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2 years ago

In the financial industry, "securitization" refers to

1 answer:

3 0

In the financial industry, "securitization" refers to bundling debt, such as loans, bonds and mortgages into securities. In finance, a security is a tradable asset. They are debt securities such as bonds and then there are equity securities such as stocks. Bundling debt keeps everything organized and streamlined for people to know what they need to pay down.

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On July 1, Year 4, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for $420,000. The bonds are c

Kruka [31]

Answer:

Options Include:

A. $20,000

B. $16,800

C. $18,200

D. $21,800 is Correct

Explanation:

Interest income for a bond provided at a discount is equal to the total of both the periodic cash flows as well as the value of the amortized bond discount during the interest duration.

Periodic cash flows are equivalent to $20,000 ($500,000 death benefit multiply by 8 percent coupon rate multiply 1/2 year). The amortization for the discount is provided as $1,800.

Income for the six-month period from July 1 to December 31, Year 4, is therefore $21,800 ($20,000 + $1,800).

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2 years ago

A specific purpose statement is one of the first tools you can use to develop your speech. You will develop your specific purpos

Pavel [41]

Age is the answer for the question

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2 years ago

Read 2 more answers

The Cash account of Gate City Security Systems reported a balance of $2,530 at December 31, 2018. There were outstanding checks

Soloha48 [4]

Answer:

Gate City Security Systems

Bank Reconciliation at December 31, 2018

Book:

Balance , December 31, 2018 $2,530

Add:

Collection from Jane Lindsey $500

Interest revenue $10

Less:

Service charges $20

Adjusted book balance December 31, 2018 $3,020

Bank:

Balance , December 31,2018 $3,120

Add:

Deposit in transit $400

Less:

Outstanding cheque $500

Adjusted bank balance December 31, 2018 $3,020

3 0

2 years ago

Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business

oksian1 [2.3K]

Answer:

scenario 1

owner made no investment in the business and no dividend were paid during the year, there may be no income or net loss incurred by the business. there is no decrease or increase in equity.

scenario 2

owner made no investments in the business but dividend were $700 cash per month, the net income earned during the year equal $700*12 = $8,400. There is no changes in equity

scenario 3

No dividend were paid during the year but owner invested an additional $45,000 cash in exchange for common stock. There will be increase in equity by $45,000 but net income or net loss cannot be determined

scenario 4

Dividend were $700 cash per month and the owner invested additional $35,000 cash in exchange for common stock. The net Income earned will $8,400 while $35,000 will added to equity as additional capital.

Explanation:

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2 years ago

Ted's Co. offers a zero coupon bond with an 11.3% yield to maturity. The bond matures in 16 years. What is the current price of

Helga [31]

Answer:

Zero-cupon bond= $835.45

Explanation:

Giving the following information:

Face value= $1,000

YTM= 11.3%

Years to maturity= 16 years

To calculate the price of the bond, we need to use the following formula:

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= 1,000 / (1.113^16)

Zero-cupon bond= $835.45

3 0

2 years ago