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GaryK [48]
3 years ago
6

Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what ef

fect, other things held constant, would that have on bond prices and interest rates?
Business
1 answer:
Sidana [21]3 years ago
4 0

Answer:

Prices would decline and interest rates would rise

Explanation:

This is because the market will be flooded with additional 50 billion dollars of bond increasing the supply causing the price to fall. Interest rate are inversely proportional to prices thus interest rate will rise.

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On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note requir
hammer [34]

Answer:

Dr interest expense $7,000

Dr notes payable $7,238

Cr cash                                     $14,238    

Explanation:

The first task is to compute interest expense on the loan in year 1 which is shown below:

interest expense=$100,000*7%

interest expense=$7,000

Principal repayment=repayment-interest repayment

Principal repayment=$14,238-$7,000=$7,238

The double entries are to debit interest expense and notes payable with $7,000 and $7,238 respectively while cash is credited with $14,238 as an outflow of cash.

3 0
3 years ago
Pompeii, Inc., has sales of $54,500, costs of $24,800, depreciation expense of $2,700, and interest expense of $2,450. If the ta
inysia [295]

the interest equals 47009 because the numbers added together

6 0
3 years ago
Winston Churchill was born when his father entered Parliament dependent or independent
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Winston-Churchill was born when his father entered Parliament independent
8 0
3 years ago
Multico is a securities dealer whose principal market is with other securities dealers. To take advantage of a perceived opportu
Delvig [45]

Answer:

$50,100

Explanation:

Given that

Acquired value of a financial asset other than principal market = $50,000

Sale value of the identical instrument in principal market = $50,100

Transaction cost = $200

For reporting the fair value, we have to exclude the transaction cost i.e $200 and consider that cost which is to be received while exchanging i.e $50,100

This sale value would be equal to the fair value i.e $50,100 should be reported as a fair value

3 0
3 years ago
suppose the fimrs hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the fi
rusak2 [61]

Answer:

The question is missing the amount of output units that each additional unit of labor generates, but we can calculate how many units each additional unit of labor should produce in order to maximize profit.

In order for a firm to maximize its profit, the marginal revenue product (MRP) = marginal cost (MC).

MRP = output units per additional unit of labor x price per unit = U x $9

MC = $700

U x $9 = $700

U = $700 / $9 = 77.78, so we round up to 78 units

In order to maximize profit, each additional unit of labor must generate 78 additional units of output.

6 0
3 years ago
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