Answer:
Interest rate on the a three year bond =5.5%
Explanation:
one-year bond rate expected = 4%, 5%, 6% for the next three years
liquidity premium on a three year bond = 0.5%
number of years = 3
The interest rate on the a three year bond can be calculated as
= liquidity premium + ( summation of bond rates for the next three years/number of years )
= 0.5 + ( (4+5+6)/3)
= 0.5 + ( 15/3)
= 0.5 + 5 = 5.5%
Answer:
Accounting information helps users make business and financial decisions.
Explanation:
Users of accounting information are divided into :
- Internal users
- External users
Internal users include : owners, managers, employees
External users include : shareholders, tax authority, regulatory bodies
Based on the information contained in the financial information a shareholder can decide if to invest in a company or not to.
Also, mangers can decide to invest in new ventures based on the information on profitability contained in the financial statements.
Deficit means something that small or a shortage of so
by that you would subtract is 12550355000000 in 2010
Answer:
$3,000,000
Explanation:
Short term debt: The short term debt is those debts that are due for a less period i.e less than 12 months or one year. It is shown under the current liabilities on the balance sheet side.
In the question, it is given that the $3,000,000 note payable is mature on March 15, 2018, and we record the same on December 31, 2017 balance sheet. If we see the time period between these two dates so it will be less than 12 months. That's why we consider as a total short term debt