Answer:
CD: 41,500
Bonds: 49,500
Explanation:
Base on the information we are given, we can create an equation system:
The total investment in bonds and certificates of deposit totals 91,000
and the amount investment on bonds are 8,000 higher than Certificates of deposit
<u>We replace the bonds of the second equation on the first equation:</u>
CD + (CD + 8,000) = 91,000
<u>And solve for certificates of deposits</u>
2CD = 91,000 - 8,000
CD = 83,000/2 = 41,500
<u>Now, we replace the CD on the second equation</u>
Bonds = CD + 8,000
Bonds = 41,500 + 8,000 = 49,500
When a bond's rating is upgraded, the bond is considered a safer investment. This will lower the yield on the bond, because the risk premium is lower. The same principle is at work if you apply for loan. You can think of your credit score as your "bond rating". The better your credit score, the more of a safe bet you are to lend money to, and the more likely you are get a lower interest rate. The same is true of bonds. The yield of a bond is inversely related to the perceived risk of the bond not being repaid.
Answer:
The definition for the problem is listed in the segment below on explanations.
Explanation:
The seven elements that will have to go along with the partnership agreement or resolution are given below:
- Name, place, as well as nature.
- Title, capital commitment, and responsibilities.
- New partner practices.
- Benefit and loss account.
- Asset withdrawal.
- Partnership liquidation.
So that the above is the right answer.
Answer:
According to the rule of 72, the time to double is (interest rate)(number of years) = 72 (approximately). Therefore, all you would have to do is 95 / 5.2 = B. 18.3 years
Explanation:
Answer:
Option (a) is correct.
Explanation:
Total income:
= Ordinary Income + Tax-exempt income + Portfolio income
= $20,000 + $8,000 + $4,000
= $32,000
Gray is a 50% partner,
Share of Gray in income = 50% of Total income
= 50% × $32,000
= $16,000
Therefore, the Gray's tax basis in Fabco on December 31, year 4 is as follows:
= Gray's tax basis in Fabco on January 1, year 4 + Share of Gray in income
= $5,000 + $16,000
= $21,000