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Leto [7]
3 years ago
14

Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises

to pay a specified interest rate and principal at a future date.
The entity that promises to make the interest and maturity payments for a bond issue is called the:________.
Based on the information given in the following statement, answer the questions that follow: In July 2009, Walmart sold 100 billion yen of five-year samurai bonds. Lead managers in the deal were Mizuho Securities, BNP Paribas, and Mitsubishi UFJ Securities.
1. What type of bonds are these?
a. Government bonds
b. Municipal bonds
c. Corporate bonds
2. Who is the issuer of the bonds?
a. BNP Paribas
b. Walmart
c. Mitsubishi UFJ Securities
3. Which of the following statements is true about bonds?
a. When interest rates increase, the prices of U.S. Treasuries decline.
b. When interest rates increase, the prices of U.S. Treasuries increase.
4. Which of the following types of bonds has the least default risk?
a. Municipal bonds
b. Corporate bonds
c. Treasury bonds
Business
1 answer:
DanielleElmas [232]3 years ago
7 0

Answer:

a. Issuer

The entity that promises to make payments on the bond is the entity that issued the bond and they are therefore known as the Bond Issuer.

1. c. Corporate bonds

When a private company issues bonds, these bonds are known as Corporate Bonds. They often offer the most return of the 3 options as they are the riskiest.

2. b. Walmart

Walmart are the issuers of the bond. The rest are Lead Managers who are often Investment banks who help in the facilitation of Bond Issuance.

3. a. When interest rates increase, the prices of U.S. Treasuries decline.

Bond prices and interest rates have an inverse relationship. This is because of the fixed interest payment that bonds offer which can either be attractive or not to investors depending on market rates. For instance, when interest rates are high, other investment vehicles will offer more returns than bonds and so people will divest from them which will reduce their price.

4. c. Treasury bonds

US Treasury and indeed Government bonds on average are the least riskiest of the options listed as they are backed by the full weight and faith of the central government and all its assets. If all else fails, the Central Government could simply print more money to pay off the bonds.

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Partial adjusted trial balance for Pina Colada Corp. at December 31, 2017, includes the following accounts: Retained Earnings $1
lara [203]

Answer:

See below

Explanation:

Pina Colada Corp.

Retained earnings statement for the year

Retained earnings January 1 [$16,700 + $4,700 - $10,400] $11,000

Add: Net income $10,400

Less: Dividends $4,700

Retained earnings, December 31 $16,700

Therefore, ending retained earnings is $16,700

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On January 1, 2020 (the date of grant), Concord Corporation issues 2,300 shares of restricted stock to its executives. The fair
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Answer:

Explanation:

Date. Description/Account. Debit. Credit.

1/1/2020. Unearned Compensation. $69,000

Paid - in Capital in Excess of Par. $69,000

Common stock. $10,000

12/31/2020 Compensation Expense. $23,000

Unearned Compensation. $23,000

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Explanation:

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"In a new margin account, a customer buys 1,000 shares of ABC stock at $40 per share. The stock rises to $45 during the next wee
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Alison incurs the following research expenditures. In-house wages $125,000 In-house supplies 12,500 Paid to ABC, Inc., for resea
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a. The amount of Alison's qualified research expenditures for the tax year is $251,250.

b.  Alison's incremental research activities credit is $20,250.

a. Alison's qualified research expenditures:

Qualified research expenditures=In-house wages+ In-house supplies+ (Research services× 65%)

Qualified research expenditures=$125,000+$12,500+ ($175,000×65%)

Qualified research expenditures=$125,000+$12,500+$113,750

Qualified research expenditures=$251,250

b.  Alison's incremental research activities credit:

Incremental research activities credit=(Qualified research expenditures-Base amount)×20%

Incremental research activities credit=($251,250-$150,000)×20%

Incremental research activities credit=$101,250×20%

Incremental research activities credit=$20,250

Inconclusion  the amount of Alison's qualified research expenditures for the tax year is $251,250 and Alison's incremental research activities credit is $20,250.

Learn more about qualified research expenditures here:brainly.com/question/8174418

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