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3 years ago

Why did many banks fail after the stock market crashed?

2 answers:

6 0

When the stock markets crash, the businesses crash because the economy relies on the circulation of money to stay alive, when stock markets crash, money is slowing down and businesses can't afford to keep their business

sergey [27]3 years ago

5 0

No money= no product and goods being developed and imported= no business

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Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, th

umka2103 [35]

Answer:

$468,844 approx.

Explanation:

Assumption: Since the question is incomplete, with the available information it has been construed that calculation of bond price is required and the question has been solved accordingly.

The price of a bond is the present value of future cash receipts it generates to the investor in the form of interest stream and principal stream.

$B_{0} = \frac{i}{(1\ +\ ytm)^{1} }\ +\ \frac{i}{(1\ +\ ytm)^{2} }\ +.....+\frac{i}{(1\ +\ ytm)^{n} } \ + \frac{RV}{(1\ +\ ytm)^{n} }$

wherein,

$B_{0}$ = price of bond as on today

i = annual coupon payments

ytm= investor's expectation of interest or market rate of interest on similar bonds

RV = Redemption value of such bonds assumed to be the face value

n = term to maturity

$B_{0} = \frac{22500}{(1\ +\ .05)^{1} }\ +\ \frac{22500}{(1\ +\ .05)^{2} }\ +.....+\frac{22500}{(1\ +\ .05)^{20} } \ + \frac{500000}{(1\ +\ .05)^{20} }$

$B_{0}=$ 12.46221 × 22,500 + 0.376889 × 22,500 = 280,399.725 + 188444.5

$B_{0} =$ $468,844 approx

This is the present value of the bond which is lower than it's face value because market rate of return of similar bonds is higher than the coupon rate of payment by Westside Corporation.

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3 years ago

Jan is risk-averse, but wants to earn the best rate of return in less than two years. which investment would most likely meet ja

oksian1 [2.3K]

Jan needs bonds-based mutual funds as an investment in which he wants to earn the best rate of return. It mostly consists of individual bonds wherein it is compiled in a portfolio. A bond fund when then produced incomes from underlying bonds measured in incomes.

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3 years ago

The Balance sheet of Mister Ribs Restaurant reports current assets of $30,000 and current liabilities of $15,000.a. Calculate th

Pani-rosa [81]

Answer:

Current Ratio = 2; Yes

Explanation:

First, to solve for current ratio, simply divide the current assets by the current liabilities.

So the current ratio would be $30,000 / $15,000 resulting to 2

Now, a current ratio greater than one means that Mister Ribs will be able to pay its current liabilities as they come due in the next year.

However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s liquidity or solvency.

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