A bond was issued at a par value of $1,000 when the interest rate for similar bonds was 8%. Presently, new bonds issued with a similar creditworthiness have a 10% interest rate. Which of the following is most likely to be true about the bond?
A. It is currently selling for a premium.
B. It is currently selling at a discount.
C. It is currently selling at par.
D. It is likely to be retired.
E. The bond’s coupon rate increases.
Answer: B
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A company purchased an equipment system for $325,000 on January 2. The company expects the equipment to last for eight years or 81,250 hours of operation, with no estimated salvage value. During the first year, the equipment was in operation for 8,000 hours, while in the second year, the equipment was in operation for 8,700 hours. Compute the depreciation expense relating to the equipment for Year 1 and Year 2 using the following depreciation methods: a. Straight-line.b. Double-declining-balance.c. Units-of-production.
What will be an ideal response?
Which of the following is not a lawmaking body but is so influential that many of its voluntary rules, such as the Incoterms, are accepted as the global standard in international business?
a. International Chamber of Commerce b. International Court of Justice c. The United Nation's General Assembly d. The World Trade Organization
Florence borrows $1,500 from Fremont, leaving her gold necklace with Fremont as collateral. Two weeks earlier, Florence had borrowed $1,000 from Corner Bank. Florence signed a security agreement and a financing statement giving Corner Bank a security interest in the same gold necklace. The financing statement is filed in the appropriate location. If Florence defaults on both loans, which creditor
has the superior rights to the necklace? a. Fremont, because his loan was the first to attach. b. Fremont, because possession takes priority over filing. c. Corner Bank, because Fremont did not perfect his interest. d. Corner Bank, because Fremont did not have a written security agreement.
At the time of the Games, VisitBritain came up with an etiquette guide for interactions with visiting foreigners. What was it called?
a. GREAT b. Delivering a First Class Welcome c. Delivering a GREAT Welcome d. Welcoming the World