Draw a diagram to illustrate the use of total return swap. Assume James wants to swap the return of $30M S&P stock portfolio to a bond fund in exchange for a return of 2% risk free rate in 6 months.

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A: A perpetual inventory system represents a means of managing inventory levels in real-time and…

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A: Gross margin represents the percentage of revenue that exceeds the direct costs of producing goods…

Q: A firm issues five-year bonds with a coupon rate of 6.1%, paid semiannually. The credit spread for…

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Q: 4. Chapter 9 Homework

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

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A: The taxpayer pays capital gain tax on the gain arising from selling the capital assets. The capital…

Q: 7. Homework Chapter 10

A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…

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A: Journal is a book used to record of day to day transactions of the business.

Q: Concord Corporation's charter authorized issuance of 96,000 shares of $10 par value common stock and…

A: The company issues either common shares or preferred shares. When the company issues these shares…

Q: Sarasota Company reported the following information for 2019: October November December Budgeted…

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A: Goodwill is an intangible asset which arises out of transactions like business combinations, mergers…

Q: 8. Homework Chapter 10

A: Common stock refers to the shares of a company which are issued by company to general public for…

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A: Adjusting entries is important for organizations to follow the accrual principle. These entries help…

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A: Disclaimer : Since you have asked multiple sub-part questions, we will solve the first three…

Q: 2. Chapter 9 Homework. Help

A: Prepare journal entry for the issuance of bonds:

Q: Tabitha sells real estate on March 2 of the current year for $308,800. The buyer, Ramona, pays the…

A: Property tax also referred to as the real estate tax is the tax calculated on the value of the…

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A:

Q: 4. Linda and Jeff each open new bank accounts at time 0. Linda deposits 6,000 into her bank account,…

A: Data given: Linda deposit=6000 Jeff deposit=4800 Interest earned in Linda's account during 6th…

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Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is…

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A: A personal retirement account (IRA) is a tax-advantageous savings account that an individual can…

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A: There are two method of inventory management: Perpetual Inventory System and Periodic Inventory…

Q: 6. Homework Chapter 10

A: March 1 Journal entry:

Q: 5. Homework Chapter 10

A: Record January 1st transaction.

Q: 3. Chapter 9 Homework

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

Q: QUESTION 7 On April 1, 2020, Balboa Company invests $50,000 in a 6-month CD that pays an annual…

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Q: Transaction exposure. International Products, Inc. has ordered 12,000 leather coats from Argentina…

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A: Depreciation is an accounting practice that distributes the expense of tangible assets throughout…

Q: 9.7 a and b2

A: Depreciation expense is an expense which is charged on fixed assets over the useful years, there are…

Q: 4. Baird Bros. Construction is considering the purchase of a machine $250,000. The machine is…

A: The net present value (NPV) of an investment helps assess if it is likely to yield a positive return…

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A: Mortgage notes payable is kind of legal promissory note which binds one to pay the mortgage with the…

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

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Q: aying of its own common stock with a fair value of $40 per share. Parent paid legal and accounting…

A: Solution: 1. Land =  $767,500 + $114,700  = $ 882,200 2.  Building and equipment = $780,000 +…