Assume the net swap payment is $.50 on a reverse transaction involving a 3-year oat swap. What is the market value of the swap given interest rates on zero coupon treasury bonds are 5.2%, 5.6%, and 6.0% for 1, 2, and 3 years, respectively?
A) $0.96
B) $1.10
C) $1.25
D) $1.34
D
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On July 1, 2016, Rio Corporation issued bonds with a face value of $100,000 and 12% interest payable semiannually. The bonds mature on June 30, 2021. The market rate of interest at the time of issuance was 14%, so the bonds were issued at a discount of $7,054. Using the effective interest method, the amount of discount that should be amortized by Rio on December 31, 2016, is
A) $702.35. B) $506.22. C) $493.75. D) $423.21.
Effie has been trying to reach the monthly sales bonus for over a year. She has finally realized her dream of receiving an extra paycheck this month. Gale, her boss, presented her bonus in front of the entire office. As a result, her belief in herself skyrocketed. What does this scenario suggest in terms of the relationship between intrinsic motivators and extrinsic rewards?
What will be an ideal response?
A company purchased inventory for $3,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid the shipper $300 cash for freight in. The company then returned damaged goods worth $300
The invoice was then paid eight days after the purchase. Assuming that there was no beginning inventory balance, the cost of inventory would be ________. (Assume a perpetual inventory system.) A) $2,619 B) $2,919 C) $2,700 D) $2,910
The adjusting entry to record an accrued expense is:
A. Increase an asset; increase revenue. B. Increase an expense; decrease a liability. C. Increase an expense; increase a liability. D. Decrease a liability; increase revenue. E. Increase an expense; decrease an asset.