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ra1l [238]
2 years ago
15

Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7

.72% A = 9.64% AAA = 8.72% BBB = 10.18% The differences in rates among these issues were most probably caused primarily by:
Business
1 answer:
miv72 [106K]2 years ago
7 0

Answer:

Investors are risk averse, which means that they are willing to invest in low risk projects or investments. In order for an investor to invest in a riskier project, he/she will expect to receive higher returns to compensate for the extra risk. US Treasury bonds are probably the safest investments in the world, that is why they yield the lowest interest rate. AAA bonds are less risky than BBB bonds, which in turn are less risky than CCC bonds. That is why AAA bonds yield a lower return than BBB bonds, and BBB bonds yield a lower return than CCC bonds.

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Suppose that the country of Libraria made a concerted effort to increase the educational level of its people. If this effort had
tatuchka [14]

Answer:

If this effort had no effect on the wages of its workers, one might consider this as evidence in support of:

d. neither the human-capital nor the signaling view of education.

Explanation:

The human capital view of education argues that education increases workers' productivity, which also affects some increase in workers' wages.  The signaling view states that education passes a message about workers' various innate abilities to potential employers. This implies that the focus of the signaling view or theory is not the effect of education on the students but the message communicated in the labor market.

6 0
2 years ago
Tax Savings. John and Cheryl just borrowed $30,000 on a home equity line of credit. The interest rate for the loan is 6.75% for
Sauron [17]

Answer:

$378

Explanation:

Interest expenses in current year = Amount of borrowing*Interest rate*8 month/12 months

Interest expenses in current year = $30,000 * 6.75% * 8/12

Interest expenses in current year = $1,350

Tax saving on interest expenses = Interest expenses * Tax rate

Tax saving on interest expenses = $1,350 * 28%

Tax saving on interest expenses = $378

So, their tax savings for the first year ending December 31 will be $378.

6 0
3 years ago
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway p
Delicious77 [7]

Answer:

DR Interest receivable                                  26,400

CR Interest revenue                                                       26,400

Explanation:

As first lease has already been paid, the amount left of the lease is;

= 280,000 - 40,000

=$240,000

Interest is 11% so the interest to be received in December is;

= 11% * 240,000

= $‭26,400‬

This will be debited to Interest receivable as it is money owed and credited to Interest revenue as it is money earned.

6 0
3 years ago
Which is not one of the five basic elements of aâ paragraph?
Oduvanchick [21]
The Five Basic Elements of a Paragraph:

1. Unity

2. Development 

3. Audience 

4. Organization

5. Topic Sentence

Answer: A. Spelling

hope this helps!

3 0
3 years ago
What is the historical development of accounting​
Vaselesa [24]

Answer:

Accounting history dates back to ancient civilizations in Mesopotamia, Egypt, and Babylon. For example, during the Roman Empire the government had detailed records of their finances. However, modern accounting as a profession has only been around since the early 19th century. The earliest accounting records were found over 7,000 years ago among the ruins of Ancient Mesopotamia. At the time, people relied on accounting to keep a record of crop and herd growth.

Explanation:

4 0
3 years ago
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