 2029 at 104-16. The customer elects to amortize the bond premium for tax purposes. If the bond is sold after 2 years, its cost basis at that time is:"
Answer:
carrying value after 2 years = $967.64
Explanation:
the journal entry to record the purchase of the bond:
Dr Investment in bonds 1,000
Dr Premium on investment in bonds 41.60
Cr Cash 1,041.60
Assuming a straight line amortization, the yearly amortization = $41.60 / 9 years = $4.62 per year
carrying value at moment of purchase = $958.40
carrying value after 1 year = $963.02
carrying value after 2 years = $967.64
A registered representative completes the firm's standard options worksheet for a customer to illustrate the potential profits and risks of a covered call writing strategy. At or prior to sending the worksheet to the customer, which statement is true?
Answer:
Explanation:
The customer must receive the latest Option Disclosure Document. Prior to the first use, the option worksheet must have been approved by the firm's designated Registered Option Principal
The option disclosure document (ODD) is a publication issued by the Options Clearing Corporation (OCC) that serves as an important guide for options traders. The detailed document, formally titled Characteristics & Risks of Standardized Options, is extremely necessary for beginner options traders.
You have $130,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 14.6 percent. Stock X has an expected return of 12.8 percent and a beta of 1.30, and Stock Y has an expected return of 7.8 percent and a beta of 1.05. a. How much money will you invest in Stock Y? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) b. What is the beta of your portfolio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)
Answer:
Let X be the amount invested in stock A
Let 1-X be the amount invested in stock B
Expected rate = (Required rate of X* X) + (Required ratebof Y * (1-X))
0.146 = (0.128 * X) + (0.078 * (1-X))
0.146 = 0.128X + 0.078 - 0.078X
0.146 - 0.078 = 0.128X - 0.078X
X = 0.068/0.05
X = 1.36
Amount to be invested in Stick X = $130,000 * 1.36
= $176,000
Amount to be invested in Stock Y = (1-X) * Available amount
= (1-1.36) * $130,000
= $46,800
Therefore, the amount to be invested in Stick Y = -$46,800
Calculation of the portfolio beta
bp = w1b1 + w2b2 + ........ + wnbn
bp = (1.36*1.3) + ((-0.36) * 1.05)
bp = 1.768 - 0.378
bp = 1.29
Therefore, the portfolio beta is 1.39
Carter Motor Company, claims that its new sedan, the Libra, will average better than 23 miles per gallon in the city. Assuming that a hypothesis test of the claim has been conducted and that the conclusion is to reject the null hypothesis, state the conclusion:__________.
a. There is sufficient evidence to support the claim that the mean is less than 23 miles per gallon.
b. There is not sufficient evidence to support the claim that the mean is less than 23 miles per gallon.
c. There is sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
d. There is not sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
Answer: c. There is sufficient evidence to support the claim that the mean is greater than 23 miles per gallon.
Explanation:
When doing a research, there are 2 Hypothesis one must come up with which are the Null Hypothesis and the Alternative hypothesis.
The Null Hypothesis should state that there is no relationship between the variables which in this case would mean that new sedan, the Libra, will not average better than 23 miles per gallon in the city.
The Alternative Hypothesis on the other hand affirms the belief of the researcher which in this case is that new sedan, the Libra, will average better than 23 miles per gallon in the city.
As the null hypothesis was rejected by the evidence, it means that indeed the Libra mean is greater than 23 miles per gallon.
Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will
Answer: decrease
Explanation:
Demand is the amount of product or service that a economic entity wants to buy at a certain price at a particular time period.
When the world price of steel falls substantially, the demand for labor among steel-producing firms in Pennsylvania will reduce. This is because as price reduces, producers will want to supply less steel thereby demand for labor will reduce.
A _____, identified by Michael Porter, helps organizations make their products and services distinct from their competitors.
Answer:
differentiation strategy
Explanation:
Differentiation of goods is the process by which a producer makes his goods different from that of competitors in a bid to attract customers and increase sales.
For example, a firm in the beauty industry can differentiate itself from other firms in the industry by claiming to make it products using only organic ingredients. This would attract customers because it would indicate that the company's product is more healthy
A negative cash flow to owners indicates that a firm has ________. Question 3 options: borrowed more money. sold additional shares of stock. incurred net losses and is facing financial distress. issued dividends while maintaining a constant number of outstanding shares of stock
Answer: Issued dividends while maintaining a constant number of outstanding shares of stock
Explanation:
A negative cashflow is meant to indicate that cash has left the company. If this is in relation to the owners then it either means that the company has repurchased shares or paid out dividends.
From the options, the correct answer would be that the company issued dividends while maintaining a constant number of outstanding shares of stock. This would be reflected in the Financing section of the Cashflow statement.
Mason’s Meows is a company that makes cat toys. The company sells 1200 toys per year. The firm incurs a fixed cost of $150 in labor each time it starts up the manufacturing process to begin a new batch of toys. Each toy costs Mason’s Meows $9 to produce. The company's accountant recommends using a holding cost equal to 20% of the cost of the toy, per year.
a) What is the optimal batch size, Q*? If the company uses batches of size Q*, how many times per year, on average, will it start up the manufacturing process?
b) After careful analysis, the inventory team at Mason's Meows realized that the per-unit production cost is smaller if the batch size is larger. In particular, the production cost is $9 per unit for batches of fewer than 400 units and $7.50 per unit for batches of 400 or more units. Now what is the optimal batch size?
Answer:
a. The optimal batch size, Q * is Economic order quantity (EOQ)
Annual demand = 1,200 toys
Cost of each toy =$9
Fixed cost starts up the manufacturing process (S) = $150/batch
Inventory carrying cost (H) = 20% of the cost of the toy, per year
Inventory carrying cost (H) = 20% *$9 per unit
Inventory carrying cost (H) = $1.80 per Toy per year
EOQ = Q* = √ (2 * Annual Demand *fixed processing cost/ Inventory carrying cost)
EOQ = √ (2 * 1,200 *$150 / $1.80)
EOQ = Q* = 447.21
EOQ = Q* = 447 toys
The optimal batch size is 447 toys
Number of orders per year, on average, if it will start up the manufacturing process
= Annual demand / EOQ
= 1,200 / 447
= 2.68 times per year
b. Annual demand = 1200 toys
Cost of each toy =$7.5 (assume that batch size is more than 400)
Fixed cost starts up the manufacturing process (S) = $150/batch
Inventory carrying cost (H) = 20% of the cost of the toy, per year
Inventory carrying cost (H) = 20% *$7.5 per unit
Inventory carrying cost (H) = $1.50 per Toy per year
EOQ = Q* = √ (2 * Annual Demand *fixed processing cost/ Inventory carrying cost)
EOQ = √ (2 * 1,200 *$150 / $1.50)
EOQ = Q* = 489.90
EOQ = Q* = 490 toys
The optimal batch size is 490 toys.
The selling and administrative expense budget of Gullette Corporation is based on the number of units sold, which are budgeted to be 3,700 units in April. The variable selling and administrative expense is $4.80 per unit. The budgeted fixed selling and administrative expense is $30,180 per month, which includes depreciation of $3,450. The remainder of the fixed selling and administrative expense represents current cash flows.Required:Prepare the selling and administrative expense budget for April.AprilBudgeted unit sales Variable selling and administrative expense per unit Variable selling and administrative expense Fixed selling and administrative expense Total selling and administrative expense Cash disbursements for selling and administrative expenses
Answer:
Gullette Corporation
Gullette Corporation
Selling and administrative expense budget for April:
April Budgeted unit sales = 3,700
Variable selling and administrative expense per unit = $4.80
Variable selling and administrative expense = $17,760
Fixed selling and administrative expense = $30,180
Total selling and administrative expense = $47,940
Less Depreciation expense = ($3,450)
Cash disbursements for selling and
administrative expenses $44,490
Explanation:
Data:
Budgeted units sales = 3,700
Variable selling and administrative expense = $4.80 per unit
Budgeted fixed selling and administrative expense = $30,180 per month
Depreciation in fixed expense = $3,450
Gullette Corporation
Selling and administrative expense budget for April:
April Budgeted unit sales = 3,700
Variable selling and administrative expense per unit = $4.80
Variable selling and administrative expense = $17,760
Fixed selling and administrative expense = $30,180
Total selling and administrative expense = $47,940
Less Depreciation expense = ($3,450)
Cash disbursements for selling and
administrative expenses $44,490
b) Under the budgetary process, Gullette Corporation prepares its selling and administrative expense budget to include the variable and fixed elements. The variable element of Gullette's selling and administrative expenses varies per unit with the volume of sales, while the fixed element remains relatively constant in total. The total cash disbursements for selling and administrative expenses do not include depreciation.
What assets would be least likely used to back a collateralized debt obligation (CDO)?
Answer:
Collateralized debt obligation (CDO) can be defined as a structured financial product that is backed by a pool of loans and some assets that are pooled together and divided into tranches and thereby sold to institutional investors.
Some assets that can used are treasury bills, corporate bonds, real estates, certificates of deposit, and cash.
Assets that cannot be used are assets that decline in value like electronics, food etc.
Write down a list of potential satisfiers in financial services and then a list of dissatisfiers. what would be the benefits to the financial institution of eliminating or reducing the dissatisfiers?
Answer:
Explanation:
Satisfiers are positive factors which influence work behavior. They are often addressed as "motivation givers"
List of satisfiers includes
Recognition
Promotion
Growth
Self growth
Achievements
Dissatisfiers on the other hand, are the negative factors that influence work behavior. They are called "hygene factors". Basically, they do not provide satisfaction.
Examples of dissatisfiers include
Company policies which frustrate employees
Working in unfavourable conditions
Poor salary
Not placing value on the employees
Too many bureaucracy.
Eliminating dissatisfiers brings decorum to a financial institution. It makes the institution utopian, so to say
Outsourcing and insurance are ways of __________ risk.
Answer:
Outsourcing and insurance are ways of transferring risk.
Explanation:
Outsourcing involves the practice of using an external supplier or contractor to provide a service or product even when the buyer (company) has the capacity to do same. It is also known as contract manufacturing.
It is more cost efficient for the business and is a another of transferring risk.
Insurance is a contract between a insurance company (insurer) and the insured where the former agrees to compensate the latter, for a fee, in case the insured suffers loss as a result of a specific risk.
Insurance is another way to transfer risk
Outsourcing and insurance are ways of transferring risk.
Which of the following statements about buying a franchise is most accurate?A) Franchisors are so closely regulated that there is virtually no chance for scams to succeed.B) Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.C) Franchise agreements are simple to evaluate, since federal law requires that all such agreements must be written in plain English with all fees and terms clearly explained.D) Buying a franchise is the simplest and least expensive way to set up a business, since the franchisor has already worked out all of the details for setting up and running the business.
Answer: B. Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market
Explanation:
A franchise is a method that has to do with the distribution of products or services which involves a franchisor, and a franchisee. A franchisee pays a royalty an initial fee in order to do business using the name of the franchisor.
Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.
suppose that the equilibrium orice of t-shirts increases and the equilibrium quanitiy of t-shorts decreases. this is best explained by
Answer: Supply of T-shirts decreasing
Explanation:
If the supply of T-shirts decreases, the equilibrium quantity of t-shirts being supplied to the market will decrease as well. Assuming that demand stays the same, the leftward shift of the supply curve will intersect with the demand curve at a higher equilibrium price.
This is simply because as the t-shirts are in short supply, people will be willing to pay more to have them as they are not as widespread as before.
The company has a target net income of $206,000. What is the required sales in dollars for the company to meet its target?
Complete Question:
Blue Spruce Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $240,000 (40% variable and 60% fixed), direct materials $514,000, direct labor $270,800, administrative expenses $280,000 (20% variable and 80% fixed), and manufacturing overhead $376,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
Requirement:
The company has a target net income of $206,000. What is the required sales in dollars for the company to meet its target?
Answer:
$2,747,200
Explanation:
We can calculate the target sales by using the following following formula:
Target Sales = (Fixed Cost + Target Net Income) / Contribution to Sales Ratio (Step1)
Here
Target Net Income is $206,000
Fixed Cost includes 60% of selling expenses $240,000 (100%), 80% of administrative expenses $280,000 (100%) and 30% of manufacturing overhead $376,000 (100%).
This means that:
Total Fixed Cost = 60% * $240,000 + 80% * $280,000 + 30% * $376,000
Fixed Cost = $144,000 + $224,000 + $112,800
Fixed Cost = $480,800
Contribution to Sales ration is 25%
By putting values in the above equation, we have:
Target Sales = ($480,800 + $206,000) / 25% = $2,747,200Step1: Find Contribution to Sales Ratio
As we know that:
Contribution to Sales Ratio = (Selling Price per Unit (Step2) - Variable Cost per Unit (Step3) ) / Selling Price per Unit
Here
Selling Price per unit is $16 per Unit
Variable Cost per Unit is $12 per Unit
Contribution Sales Ratio is 25%
By putting values, we have:
Contribution Sales Ratio = ($16 per Unit - $12 per Unit) / $16 per Unit
Contribution Sales Ratio = 25%
Step2: Find Selling Price Per Unit
Selling price per unit = Total sales / Total units = $1,600,000 / 100,000 Units
Selling price per unit = $16 per Unit
Step3: Find Variable Cost per unit
Here, the first thing that we would compute will be total variable cost and then we will calculate variable cost per unit.
Here
Total Variable Cost = (Selling expenses $240,000 * 40%) + (Direct Material Cost $514,000) + (Direct Labor Cost of $270,800) + (Administrative expenses of $280,000 * 20%) + (Manufacturing overhead $376,000 * 70%)
Total Variable Cost = ($240,000 * 40%) + ($514,000) + ($270,800) + ($280,000 * 20%) + ($376,000 * 70%)
= $96,000 + $514,000 + $270,800 + $56,000 + $263,200
Total Variable Cost = $1,200,000 for 100,000 Units
Variable Cost For single unit = $1,200,000 / 100,000 Units
Variable Cost per Unit = $12 per Unit
Which of the following ratios would be least useful in determining a company's ability to pay its expenses and liabilities?
A) Current ratio
B) Acid-test ratio
C) Price-earnings ratio
D) Times interest earned ratio
Answer: C) Price-earnings ratio
Explanation:
The Price - earnings ratio is used to calculate the company's share price to its earnings per share. It uses the market value of the stock and thus has the least correlation to the actual inner workings of the company.
The Current and Acid test ratios can be used to calculate if the company is able to cover its current liabilities given its current assets and its most liquid current assets respectively. The Times Interest ratio shows if the company is able to pay its debt payments with the funds available.
The odd one out is therefore the Price-Earnings ratio.
The ratio that least useful in determining a company's ability to pay its expenses and liabilities is the price-earnings ratio.
The following information is to be considered:
The Price-earnings ratio is the market ratio where it determined the market value of the stock with respect to the earnings.Also it compared the market price per share from the earning per share.Therefore we can conclude that The ratio that least useful in determining a company's ability to pay its expenses and liabilities is the price-earnings ratio.
Learn more: brainly.com/question/6201432
Four possibilities are equally likely and have payoffs of $2, $4, $6, and $10. The expected value is:
Answer:
Expected value is 5.5
Explanation:
Expected value = sum of X*P(x)
= 1/4*2 + 1/4*4 + 1/4*6 + 1/4*10
= 0.5 + 1.0 + 1.5 + 2 .5
= 5.5
tock has had returns of 16 percent, 23 percent, 15 percent, −11 percent, 30 percent, and −5 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
Answer: arithmetic Average Return =11.33%
Geometric Average Return=10.33%
Explanation:
Returns per year
Year 1 16%
year 2 23%
year 3 15
year 4 -11%
year 5 30 %
year 6 -5%
Total = 68%
Arithmetic Average = Total returns 0f ( year 1 -6) / number of years
= 68%/6 =11.33%
Geometric Average Return is given as
= ((1 + R1) × (1 + R2) × ... × (1 +Rn))(1/n) - 1
((1 + 16%) × (1 + (23%)) × (1 + 15%) x (1+ -11%) x (1+30%) x (1+ -5%))^1/6 - 1
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x (0.95)) ^1/6
((1.16 x 1.23 x 1.15 x 0.89 x 1.30 x 0.95)) ^1/6 -1
(1.8035073 )^1/6 - 1
= 1.10328 -1 = 0.10328 x 100 = 10.328% =10.33%
The management of Heider Corporation is considering dropping product J14V. Data from the company's accounting system appear below:
Sales: $980,000
Variable expenses: $394,000
Fixed manufacturing expenses: $376,000
Fixed selling and administrative expenses : $256,000
In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $245,000 of the fixed manufacturing expenses and $206,000 of the fixed selling and administrative expenses are avoidable if product J14V is discontinued. What would be the effect on the company's overall net operating income if product J14V were dropped?
Answer:
Overall net operating income would decrease by $135,000
Explanation:
Calculation for What would be the effect on the company's overall net operating income if product J14V were dropped
Keep J14V Drop J14VDifference
Sales$980,000 $ 0 $(980,000)
Variable expenses
$394,000 $0 $394,000
Contribution margin
$586,000 $0 $(586,000)
Fixed expenses:
Fixed manufacturingexpenses
$376,000 $131,000 $245,000
($376,000-$245,000=$131,000)
Fixed selling and administrative expenses
$256,000 $50,000 $206,000
($256,000-$206,000=$50,000)
Net operating income(loss)
$(46,000) $(181,000) $(135,000)
Net operating income would decline by $135,000
Therefore the Overall net operating income would decrease by $135,000.
I sell bottled water that costs me $1 to produce. I mark each bottle up by $2. What is my margin on price
Answer:
50%
Explanation:
To calculate the margin on price, you have to find the difference between the price of the good and the cost to produce it and the result is divided by the price of the product:
Margin=(2-1)/2
Margin=1/2
Margin=0.5 → 50%
According to this, your margin on price is 50%.
Streamlining the corporate e-procurement process within the organization’s supply chain helps control costs in all of the following ways except _________. Select one: a. reduces the number of employees needed to process purchasing b. reduces the procurement cycle time to order and receive items c. empowers suppliers to negotiate terms of service d. empowers an organization’s staff with product information needed to make intelligent decisions when procuring items
Answer: c. empowers suppliers to negotiate terms of service
Explanation
Streamlining the corporate e-procurement process within the organization’s supply chain helps control costs in all of the following ways except empowers suppliers to negotiate terms of service
Streamlining of business processes helps in increasing the organization's efficiency through the simplification of tasks, by reducing wastes and passing unnecessary steps.
You've been tasked with creating native advertising for your employer. Your job will most likely entail:
Answer:
Explanation:
Based on this main focus it seems that your job role in the company is Advertising Manager. That being the case your job will entail handling all of the company's advertising activities as well as guiding the staff members in order to develop creative and consistent advertising campaigns that are brand specific to the company in many different mediums. This is all done with the main goal of making as many people aware of the company and its products and hopefully drive up sales.
An office supply store open 5 days a week must determine the best inventory policy for boxes of copier paper. Weekly demand is nearly constant at 250 boxes and when orders are placed, then entire shipment arrives at once. The cost per box is $22 and the inventory holding cost is 30%. Orders are placed at a cost of $40 each, including preparation time and communication charges, and the lead time is 2 days. a. Find the optimal order quantity. b. What is the reorder point
Answer:
a. 295 boxes
b. 100 boxes
Explanation:
The level at which ordering and storage costs are at minimal is known as the optimal order quantity.
optimal order quantity = √(2×Annual Demand×Ordering Cost per Order) / Holding Cost per unit
Therefore,
optimal order quantity = √((2×250×52×$22) / ($22 × 30%))
= 294.39 or 295 boxes
Reorder point is the point at which the order should be placed to obtain additional inventories.
Reorder Point = Lead Time × Usage during the lead time
Therefore,
Reorder Point = 2 days × (250 boxes ÷ 5 days)
= 100 boxes
The optimal order quantity is 295 boxes and the reorder point is 100 boxes.
From the information given, the optimal order quantity will be:
= √(2 × Annual Demand × Ordering Cost per Order) / Holding Cost per unit
= √[(2×250×52×$22) / ($22 × 30%)]
= 295 boxes
The Reorder Point will be calculated thus:
= Lead Time × Usage during the lead time
= 2 days × (250 boxes / 5 days)
= 100
Read related link on:
https://brainly.com/question/22044395
"Differences in income inequality between countries of similar income levels can primarily be attributed to:"
Answer:
skills biased technical change
Explanation:
the options were missing, so I looked for them:
Skills biased technical change takes place when skilled workers are favored over unskilled ones. This happens because the country's productive system requires a lot of skilled workers.
Income inequality is not generally the result of how intelligent a society or a person is, but instead where they are or where you were born. Humans have the capability of learning and prospering, but no one can do it all by themselves.
For example, rich countries that base their economies on exporting raw materials like Qatar have a very high GDP per capita ($69,688), but around 70% of the country's wealth is held by 10% of the population. Actually, the remaining 90% can be considered poor and live under very bad conditions. But Qatar's economy is based solely on exporting oil, it barely produces anything else.
____________________ is leveraging cross-border differences in needs and wants of the firm's target customers.
Answer: customization
Explanation:
Customization is typically used in international marketing and it is when the wants and needs of customers are being tailored and modified in such a way that will match the local market conditions.
Customization is leveraging cross-border differences in needs and wants of the firm's target customers.
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $66. What was the dividend yield and the capital gains yield?
Answer:
Dividend yield= 2.85%
Capital gain yield= 17.85%
Explanation:
A stock has an initial price of $56 per share
The dividend paid is $1.60 per share.
The ending share price is $66
The dividend yield can be calculated as follows
= $1.60/56
= 0.0285
= 2.85%
The capital gain yield can be calculated as follows
= $66-$56/$56
= $10/$56
= 0.1785
= 17.85%
Which metric focuses on the percentage of applicants from a particular source that advance to the next stage of the selection process
Answer: Yield rate
Explanation:
The yield rate is a metric that focuses on the percentage of applicants from a particular source that advance to the next stage of the selection process.
A yield rate simply gives the percentage of applicants that come from a particular source and is the method used to know this that passed and made it to the selection process next stage. For example, if 100 applicants applied for a job and submitted their résumés through the web site of an organization and then 10 were informed to come for an interview, then the yield rate is 10%.
The Club Auto Parts Company has just recently been organized. It is expected to experience no growth for the next 2 years as it identifies its market and acquires its inventory. However, Club will grow at an annual rate of 5% in the third and fourth years and, beginning with the fifth year, should attain a 10% growth rate which it will sustain thereafter. The last dividend paid was $0.50 per share. Club has a cost of capital of 12%. What should be the present price per share of Club common stock?
Answer:
need free points sry
Explanation:
Bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods are known as:
Answer: serial bond
Explanation:
Serial bonds are bonds that mature at more than one date with the result that the principal amount is repaid over a number of periods.
A serial bond is a bond that has been structured in such a way that portions of the bonds will have to mature at regular intervals until the moment that the bonds have all matured.
Due to the fact that the bonds have to mature gradually with time for certain years, the bonds are typically used to finance projects.