Par corporation holds 60 percent of short publishing company’s voting shares. par issued $500,000 of 10 percent (paid semiannually) bonds with a 10-year maturity on january 1, 20x2, at 90. on january 1, 20x8, short purchased $100,000 of the par bonds for $106,000. partial trial balances for the two companies on december 31, 20x8, are as follows: accounts par corporation short publishing companyinvestment in short stock $141,000 investment in par bonds $104,676bonds payable $500,000 discount on bonds payable $21,289 interest expense $55,626 interest income $8,676interest payable $25,000 interest receivable $5,000prepare the worksheet consolidation entry or entries needed on december 31, 20x8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements.

Which curve shows increasing opportunity cost as you give up more of one option? demand curve bow-shaped curve yield curve indifference curve

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

If an investment has 35 percent more nondiversifiable risk than the market portfolio, its beta will be: