Carmen’s beauty salon has estimated monthly financing requirements for the next six months as follows: january $ 8,400 april $ 8,400 february 2,400 may 9,400 march 3,400 june 4,400 short-term financing will be utilized for the next six months. projected annual interest rates are: january 8 % april 15 % february 9 may 12 march 12 june 12 what long-term interest rate would represent a break-even point between using short-term financing and long-term financing?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.