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Contact [7]
3 years ago
8

Builtrite has two bond issues outstanding(sold two separate groups of bonds over the years). One issue has a 7 year maturity and

the other issue had a 12 year maturity.Both bonds are paying 4.25% annual interest. Investors only require a 3.75% return, which of the following statements is true?
a) The 7 year bond issue is riskier than the 12 year bond issue
b) Both bond issues have the same amount of risk
c) The 7 year bond price will be selling closer to par value
d) The 12 year bond price will be selling closer to par value
Business
1 answer:
baherus [9]3 years ago
4 0

Answer:

C

Explanation:

Here, we want to select which of the given options in the question is true/correct.

From the question we can observe that the two bonds have required return less than coupon rate. Hence we can conclude that, both are premium bonds. The 7-years bond however. will have closer price to par value.

Bond prices will gradually decrease as we have a decrease in years to maturity. This means that the closer the year to maturity, the lesser the value of the bond price

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Answer:

$32.4 million

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The computation of the balance in the deferred tax liability in the December 31, 2021, balance sheet is shown below:

Deferred tax liability  is

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PB10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5] Tig
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Complete Question:

PB10-2 Recording and Reporting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5]

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Jan. 3 Purchased merchandise on account at a cost of $24,000. (Assume a perpetual inventory system.) Jan.

27 Paid for the January 3 purchase.

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Dec. 31 Adjusted the accounts at year-end, relating to interest.

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Required:

1. & 2. Prepare journal entries for each of the transactions through August 1 and any adjusting entries required on December 31.

3. Show how all of the liabilities arising from these items are reported on the balance sheet at December 31.

Answer:

Prepared journal Entries for Questions 1, 2 and 3 are attached as images in this order

1 Journal Entry Worksheet 1 (image 1)

2 Journal Entry Worksheet 1 (image 2)

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In Business management, the first steps you should consider when constructing an online business strategy are:

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Read more on business strategy here: brainly.com/question/17130109

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Complete Question:

Which are the first steps you should consider when constructing an online business strategy?

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