Answer:
Interest expense and a gain.
Explanation:
US GAAP allows companies to report their financial assets or financial liabilities at their fair market value, this is called the fair value option.
If interest rates increase, and of course the coupon rate is fixed, then they value of bonds will decrease. The same logic applies to bonds sold at a discount.
In this case, the company must report an interest expense in the income statement regardless of what happens to the interest rate, since the company must pay the coupon rate.
Since the price of the bonds decreased, then the company's liabilities (bonds payable) decrease, so the company must report a gain = bond's previous value - bond's current value
<u>Solution and explanation:</u>
<u>Given data:
</u>
Ask price: 98.4062, bid price: 98.2812, par value of the bond: $10,000
<u>The following formula is used in order to calculate the actual value of the bond
</u>
The ask price will be used while calculating the actual value of the bond and the par value of the bond will be used
Ask price will be multiplied with par value of the bond and divided by 100
= $9840.62
Therefore, the par value as per the above calculation is $9840.62
Answer:
The correct option is B
Explanation:
Inflation is the measure which is quantitative in nature as the rate at which the average level of price of the selected goods and services in the economy rises over the year or time period.
It is stated or expressed in terms of percentage, because it indicates or explains the decrease or fall in the purchasing power of currency of the nation.
So, if the inflation is higher than what is expected, then the creditors who invested their money, will receive lower rate of interest then they anticipated as their is decrease of fall in the currency of the nation.
To combat this stereotyping the HR director has decided to<u> "adopt more transparent practices".</u>
Nowadays, pay transparency is an interesting issue among HR and compensation experts. Pay transparency doesn't need to be a win or bust approach where everybody knows every other person's compensation. Or maybe, we trust transparency is a range. It's how much an association will examine its general pay rehearses. Pay transparency is significantly something other than the dollar sum a business pays every worker. It's additionally being more open about how pay was resolved and giving a clarification of the organization's compensation grades.
He should use a business email and or tell them directly
