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2 years ago

when investors doubt the creditworthiness of a borrower, what should happen to the price and yield of a bond

Business

1 answer:

denpristay [2]2 years ago

7 0

Answer:

Prices go down, yield go up

Explanation:

As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield

So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up

hence, the same is to be considered

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Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $38,000,000 in cash. T

LenaWriter [7]

Answer: The Goodwill is $7,000,000

Explanation:

Purchase price. 38,000,000

Less:

Fair value of asset 48,000,000

Less: Fair value of liabilities 17,000,000

-----------------------

Fair value of net Asset. 31,000,000

---------------------

Goodwill. 7,000,000

-------------------------

Workings

Fair value of Asset = Current Asset + Property, plant and equipment + Other asset

= 14,800,000 + 30,000,000 + 3,200,000

= 48,000,000

Fair value of Liabilities = Current Liability + Long term Liability

= 6,600,000 + 10,400,000

= 17,000,000

8 0

1 year ago

Read 2 more answers

A marketing consultant, Sofia, has been studying the effect of increasing advertising spending on product sales. Sofia conducts

UkoKoshka [18]

No, because 100,000 is much greater than the values used in the experiment

Explanation:

The advertisement budget is an estimation of the company's commercial spending for a specified amount of time. More specifically, it is the capital that a organisation is able to put aside to accomplish its marketing goals.

In developing an advertisement budget, a corporation must balance the importance of the promotional dollar against the value of the dollar as known revenue.

Better promotional budgets — and campaigns — focus on consumers' desires and address their challenges, not on business concerns such as overstock elimination.

5 0

1 year ago

Breeze Inc. receives payment of $800,000 for 4 wind turbines that were delivered and invoiced on credit in the previous month. H

just olya [345]

Answer:

No impact on accounting equation of Breeze Inc.

Explanation:

Account equation: Asset = Liabilities + Shareholders' equity

Upon delivery and invoicing of the 4 wind turbines, the Breeze Inc. had recognized following journal entry:

An asset is recorded

Accounts receivable (Debit)

Sales (Credit)

Upon receipt of cash, accounts receivable is credited and cash is credited e.g. there is no impact on total assets, therefore there is no impact on accounting equation.

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2 years ago

Slack, a collaboration hub that brings people together within organizations, strives to ensure that its products and people focu

Airida [17]

Answer:

mission statement

Explanation:

A company's mission statement defines the reason why the company exists; what is its business (what product or service they provide), its objectives (or goals) and how they will reach these objectives. It should also include who's needs they are satisfying (target market).

5 0

1 year ago

Olly & Sons is a construction company. The company started the year with $90,000 in the land account. During Year 2, Olly &a

Sindrei [870]

Answer:

$124,000

Explanation:

The computation of ending balance in the land account is shown below:-

ending balance in the land account = Beginning balance of Land account + Total balance of land - Cost of land sold

= $90,000 + ($25,000 + $28,000 + $31,000) - $50,000

= $90,000 + $174,000 - $50,000

= $124,000

Therefore for computing the ending balance in the land account we simply applied the above formula.

4 0

1 year ago