Explanation:
It all depends on the market conventions and the bond documentation.
1 In most countries, traditionally fixed coupon bonds don’t have their coupons day counted. So if the frequency is twice a year, and the annual coupon rate is 5.5%, then each semi-annual coupon is exactly 5.5/2=2.75%. However a lot of other instruments, e.g. fixed swap legs, loans, and bonds that are really “loan participation notes”, etc. usually have their fixed coupons day counted. So each coupon amount will vary a little depending on the number of days in the accrual period, weekends and holidays.
Answer:
$85,000 and $65,000
Explanation:
Let us the short term note be X for 10%
And, the long term note for 8% is ($150,000 - X)
Now the equation is
0.10X + 0.08 × ($150,000 - X) = $13,700
0.10X + 12,000 - 0.08X = $13,700
0.02X = $13,700 - $12,000
0.02X = $1,700
So, X = $85,000
And, at 8% it would be
= $150,000 - $85,000
= $65,000
Hence, for 10% it is $85,000 and for 8% it is $65,000
Answer:
Positive; Positive
Explanation:
The specific factors model was developed by Paul Samuelson and Ronald Jones where labor is defined as a mobile factor while land is specific factor.
In the specific factors model, the effects of trade on welfare overall are positive and for fixed factors used to produce the exported good they are positive."
Answer:
Journal entry
31 December Debit Inventory write_down (loss) 1550, Credit inventory 1550
Explanation:
Inventory is accounted for at the lower of cost or net realizable value. inventory write_ down is impairment a loss to the organisation
there can never be a gain when revaluing inventory, either it remains at cost or goes down with NRV
cost market write down
closing inventory calculation
Alligator ( 70 units) 3220 2870 350
Bear (85 units) 6800 6800 0
Cougar ( 10 units) 900 920 0
Dingo ( 35 units) 1225 1225 0
Elephant ( 400 units ) 6000 4800 1200
<u> 18145</u> <u>16615</u> <u>1550</u>
COUGAR has a high market value so we value it at cost because it is the lower of the two.
Answer:
-260,000 current earings and profits
Explanation:
From the taxable income we are going to adjust to get the current earnings and profits
-500,000 taxable income
-20,000 non-deductible expenses
+10,000 exempt taxes
+250,000 deferred gain
-260,000 current earings and profits