Answer:
An <u>increase</u> in the liquidity of corporate bonds will <u>increase</u> the price of corporate bonds and <u>decrease</u> the yield on corporate bonds, all else equal.
Explanation:
Bond liquidity refers to how quickly the bonds can be redeemed and converted to cash. This relates to the ease with which an investor can sell his bond.
High liquidity bonds are costly as they are more in demand and an attractive investment for the investors.
Thus, bond liquidity is directly related to it's price.
The yield of a bond refers to the market rate of return and represents the expectation of the bondholder with respect to rate of return.
A high price bond ( high liquidity) usually pays higher coupon rate of interest which is higher than the market rate of return on similar bonds i.e yield to maturity. This means price of a bond is inversely related to it's yield. Higher the bond price, higher the coupon payment, lower the bond yield.
Answer:
d. $15,000 is allocated to A; $10,000 is allocated to B
Explanation:
Activity C will not carry and suspended losses as it was profitable, the net of 25,000 will be distributed among the lossing activites:
60,000+ 40,000 = 100,000 loss
activity A weight 60%
activity B weight 40%
net loss: 25,000
activity A 25,000 x 60% = 15,000
activity B 25,000 x 40% = 10,000
Answer:
Yes, because the stock is a direct financial interest.
Explanation:
The principals of the AICPA Code of Professional Conduct contains the responsibilities which are to exercise sensitive professional and moral judgment, in terms of the Public Interest to always honor the public trust and perform responsibilities with the highest sense of integrity.
The 3 Parts of the AICPA code of conduct. This includes:
(1) Members in public practice
(2) Members in business
(3) Other members
In accounting, code of conduct is important as it makes individuals to accept a high degree of responsibility toward the public.
Thd independence of a covered member is impaired when:
A. The covered member has a direct financial interest in a client
B. The covered member has a material indirect financial interest in the client
Direct Financial Interest
This is simply known as the ownership interests that is directly held in a client. An example is stock ownership, even if owned in a blind trust etc.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Kristen Lu purchased a used automobile for $10,100 at the beginning of last year and incurred the following operating costs: Depreciation ($10,100 ÷ 5 years) $ 2,020 Insurance $ 1,100 Garage rent $ 600 Automobile tax and license $ 280 Variable operating cost $ 0.14 per mile
1) 10,000 miles
Insurance= 1,100
Garage= 600
Tax= 280
Variable costs= 0.14*10,000= 1,400
Total= $3,380
Cost per mile= 3380/10000= $0.338
2) The only relevant cost is the variable operating cost per mile. The other costs will exist whether she uses the car or not.
Answer:
Honesty and sincerity build long-term partnering relationships with customers.
Explanation:
