What is a credit default swap? What happens in the event of default?
What will be an ideal response?
A credit default swap is essentially a bilateral insurance contract between a protection buyer and a protection seller to protect against default on a specific bond or loan issued by a corporation or sovereign (the "reference entity"). The protection buyer pays semi-annual or annual insurance premiums to the protection seller. In return, when there is a default event, the protection seller transfers value to the protection buyer. Value is transferred either through physical settlement or cash settlement. If there is physical settlement, the protection buyer delivers the defaulted bond to the protection seller who pays the face amount of the referenced bond. If there is cash settlement, the protection seller pays the buyer the difference between the face value of the bond and the value of the defaulted bond.
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Which of the following best describes a company's financing activities?
a. Financing activities focus on the sale of products and services. b. Financing activities include selling products. c. Financing activities enable a company to acquire assets needed to run a business. d. Financing activities are represented by the revenues and expenses on the income statement.
Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold$530,000? Merchandise inventory, January 1 88,000? Merchandise inventory, December 31 103,000? Accounts payable, January 1 74,000? Accounts payable, December 31 63,000?
A. $618,000. B. $504,000. C. $545,000. D. $556,000. E. $541,000.
Selling is a very complex process, but it is easy to do on a consistent basis.
Answer the following statement true (T) or false (F)
To balance columns in a newsletter, use a/an ____ section break
A) Column B) Continuous C) Even page D) Next page