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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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1/1/2019 sally miller purchased $500 of merchandise on account; the cost of the item is $310
timofeeve [1]

<u>Solution and Explanation:</u>

date                           Particulars                                  Debit                    Credit

1st january, 2019    Account receivable                  500

                                Sales revenue                                                            500

                    (To record sales on account)

                        Cost of goods sold                              310

                       Merchandise inventory                                                      310

             (To record cost of goods sold)

31st january, 2019       Notes receivable                     500

                                 Accounts receivable                                                 500

(To record notes receivable for the 60 days at the rate of 6 percent)

1st April, 2019 Allowances for Doubtfull accounts          500

                        Notes receivable                                                                500

(In order to write off Sally Millers account, no interest revenue is to be recognised)

2nd May, 2019           Notes receivable                             500

                              Allowances for doubtful debts                                     500

( in order to record re-instatement)

2nd May, 2019             Cash                                                  507.50

                                  Notes receivable                                                        500

                               Interest revenue                                                             7.5

( In order to record the payment received)

3 0
3 years ago
What is the main activity of a producer cooperative?
fomenos
I think it's C

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2 years ago
Discuss motivation hygiene theory proposed by Fredrick Hertzberg
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Answer:

This answers may help you

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3 years ago
Pioneer has developed a new consumer electronics item-a heterogeneous shopping product with unique patented features. it probabl
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8 0
3 years ago
On January 1 of the current year, Barton Corporation issued 11% bonds with a face value of $99,000. The bonds are sold for $94,0
Bogdan [553]

Answer:

$11,880

Explanation:

Calculation to determine The bond interest expense for the year ended December 31 is

First step

Semiannual interest=($99,000 * 0.11 * 6/12)

Semiannual interest= $5445

Second step

Semi-annual discount amortization

Semi-annual discount amortization=($99,000 - $94,050)/5*/12

Semi-annual discount amortization=($4950 / 5)*6/12

Semi-annual discount amortization= 495

Third step

Semiannual interest expense=(5445 + 495)

Semiannual interest expense = $5940

Now let determine the bond interest expense

Bond interest expense =($5940 * 2)

Bond interest expense = $11880

Therefore The bond interest expense for the year ended December 31 is $11,880

3 0
2 years ago
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