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3 years ago

Which bond would you expect to pay the highest interest rate?

Business

1 answer:

UNO [17]3 years ago

4 0

Answer:

The bond that should pay the highest interest rate is:

d. a bond issued by a new restaurant chain.

Explanation:

This is based on the fact that the new restaurant chain is untested, has higher risk profile and the bondholders are assuming higher risks, and the bond cannot be compared to the bonds issued by the US government, New York State, and General Motors, in that order. The new restaurant chain will be offering a higher rate of return than others because it is new to the bond market and would like to attract potential bond investors. Without the higher rate, therefore, it will not be successful in the bond issuance.

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On January 1, Year 2, Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowanc

Sonja [21]

Answer:

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

= $97,000.

Explanation:

a) Data and Calculations:

Accounts Receivable balance on January 1, Year 2 = $16,000

Allowance for Doubtful Accounts balance on January 1, Year 2 = $0

Service Revenue on credit during Year 2 = $104,000

Cash collected from Accounts Receivable = $97,000

Accounts Receivable balance on December 31, Year 2 = $23,000

Allowance for Doubtful Accounts balance on December 31, Year 2 = $2,080 ($104,000 * 2%)

Net Accounts Receivable balance on December 31, Year 2 = $20,920 ($23,000 - $2,080)

b) The $97,000 is the actual cash inflow received from customers during Year 2. It increases the cash inflows and forms part of the operating activities section of the Statement of Cash Flows for Year 2 under the direct method.

8 0

3 years ago

The population of the Republic of Butters is 165.

Anna11 [10]

Answer:

165 / 130

165 /25

divide and get your answer

7 0

3 years ago

On January 1, 2018, Brazos Company purchased equipment and signed a sixminusyear mortgage note for $ 186 comma 000 at 15%. The

kifflom [539]

Answer:

The journal entry to record the first installment payment will include a debit to interest expense of $27,900, mortgage notes payable of $21,248 and a credit to cash account of $49,148

Explanation:

For recording the first installment payment, we have to compute the interest amount which is given below:

Interest amount = value of Mortgage note × rate × year

= $186,000 × 15% × 1 year

= $27,900

Since we have to compute the installment for January 1, 2019, therefore, we take the one year period

Now, we have to compute the principal amount which equals tp

= Installment amount - interest expense

= $49,148 - $27,900

= $21,248

So, the journal entry would be

Interest expense A/c Dr $27,900

Mortgage note payable A/c Dr $21,248

To Cash $49,148

(Being payment of the first installment recorded)

7 0

3 years ago

Bossa Nova founder and CEO Alton Johnson was fascinated with the fruits of Brazil, a fascination that led him to develop juices

tamaranim1 [39]

Answer:

(B) idea generation

Explanation:

As nova founder and the CEO of the Alton Johnson was fascinated by the fruits of the brazil he got an idea to open a new fruit flavor in the American market and as the new fruit flavors of the Brazilian juices was technically his own its lead t the creating and development and the communication of the abstract and visual ideas. And thereby binding the concept to the reality.

8 0

3 years ago

Casey is the 12% marginal tax bracket, and Jean is in the 35% marginal tax bracket. Their employer is experiencing financial dif

larisa [96]

Answer:

Casey would prefer option 1; that he pays the premiums ($8,000). Even if Casey cannot deduct his insurance premiums as medical expenses, his income will only be reduced by $8,000. If he decided to take option 2, his income would be reduced by $8,800 (= $10,000 - 12%), so he is saving $800 by taking option 1.

On the other hand, Jean would prefer option 2; that her salary is reduced by $10,000 and her employer pays the premiums. By choosing option 2, Jean is going to lose $6,500 (= $10,000 - 35%). If she chose option 1, her income would be reduced by $8,000, so she is saving $1,500 by choosing option 2.

6 0

3 years ago