Answer: Option <u>" C. Even though a bond has a substantial initial interest rate, its return can turn out to be negative if interest rates rise. "</u> is generally true of all bonds.
Explanation: The negotiation of bonds in the open market can lead to a negative return on the bonds if the price of the bonds is negotiated with a sufficient premium. Remember that bond prices change inversely with the yield of a bond, the higher the price of a bond, the lower the yield. At some point, the price of a bond may increase enough to imply a negative return for the buyer.
Answer:
The answer is "First choice"
Explanation:
According to David Parker and Alison Money's Project Leader study, a systematic risk assessment has already shown a shallow grasp of the tools and benefits. One reason that was found in their phenomenologic analysis of the project leaders by David Parker and Alison Mobey2 is that they've had no understanding of the tools and benefits of formal project risk analysis. The lack of formal instruments for risk management is seen by many as an obstacle to the implementation of a risk management program.
Answer:
The journal entry is as follows:
Cash A/c Dr. $ 25,437.50
To Notes Receivable A/c $25,000
To Interest revenue A/c $437.50
(To record the collection of the note and interest at maturity)
Working notes:
Interest for 90 Days:
= Note value × Interest rate × Time period
= $25,000 × 0.07 × (90/360) days
= $437.50
Answer:
Annual depreciation=$188,000
Explanation:
Giving the following information:
Purchasing price= $1,000,000
Salvage value= $60,000
Useful life= 5 years
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (1,000,000 - 60,000)/5
Annual depreciation=$188,000
