Bonds with higher liquidity have to offer higher interest rates in the market since they can be easily converted into cash on short notice at or near the fair market value for that bond.?
Answer the following statement true (T) or false (F)
False
Bonds with higher liquidity offer low liquidity premium as they can be easily converted into cash in the market. So, they offer lower interest rates compared to bonds with lower liquidity. See 5-2: Determinants of Market Interest Rates
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Which of the following is not a commitment?
A) Lease B) Construction of long-term asset C) Purchase agreement D) Guarantee of debt
Finley Company has its company headquarters based in Raleigh, North Carolina, and has six individual retail stores spread throughout North Carolina and Virginia. Which of the following costs would most likely be treated as a common cost for segmented reporting purposes?
A) Lease costs for the company headquarters. B) Property tax costs for the Virginia stores. C) Direct labor costs for the North Carolina stores. D) Utilities costs for the both the Virginia and North Carolina stores.
An option has the same rights and legal effect as earnest money
Indicate whether the statement is true or false
In the current year, Norris, an individual, has $50,000 of ordinary income, a net short-term capital loss (NSTCL) of $10,000, and a net long-term capital gain (NLTCG) of $2,800. From his capital gains and losses, Norris reports:
A. an offset against ordinary income of $3,000 and an NSTCL carryforward of $4,200. B. an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,200. C. an offset against ordinary income of $2,800 and an NSTCL carryforward of $7,200. D. an offset against ordinary income of $3,000 and an NSTCL carryforward of $7,000. E. an offset against ordinary income of $10,000.