Here is my answer. DECREASING THE MONEY SUPPLY AND RAISING THE INTEREST RATES is what happens when the Treasury Bonds are being sold by Fed on the open market. An open market is also the same with free market wherein there are only minimal restrictions. Hope this helps.
Answer:
The correct answer is 4.33%(approx)
Explanation:
According to the scenario, the given data are as follows:\
Face value = $1,000
Market price = $1,278.41
Coupon Rate = 11%
So Coupon Payment = $110
Years to maturity = 10 years
So, we can calculate the after tax cost of debt by using following method:
After Tax Cost of Debt = YTM × ( 1 - Rate of Tax)
Where, YTM = 
So, by putting the following value, we get
YTM = 0.0721
So by putting the value in formula, we get
After Tax Cost of Debt = 0.0721 × ( 1 - 0.4)
= 4.33% (approx)
Answer:
Kathy should seek quotes from various rental space providers.
Explanation:
Kathy should make a decision to rent of renovate the building based on cost. The major criteria for decision making is based on the monetary factors. Rent for the new space will be compared with the renovation cost in order to reach to a final decision.
Answer:
$180,000
Explanation:
This can be calculated as follows:
Pension cost in year 2 = Service cost + Prior service cost amortization + Interest cost - Actual and expected return on plan assets
Therefore, we have:
Pension cost in year 2 = $160,000 + $5,000 + $50,000 - $35,000 = $180,000
Therefore, Lee report should $180,000 as pension cost in its year 2 income statement.
