Answer:
The carrying value decreases from the issue price to the par value over the bond’s term.
Explanation:
The carrying value of a bond is the par value or face value of that bond plus any unamortized premiums or less any unamortized discounts. The net amount between the par value and the premium or discount is called the carrying value because it is reported on the balance sheet. When a bond is issued at a premium, the carrying value is higher than the face value of the bond.
Answer:
$26,125
Explanation:
[($25,000 x 0.005) x 9 + $25,000]
=$26,125
Zach owe $26,125 as of December 31, 2019 because he did not fail to file - he failed to pay. Hence he owes the 0.5% per month or part of a month failure to pay penalty plus the already outstanding tax amount of $25,000 that he owed.
The type of Critical Thinking Questions that Ivory should ask at this point are:
- What are the assumptions?
- what are the issues and the conclusions?
- Are there fallacies in the reasoning?
- How authentic is the data presented?
<h3>What are Critical Thinking Questions?</h3>
Critical Thinking Questions are questions that make inquiries into the veracity of a claim.
They help the evaluator to maintain a logical and rational line of thoughts so that they are able to connect clearly the relationship between facts and ideas.
Learn more about Critical Thinking Questions at:
brainly.com/question/6034421
1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,
2) if the required return is less than the coupon rate the bond will sell at a premium.
Explanation:
1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.
2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.
Explanation:
an entrepreneur is always creative have ideas make best decision thinks before decision
