Answer:
Advertising bis the act of raising awareness big product to consumers in order to buy more from them than other costumers
Answer:
$1,061.28
Explanation:
We need to calculate the present value of the bond using the minimum effective rate of 7.1225%
First we calcualte the present value of an annuity of $80 for 10 years


PV = $558.72
Then we calculate the $1,000 in 10 years present value


PV = $502.57
Then we add both values
$502.57 + $558.72 = $1,061.28
This will be the present value AKA market price which yields the minimun rate of 7.1225%
Your friend is in the category of people considered to have HIGH INCOME.
Friend's salary is more than $1 million and he lives off a credit card. He has high income but net worth can't be determined.
Answer:
The Money Market.
Explanation:
The Financial markets can be broadly classified into two categories: Capital Market and Money Market. This classification is based on the maturity period of Financial instruments that trade in these markets. Lets study these two types of markets in detail:
<u>Money Market</u>
It is a market in which securities with a maturity of less than one year are traded. This is highly liquid market since the investors are repaid with the invested amount within one year of time. Due to a short duration, the instruments traded in this market are exposed to lower interest rate risk. A popular example of money market instrument can be Treasury Bills.
<u>Capital Market</u>
The securities that are traded in capital market are long-term and have a maturity of more than one year. The securities of capital market offer beefy returns to the investors due to higher duration and interest rate risks. If the security is of equity nature, then the market is termed as stock market. And if the traded security is bond, then we refer to it as a bond market. Examples of capital market instruments are shares and bonds.
Answer:
a credit of $242700 to Premium on Bonds Payable
Explanation:
Based on the information given The journal entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable which is calculated as:
Premium on Bonds Payable=[($8090000*103%)-$8090000
Premium on Bonds Payable=8,332,700-$8090000
Premium on Bonds Payable=$242700
Therefore The entry to record the issuance of the bonds would include a credit of $242700 to Premium on Bonds Payable