Agency bonds are issued by
A)
state and local government welfare agencies.
B)
regional agencies of multinational corporations.
C)
the U.S. Treasury.
D)
agencies of the federal government.
D
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Name and discuss the six sources of economic benefit and value creation
What will be an ideal response?
Wash N' Set Corp purchased equipment for $45,000
Total depreciation of $36,000 was recorded. On January 1, 2017, Wash N' Set exchanges the equipment for new equipment, paying $54,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange has commercial substance. What will be an ideal response
Cull Incorporated recently borrowed $250,000 from Century Bank when the prime rate was 4%. The loan was for 90 days with interest to be paid at the end of the period with a rate fixed at 1.5% above the prime rate. What is the total interest paid on this loan and what is the effective annual rate? (Assume a 365 day year.)
A) The total interest paid is $3390.41 and the effective annual rate is 5.62%. B) The total interest paid is $13,750 and the effective annual rate is 5.62%. C) The total interest paid is $13,750 and the effective annual rate is 5.55%. D) The total interest paid is $3390.41 and the effective annual rate is 1.36%.
The new issue $1,000 face value bonds due in 2030 issued by Bathtub Brewing Company are seen by investors as less attractive than other bonds offered by other businesses at the same time. The coupon rate attached to these bonds will need to be ________ than other corporate bond issues in order to attract investors.
A. lower B. higher C. the same D. not important because it is a new issue