Define Serial bond.

Q: Define breakup value

A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…

Q: How the bond convexity affects the accuracy of the firs order approximation method? What are the…

A: Convexity is a risk-management technique that may be used to assess and manage a portfolio's…

Q: On January 1, 2021, Splash City issues $370,000 of 9% bonds, due in 20 years, with interest payable…

A: A BOND ISSUE IS TYPE OF DEBT FORM OF FINANCING ON WHICH INTEREST IS PAID ON FIXED RATE OF THE FACE…

Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.7 percent, a…

A: A bond is a fixed-income instrument that pays out fixed periodic payments to the bondholders during…

Q: DMJ company's December 31 work sheet for the current period appears below. Unadjusted Adjustments…

A: Net Income refers to the income generated by the firm during the period after paying off its revenue…

Q: Define Puttable bond.

A: Puttable bond: A puttable bond is a kind of bond that offers the right to the bond holder, but not…

Q: Define symmetric hedge

A: Introduction: It is a technique that reduces risk, like currency fluctuations, stock price…

Q: Define DuPont equation

A: A Du-pont analysis is an equation which calculates the return on equity by multiplying net profit…

Q: Definition of Marco

A: Macroeconomics is the study of how the economy behaves in broad outline. It is largely concerned…

Q: Inventory records for Herb's Chemicals revealed the following: March 1, 2021, inventory: 1,350…

A: Last in, first out (LIFO) cost flow method assumes that the last units of inventory are sold first.…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: Define Pledging.

A: When we talk about pledging in terms of accounting, it is to be noted that the word pledging is…

Q: Define General ledger.

A: General ledger is the book containing the accounts and their amounts which are posted from journal…

Q: Define the term Contract Modifications.

A: Accounting: Accounting is an art of collecting, recording, summarizing and presenting the financial…

Q: You want to begin saving for your daughter's college education and you estimate that she will need…

A: The PV of an asset is its value today based on the cash flows it provides discounted at an assumed…

Q: Required: Assuming the market interest rate on the issue date is 9%, the bonds will issue at…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                                 Dr. $370000…

Q: What is a serial bond?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Define trademarks.

A:

Q: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $410,000. Record…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                           Dr. $410000…

Q: ontr

A: Definition of a Contract: A contract is a legally enforceable agreement. It might be a promise to do…

Q: Define bill-and-hold arrangement with example.

A: Bill on hold: Bill on hold transaction specifies that shipping of the product is not done by the…

Q: Define Franchise.

A: There are several forms of business like the sole proprietorship, partnership and corporation which…

Q: Describe the basic assumptions of underlie GAAP.

A: Generally Accepted Accounting Principles (GAAP): It refers to accounting principles, standards and…

Q: What is the difference between D uration and Convexity of a bond?

A: Duration measures the bond's sensitivity to interest rate changes. Convexity relates to the…

Q: Define short hedges

A: A strategy through which the potential loss reduces that occurs from the movement of the asset's…

Q: 1. Companies X and Y have been offered the following rates per annum on a $5 million 10-year…

A: SWAP is an instrument which allows an individual to switch the interest rate applicable with another…

Q: Convert the decimal or whole number to a percent. 3 1.15. 8 %

A: = [(1.15 x 8) + 3] / 8 = [9.20 + 3] / 8 = 12.20 / 8

Q: Define asymmetric hedge

A: A strategy that helps to reduce the loss which occurs from the movement of the asset's price is term…

Q: Define Express Trust.

A: The express trust refers to the contract which is derived from the donor wishes or to settlor in the…

Q: Define characteristic line

A: Characteristic line is a graphical representation of alpha (α) where alpha is the difference between…

Q: Global Motors is a U.S. corporation that purchases automobiles from European manufacturers for…

A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…

Q: Define Security Market Line (SML

A: When the cost of equity obtained from CAPM model is graphically presented, it is known as Security…

Q: Define shelf registration

A: Whenever a new issue is required to be placed in the stock market, it is required to be registered…

Q: Maria Martinez organized Manhattan Transport Company in January 2015. The corporation immediately…

A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…

Q: 2. Companies X and Y have been offered the following rates per annum on a $5 million 10-year loan:…

A: Given:     Annual Interest rates on a $5 million 10-year loan   Fixed Rate Floating Rate…

Q: Define the term breakeven point.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Define license.

A: A license is a official permission in written given by licensor to use or do for which permission is…

Q: You are looking at an investment that will pay R1 500 in 4 years if you invest R800 today. What is…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.