Answer: 1. $218750 ; 2. $231, 250 ; 3. $11562.50
Explanation:
1. The bonds with a par value of $250,000 and implied selling price of 87 ½.
Cash proceed = 250,000 × 87.5%
= $218,750
2. Since it's semiannual interest payments, the total amount of bond interest expense that will be recognized over the life of these bonds will be:
[20 × (250,000 × 8% × 6/12)]+ $250,000 - $218,750
= $200,000 + $250,000 - $218,750
= $231, 250
3. The amount of bond interest expense recorded on the first interest payment date will be:
= Total bond interest expense/number of payments
= $231,250/20
= $11562.50
Answer:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Explanation:
Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.
The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.
When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.
Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:
a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.
b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.
Answer:
E. Cultural pollution.
Explanation:
In marketing terminologies, cultural pollution implies pertaining to customs, beliefs, art and all the other products of human thought made by a particular group of people at a particular time. Culture provides a sense of identity; it defines who you are and maintains a sense of belonging. It validates our reason for being in this world, defining where we are headed in our lives. Cultural rules influence people to behave similarly, making it easier for them to identify with each other. It shapes attitudes, thinking, behavior and values. It is also normative, defining the standard for judging values and behavior.
Answer:
The correct answer is <em>(A) how</em>.
Explanation:
The news headline "Consultants replacing high school counselors" deals with the how question(s) of economics.
Given the structure of the sentence, the most appropriate word in this sentence is how.
Consultant is the professional who dominates a specific topic and uses his knowledge to help other people.
