Answer:
D. Both bonds will decrease in value but bond B will decrease more than bond A.
Explanation:
A given bond is worth the same amount when it matures, so an increase in interest rates means that it must have a lower current value to grow to the same end value.
Comparably, bond B will grow more than bond A throughout its term, so the initial value decreases by more than bond A to compensate.
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
- How many shares of common stock are outstanding?
C. 3,000
Explanation:
Treasury stock, are those that the company repurchase from the market and keep it in the company, in this case the company keep the shares in the accounting and the shares could be reissued in the future.
The company issued 9,000 shares, it is reflected in the Common Stock account, $90.000 / $10 = 9,000.
Then in the Treasury Stock account are registered the shares that the company repurchases from the market, these are, 6,000 shares.
Finally the total Common Shares outstanding are 3,000.
Consuelo's signature would be on the lower right hand side of the cheque as that is the standard location for signing cheques and it shows that the cheque is authorized for payment to the designated recipient. The name of the signer should be the same as one of the printed names on the top of the cheque ie of the account holders.
