When the federal governments budget deficit increases, the ________ curve for bonds shifts to the ________
A) demand; right
B) demand; left
C) supply; left
D) supply; right
D
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Risk-averse investors require higher rates of return on investments whose returns are highly uncertain, and most investors are risk averse.
Answer the following statement true (T) or false (F)
Which of the following is identified to cover major unforeseen risks and, hence, are applied to the total project?
A. Time buffers B. Management reserves C. Activity reserves D. Project reserves E. Budget reserves
John while driving along a major highway, fell asleep at the wheel causing his motor vehicle to get out of control and seriously injure Toby who was also driving on the highway. Which of the following types of law will likely come into play?
A) regulatory law B) administrative law C) private law D) A and C E) A and B 2. Which of the following is NOT a recognized goal of class action lawsuits? A) to allow for greater efficiencies in the justice system B) to allow plaintiffs to share legal costs C) to allow plaintiffs to recover higher awards of damages D) to allow more litigants to have access to justice E) to deter potential wrongdoers.
On January 1, a company issues bonds dated January 1 with a par value of $340,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $353,122. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.)
A. Debit Bond Interest Expense $20,012; credit Premium on Bonds Payable $1312; credit Cash $18,700. B. Debit Bond Interest Expense $20,012; credit Discount on Bonds Payable $1312; credit Cash $18,700. C. Debit Bond Interest Expense $17,388; debit Premium on Bonds Payable $1312; credit Cash $18,700. D. Debit Bond Interest Expense $17,388; debit Discount on Bonds Payable $1312; credit Cash $18,700. E. Debit Interest Payable $18,700; credit Cash $18,700.