Answer:
a. increase over time, reaching par value at maturity
Explanation:
If current yield is more than coupon rate, it means that the bond price is less than par value, as time to maturity decreases bond value amortizes to par value. Thus, If an investor purchases a bond when its current yield is higher than the coupon rate, then the bond's price will be expected to <u>increase over time, reaching par value at maturity.</u>
Answer:
A. levied on imports, whereas a quota is imposed on exports.
B. levied on exports, whereas a quota is imposed on imports.
C. a tax levied on exports, whereas a quota is a limit on the number of units of a good that can be exported.
D. a tax imposed on imports, whereas a quota is an absolute limit to the number of units of a good that can be imported.
Explanation:
Answer:
Explanation:
The journal entry to record the bad debt expense is shown below:
Bad debt expense A/c Dr $9,000
To Allowance for doubtful debts $9,000
(Being bad debt expense is recorded)
The computation of the bad debt expense is shown below:
= (Ending balance in the Allowance for Uncollectible Accounts) - (credit balance of Allowance for Doubtful Accounts)
= ($12,000) - ($3,000)
= $9,000