COMM 111 Chapter Notes - Chapter 8-9: Canada Pension Plan, Effective Interest Rate, Harmonized Sales Tax
Document Summary
Analyze and report long term investments in bonds. Market prices of bonds fluctuate with market interest rates. If market rates are lower, the bond sells at a premium (above 100% of fair value or par) Explain impact of the time value of money on certain types of investments. Future value is what a certain amount of money would be valued at in the future given certain interest rates. Time value of money: money earns interest over time. Interest: cost of using money, to lenders this is revenue. To calculate you need: the amount of initial payment (or receipt, the length of time between investment and future receipt (or payment, the interest rate. Short term borrowings: line of credit allows a company to access credit on an as-needed basis up to a maximum amount set by the lender. Accounts payable: amounts owed for products or services purchased on credit.
