The credit spread of the BBB corporate bond is closest to ________
Consider the following yields to maturity on various one-year, zero-coupon securities:
Security Yield (%)
Treasury 5.0
AAA Corporate 5.2
BBB Corporate 5.8
B Corporate 6.6
A) 0.8%
B) 1.10%
C) 1.60%
D) 0.40%
Answer: A
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Maxa Marina exchanged a boat with a cost of $80,000 (now 75% depreciated) and fair value of $25,000 for another boat with a current fair value of $27,000. No cash was paid or received. The new boat will perform the same function as the old boat, but cash flows are expected to last for 5 years longer with the new boat. At what value should Maxa record the new boat?
A) $27,000 B) $25,000 C) $20,000 D) $2,000
L. Lane received $12,000 from a tenant on December 1 for four months' rent of an office. This rent was for December, January, February, and March. If Lane debited Cash and credited Unearned Rental Income for $12,000 on December 1 . what necessary adjustment would be made on December 31?
a. Unearned Rental Income ............. 3,000 Rental Income .................... 3,000 b. Rental Income ...................... 3,000 Unearned Rental Income ........... 3,000 c. Unearned Rental Income ............. 9,000 Rental Income .................... 9,000 d. Rental Income ...................... 9,000 Unearned Rental Income ........... 9,000
An agreement is created when the offeree receives the offer
Indicate whether the statement is true or false
Which of the following relates only cash and near-cash items to current liabilities?
a. Accounts receivable turnover b. Inventory turnover c. Acid-test ratio d. Debt to equity ratio