Answer:
The correct answer to the following question will be "8%".
Explanation:
The given values are:
Number of years of maturity = 5 years
Interest rate of coupon = 10%
= 10%×1000
= 100
Yield to maturity, YTM = 8%
As we know,
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ = 
⇒ = 
After 1 years, we get
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ = 
⇒ = 
Now,
The total return rate = 
= 
= 
Answer:
d. Credit to the investment account for $9000.
Explanation:
Since Zach company owns 45% of the voting stock in the Tomas corporation and Tomas corporation uses an equity method in recording this investment and it reports a net loss of $20,000.
The Zach company's entry would be Credit to the investment account for $9000.
- Calculations: $20000 * 0.45 = 9000.
Hope this helps.
ThankYou.
Answer:
A) $3,429
Explanation:
Bonus capital paid by the new shareholders will be distributed among the Old Partner on the basis of their old sharing ratio
Capital Balance of Peter = $38,000
Settlement amount = $20,000
As we does not have revised profit ratios, Peter and Chris will share profit on their old ratios.
Remaining balance of Gary's capital = $26,000 - $20,000 = $6,000
Peter Share = 4/7 x $6,000 = $3,429
Answer: increased, decreased
Explanation: The following case relates to insider trading which refers to the situation when some employees of the organisation,having private information regarding the decisions uses that information for gaining profit in the stock market by treading their company's stock.
When the insiders extensively bought the stock which means the company is going to make a decision from which the stock price is gonna rise and vice versa.
