Answer:
C. Estimate credit losses.
Explanation:
the client prepared aged triad balance of account receivable is generally included in audit documents so that the evaluation of estimated credit losses can be done.
Therefore, This aging is best used by the auditors to Estimate credit losses.
If a bond's coupon rate exceeds its yield to maturity, the bond is selling at a premium over par.
A premium is an amount that an insured person pays to an insurance company on a regular basis to cover a risk. Description: In an insurance contract, the risk is transferred from the policyholder to the insurance company. To take on this risk, insurance companies charge an amount called a premium.
This is the price paid to an insurance company by an individual or company wishing to enter into an insurance policy. Premiums are the income of insurance companies. The premium amount depends on the type of insurance. It also depends on factors such as the type of insurance coverage. The age group to which the policyholder belongs.
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Answer:
14%
Explanation:
Rate of return = Coupon + (Selling price - face value) / face value
Rate of return = $98 + ($1,020 - $980) / $ 980
= 0.14
= 14%
YTM = [C + (F - P) / n] ] / [(F + P) / 2 ]
Where:
- C = Coupon
- F = Face Value
- P = Selling Price
- n = Years to Maturity.
YTM = [$98 + ($980 - $1020) / 5] ] / [($980 + $1020) / 2 ]
= 0.09
= 9%
Thus, the yearly rate of return (14%) is higher than the coupon rate (10%), and the YTM (9%).