Affect affect the balance sheet and income statement

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1. How does selling available for sale securities and trading securities affect affect the balance sheet and income statement?

2. The price of a bond with 4 years to maturity that pays interest of $12 each half-year is $108. What is the current yield, the capital gains yield and the yield to maturity of this bond? What is the prevailing 4 year interest rate corresponding to this bond price?

3. Jackson just received a settlement in a lawsuit that promises two future payments of $570, the first payment at the end of the 6th year, and the second at the end of the 11 year. Jackson, being profligate, doesn't want to wait and instead wants instead to spend all of the settlement money today. What is the present value of his settlement assuming the interest rate of 5%?

Reference no: EM131859916

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