Answer and Explanation:
The journal entry at the time of receiving the note is as follows:
Note receivable Dr $11,000
To Account receivable $11,000
(Being the note receivable is recorded)
Here the note receivable is debited as it increased the assets and credited the account receivable as it decreased the assets
Answer:
Yield to maturity is 7.93%
Yield to call is 7.83%
Explanation:
I calculated both the yield to maturity and yield to call using the rate formula in excel which is =rate(nper,pmt,pv,-fv)
nper is the year to maturity and year to call of 18 years and 8 years respectively.
pmt is the periodic coupon payment is 9%*1000=$90 in each case.
pv is the present value in each case of $1100.35
The future value which is the redemption value is $1000 for yield to maturity and $1060 for yield to call
Find attached detailed calculation
Answer: D. Recognize the loss in the current period rather than over the remaining term of the engagement
Explanation:
A fixed rate contract is the contract whereby the payment amount isn't dependent on the resources or the time that were used.
Since there's evidence that a fixed-rate contract is over budget and will generate a loss for the firm, the manager should recognize the loss in the current period rather than over the remaining term of the engagement.
Therefore, the correct option is D.
The reason that interest rate risk is greater for <u>long</u>-term bonds than for <u>short</u>-term bonds is that the change in rates has a greater effect on the present value of the <u>Par Value</u> than on the present value of the <u>Coupon</u>.
<h3>What is a Long-term Bond?</h3>
Long-term bonds are investments that span a maturity term of at least 10 years and up to 30 years.
They usually pay a higher interest rate than the short-term bonds which span between a year and three years.
See the link below for more about long-term bonds:
brainly.com/question/3521722
