A30-year maturity bond has an 8.5% coupon rate, paid annually. it sells today for $871.17. a 20-year maturity bond has an 8.0% coupon rate, also paid annually. it sells today for $894.50. a bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 9.5% and 15-year maturity bonds will sell at yields of 9.0%. because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 7%a. calculate the annual return for the 30-year maturity bond over the next five years. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return % b. what is the expected return of the 20-year bond. (do not round intermediate calculations. round your answer to 2 decimal places.) expected rate of return

When used-car dealers signal the quality of a used car with a warranty, a. buyers believe the signal because the cost of a false signal is high b. it is not rational to believe the signal because some used-car dealers are crooked c. the demand for lemons is eliminated d. the price of a lemon rises above the price of a good used car because warranty costs on lemons are greater than warranty costs on good used cars

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.