A 5-year zero-coupon bond must have a price that is _________________ a 10-year zero-coupon bond.

A. higher than

B. lower than

C. equal to

Janes pizzeria issued 10-year bonds one year ago at a coupon rate of 8.75 percent. If the YTM on these bonds is 7.25 percent, what is the current bond price?

On January 1, Year 1, Dayden Company as lessee signed a five-year noncancelable equipment lease with annual payments of $100,000 beginning December 31, Year 1. Dayden Company treated this transaction as a capital lease. The five lease payments have a present value of $379,000 at January 1, Year 1, based on interest of 10%. What amount should Dayden Company report as interest expense for the year ended December 31, Year 1?

Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much cash did Martin, inc receive on January 1 year 1?

Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much interest will Martin inc pay bondholders on June 30, year 1?

Martin inc issued $15,000,000 of 3%, 10 year bonds at 98%, on January 1st Year 1. Interest is payable semiannually on June 30 and December 31. How much interest will Martin inc pay bondholders over the 10 years?

On November 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The second monthly payment is made on December 31, Year 1. How much of the second payment made on December 31, Year 1, represents interest expense? A. $400. B. $1,996. C. $2,000. D. $4,000.

On March 31, 20X8, your calendar year company takes out a 3-year insurance policy with a premium of $5,000 per year. The entire $15,000 is paid in advance on March 31, 20X8 and is recorded as prepaid insurance. On December 31, 20X8, you discover that the adjusting entry debited Insurance Expense for $5,000 and credited Prepaid Insurance for $5,000. Your correcting journal entry will: debit Prepaid Insurance for $1,250; credit Insurance Expense for $1,250 debit Prepaid Insurance for $3,750; credit Insurance Expense for $3,750 debit Insurance Expense for $1,250; credit Prepaid Insurance for $1,250 debit Prepaid Insurance for $5,000; credit Insurance Expense for $5,000 debit Insurance Expense for $3,750; credit Prepaid Insurance for $3,750 not be necessary because the original adjusting entry was correct

On June 1, Year 1, Company X paid $7,200 for a three-year insurance policy that became effective on that same date.
$_________ Year 1 Insurance Expense
$_________ Insurance Payable at Dec. 31, Year 1 [If none, so state.]
$_________ Prepaid Insurance at Dec. 31, Year 1 [If none, so state]
On April 1, Year 2, Paul added an additional policy when the firm paid $2,400 for a two-year policy that became effective on that same day.
$_________ Year 2 Insurance Expense
$_________ Prepaid Insurance at Dec. 31, Year 2 [If none, so state.]
$_________ Insurance Payable at Dec. 31, Year 2 [If none, so state.]
$_________ Cash paid for Insurance in Year 2

A life insurance company sells a $150,000 one year term life insurance policy to a 21-year old female for $150. The probability that the female survives the year is .999724. Find the expected value for the insurance company.

On March 31, 20X8, your calendar year company takes out a 3-year insurance policy with a premium of $4,000 per year. The entire $12,000 is paid in advance and is recorded as prepaid insurance. At year-end 20X8, you discover that the adjusting entry debits Insurance Expense for $4,000 and credits Prepaid Insurance for $4,000. If you do not correct this, assets will be understated and net income will be understated assets will be overstated and net income will be overstated everything will be fine. Since the original adjusting entry was correct, no correction needs to be made. assets will be overstated and net income will be understated assets will be understated and net income will be overstated