Answer: current liability
Explanation: Callable debts are simply called bonds (an investment instrument whereby an individual or investor loans a certain amount to an organization in other to finance a project or business that yields profit) which the creditor or issuer call of or terminate a bond before it reaches maturity usually due to decline or decrease in the interest rate on investment, which could have fallen below or seem illogical given the Interst rate in the bond. As such, bonds which are Callable are reported as current liabilities even when they are not expected to be called as current liabilities should include all of an organization's debt or liabilities which should be cleared within 12 months(current fiscal year).
Hey Friend
Monopolistic competition are markets with many buyers and sellers, easy to enter and leave, but with differentiated products. Therefore, the answer is (C).
Answer:
The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.
Explanation:
A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.
In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.
Answer:
The bonds sell for $825.63
Explanation:
To calculate the price of the bond, we need to first calculate the coupon payment per period. The bonds are annual bonds so the coupon payment is per year.
Coupon Payment = 1000 * 0.057 = $57
Total periods = 15
The formula to calculate the price of the bonds today is attached.
Bond Price = 57 * [( 1 - (1+0.077)^-15) / 0.077] + 1000 / (1+0.077)^15
Bond Price = $825.63
