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lukranit [14]
3 years ago
8

When a bank's loans are written off then the bank's?

Business
1 answer:
VladimirAG [237]3 years ago
8 0
When a bank's loans are written off, then the bank's RESERVES SHRINK WHEREAS ITS DEBTS REMAINS THE SAME. Sometimes, due to unpleasant situations, banks are forced to write off loans which they hand lend out to borrowers and which the borrower are unable to repay. This action reduces the amount of money that the bank has in its reserve.
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What is the current price for a $8,500 bond that has a price quote of 89? What is the current price of the bond?
Paha777 [63]

Answer:

Current Price of bond= Number of Bonds *price quoted...........Equation 1

Number of Bonds = Total Nominal value/100........Equation 2

So this means that the formula for the computation of market value of all bonds held is same to the computation of total Market value of shares held.

Market Value of bonds held= Total Nominal value/100 * price quoted...EQ3

Putting values in the equation 3

Market Value of bonds held= $8500/100*$89 per bond= $7565

Equation 3 was derived to enable you understand why we divide Total nominal value with 100 (par value). We do this to compute "Number of bonds held."

3 0
3 years ago
The Allowance for Bad Debts account had a balance of $6,300 at the beginning of the year and $8,100 at the end of the year. Duri
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6 0
3 years ago
Joan sells new cars at a local dealership. she receives a 25% commission on the profit each car is sold for. last month she sold
Usimov [2.4K]
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Answer:

e. brand dilution.

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214.5
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4 years ago
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