Bonds with relatively low risk of default are called
A) zero coupon bonds.
B) junk bonds.
C) investment-grade bonds.
D) none of the above.
C
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If $500,000 of 10-year bonds, with interest payable semiannually are sold for $494,040 based on (1) the presentvalue of $500,000 due in 20 periods at 5% plus (2) the present value of twenty $25,000 payments at 5%, thenominal or contract rate and the market rate of interest for the bonds are both 10%
a. True b. False Indicate whether the statement is true or false
Exhibit 20-5 The Baltimore, Inc entered into a five-year lease with the Waugh Chapel Company on January 1, 2016. Baltimore, the lessor, will require that five equal annual payments of $25,000 be made at the beginning of each year. The first payment will be made on January 1, 2016. The lease contains a bargain purchase option price of $12,000, which the lessee may exercise on December 31, 2020
The lessee pays all executory costs. The cost of the leased property and its normal selling price are $95,000 and $118,236, respectively. Collectibility of the future lease payments is reasonably assured, and the lessor does not expect to incur any future costs related to the lease. Present value factors for a 7% Present value of $1 for n = 1 0.934579 Present value of $1 for n = 5 0.712986 Present value of an ordinary annuity for n = 5 4.100197 Present value of an annuity due for n = 5 4.387211 ? Refer to Exhibit 20-5. If Baltimore requires a 7% annual return, what is the correct amount that should be credited to Unearned Interest: Leases on January 1, 2016, by Baltimore (round the answer to the nearest dollar)? A) $15,320 B) $18,764 C) $22,495 D) $43,236
A ____ is a group of people who come together to share information, experiences, tips, and best practices. Goals of these groups are to avoid reinventing the wheel and look for innovative ways to overcome challenges.
A. community of practice B. mentoring group C. social media group D. knowledge base
Periodic inventory systems normally require smaller safety stock than a continuous inventory system
Indicate whether this statement is true or false.