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3 years ago

What is a bond bubble and how did it help inflate the stock market?

Business

1 answer:

victus00 [196]3 years ago

6 0

The daily chart for the Dow shows how fast the stock market can decline when the 'inflating parabolic bubble' pops.

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On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and

Effectus [21]

Answer:

The journal entry is shown below:

Explanation:

Journal Entry.

Jan.1 Cash A/c Dr $460,000

To Bonds payable A/c $460,000

(Bond issue is being recorded)

Jun.30 Interest Expense A/c Dr $18,400

To Cash A/c $18,400 ($460,000×4% = $18,400)

(Interest is being recorded)

Dec.31 Interest Expense A/c Dr $18,400

To Cash A/c $18,400 ($460,000×4% = $18,400)

(Interest is being recorded)

3 0

3 years ago

Managerial economics can be applied to the non-profit organizations too. Justify this statement?

DIA [1.3K]

Managerial economics can be applied to the non-profit organizations too because it help them in organizing, and controlling their resources.

Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.

<h3>What is Managerial economics?</h3>

Managerial economics is an area of economics that is used for staffing, as well as controlling the resources of the organization.

With Managerial economics , one can carry out:

planning
directing
organizing

In this case, Managerial economics is relevant to nonprofit organizations and government agencies as well as conventional, for-profit businesses.

Learn more about Managerial economics at:

brainly.com/question/15050855

#SPJ1

8 0

2 years ago

Assume an increase in global agricultural production of food due to technology while global population remains the same. Due to

MA_775_DIABLO [31]

Answer:

The equilibrium price falls and quantity increases

Explanation:

When the supply of food rises without a corresponding increase in demand , there would be an excess supply.

When there's excess supply, prices fall and the quantity produced rises.

I hope my answer helps you

6 0

3 years ago

The debt payments-to-income ratio is:

Phoenix [80]

Answer: The debt payments-to-income ratio is: calculated by dividing monthly debt payments (excluding mortgage payments) by net monthly income.

This ratio is a measure that analyze an person’s monthly debt payment in accordance with his/her monthly income.

The gross income is the pay before taxes and other variables are deducted.

<em>i.e. </em><em>debt payments-to-income ratio = $\frac{Total\: of\: Monthly\: Debt\: Payments}{Gross\:Monthly\:Income}$ </em>

<em>Therefore, the correct option is (b)</em>

5 0

3 years ago

The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The bonds pay interest semiannuall

lesya [120]

Answer:

$120

Explanation:

Interest Expense on the Bonds payable is the coupon payment plus any amortized discount. As in this question there is no amortized discount because the bonds are issued on the par value.

As er given data

Face Value = $100,000

Coupon payment = $100,000 x 12% = $120 annually = $60 semiannually

Interest Expense for the year = Interest Paid on June 30 + Interest Paid on December 31

Interest Expense for the year = $60 + $60 = $120

7 0

3 years ago