A zero coupon bond has a par value of $10,000 and a current price of $5,500. If the bond has 7 years to maturity, what is its after-tax yield to maturity for an investor paying 25% taxes? Use semiannual analysis. (Enter answer as a percentage to two decimals with no % sign)

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Q: 4. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

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Q: 2. Chapter 9 Homework. Help

A: Prepare journal entry for the issuance of bonds:

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Q: 6. Homework Chapter 10

A: March 1 Journal entry:

Q: 5. Homework Chapter 10

A: Record January 1st transaction.

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.