A case ofinterestrates rise, but bond prices fell.
Interestrate changes impact on bond prices in the different economic conditions.
Base interestrate raising when uneasily economic conditions can getting decline in market interestrates.
When market interestrates decrease bond prices has increases.
Therefore, when interestrates rise, sometimes the price of bonds rises.
In addition
rate = 10%
B. baht-denominated notes are available in increments of TB50,000
∴ TB434,782,609 ÷ TB50,000 = 8,696 baht-denominated notes
coupon rate = 15% (due to its unfavorable economic conditions)
- Blades uses the CF generated by the Thai subsidiary
to pay the interest on the notes and repay the principal in 5 years(maturity)
- The yen is expected to be appreciated (vs.
Problem developed when the government raised interestrates to contain inflation. Paul Volcker of FRB led retrenchment policy, aiming to reduce inflation. This policy raised interestrate to up to 19% and caused inflation rateof 13.5% (1981) plunge to 3.2%(1983). Therefore, steep increase ofinterestrate put people with housing loan unable to redeem their loan. Since they were unable to replay
of their business in order to expand their business : Deregulation
As the competition between S&L banks became severe, expanded business, they started to lend mortgage to the people with low credit rating
Despite the increase of mortgage, no one was troubled as the price of houses
continued to rise
Problem developed when the government raised interestrates to c
the net cash flow in the CFS from one year to the next should equal the increase or decrease of cash between the two consecutive balance sheets that apply to the period that the cash flow statement covers.
e. Check the main accounting policies of your company. Choose one interesting/doubtful accounting policy. Then, comment on the chosen accounting policy.
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