Without money, no transaction can occur.<br> True<br> False

A company issues $100,000 face value, zero-coupon, 4-year U.S. corporate bonds on January 1, 20XO, when the market rate for simi

aivan3 [116]

Answer:

Amount = Maturity/(1+risk rate)⁴

Amount = $100,000/(1+0.12)⁴

Amount = $63,552 (Approx)

Interest payable = $63,552 x 0.12

Interest payable = $7,626 (Approx)

Interest payable (2nd period) = ($63,552+$7,626) x 0.12

Interest payable (2nd period) = $8,541 (Approx)

Explanation:

JOURNAL ENTRY

BOOKS OF (.....)

Date Account title Debit Credit

Cash a/c Dr $63,552

To Bonds payable a/c $63,552

1st-period

Bond Interest a/c Dr $7,626

To Bonds payable a/c $7,626

2nd-period

Bond Interest a/c Dr $8,541

To Bonds payable a/c $8,541

6 0

3 years ago

Suppose americans decide to save less of their incomes, reducing the ability of banks to lend to businesses. with less funds ava

zimovet [89]

<span>If Americans decides to save less, then they will not keep the money in the bank account. They will rather spend it. This will leads to deficit in the deposits of banks and as a result bank will have less lending capacity. This reduction in lending will make it difficult for businesses to get loans which will impact their production levels and hence productivity as a whole will be reduced. Therefore, reduction in saving leads to reduction in productivity.</span>

4 0

3 years ago

Which of the following statement about renting vs owning is correct

Olin [163]

Rest of the answer? There should be more

6 0

3 years ago

Read 2 more answers

Sydnee would like a chart to appear once in her report, but she is having trouble making this occur. She does not understand why

sammy [17]

Answer:

The chart is placed in a database with five groups.

Hope this helped.

7 0

3 years ago

The U.S. and China continue to spar over sociocultural issues, such as human rights, and economic and financial issues, such as

kramer

Answer:

The correct option here is option D) Mercantilism.

Explanation:

Mercantilism was a type of economic theory which was practiced around 16th - 18th century , that was based on a idea that a country's wealth and power could well be increased by increasing the exports and decreasing the imports, thus overall increasing the the trade.

This theory promotes that government should regulations on the country's economy to serve the purpose of augmenting state of power at the cost of rival country's powers. This is the same policy that China is using against U.S. in their favor to increase their monetary reserves , through a positive balance of trade.

6 0

4 years ago

Without money, no transaction can occur. True False