Answer:
a. Issuer
The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.
1. c. Corporate bonds
When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.
2. b. Walmart
Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.
3. a. When interest rates increase, the prices of U.S. Treasuries decline.
Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.
4. c. Treasury bonds
US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.
Answer:
Dr. Cash 78.0
Dr. Discount on Bonds Payable 6.0
Cr. Bonds Payable
Cr. Equity-Stock Warrants
Explanation:
Answer:
Guaranteed residual value, Unguaranteed residual value and Rental payments.
Explanation:
I. Guaranteed residual value, II. Unguaranteed residual value, and IV. Rental payments will all be included in Lease Receivable account EXCEPT executory cost which is already included in the rental payment.
Executory cost refers to the cost of normal expenses associated with owning a leased asset, including insurance, maintenance, and taxes.
Executory costs are paid by the lessee and they are included as part of the rental payment or a pass through expense paid directly by the lessee.
Answer:
D.
Explanation:
The vertical analisys shows the different components of a finalcial statement related to a total figure in the statement.
Expresses each financial statement item as a percent of a base amount.
Commonly applied to the balance sheet and the income statement. On the balance sheet, set total assets to 100. On the income statement, set net sales to 100. The resulting statement, expressed entirely in percentages is called a common-size statement.
The total figure in the statement set to equal to 100. Each component´s percentage of that total is computed.
Usefull for comparing. The important of specific components in the operation of a business. Changes in the components from one year to the next.
The pitch....for a sales and marketing item or scam.
