Answer: in a traditional economy, decisions are based on habit and custom
Explanation:
Answer:
The correct answer is D. For general obligation bonds, the source of income backing the issue.
Explanation:
There is no requirement to disclose the source of income that supports a general obligation issue because it must be a taxing power. The MSRB requires that the type of income that supports an income bond issue be disclosed, as well as the name of the corporate guarantor of the industrial income bonds. The dates of the calls "in their entirety" must also be disclosed in the customer confirmations, as they may affect the price of the issuance according to the rules of the MSRB (the MSRB requires that if a bond quoted based on performance is negotiated with a premium, and if it is enforceable "in its entirety" on pre-established dates and prices, then the dollar price must be calculated at the date of the call instead of the expiration date, since it is most likely to be called ).
Answer:
The inflation rate of return is 3.60%
Explanation:
As we know,
Inflation rate of return = {( 1 + nominal rate of return) ÷ ( 1+ real rate of return)} - 1
= {( 1 + 15%) ÷ (1+11%)} - 1
= (1.15) ÷ (1.11)} - 1
= 1.0360 - 1
= 0.360 or 3.60%
The inflation rate of return shows a relationship between the nominal rate of return and the real rate of return. We simply divide the nominal rate of return by real rate of return
Answer:
The Journal entry and their narrations for recording the bonds retirement is shown below:-
Explanation:
The Journal entry is shown below:-
Bonds payable Dr, $70,000
Loss on redemption of bonds Dr, $3,832
($68,000 - $64,168)
To Bond discount amortization $5,832
($70,000 - $64,168)
To Cash $68,000
(Being bonds retirement is recorded)
So, for recording the early retirement of the bonds we debited the bonds payable and loss on redemption of bonds and credited the bond discount amortization and cash.
