Pretzelmania, inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on january 1, 2021. the market interest rate for bonds of similar risk and maturity is 8%. interest is paid semiannually on june 30 and december 31.record the bond issue and first interest payment on june 30, 2021. (if no entry is required for a particular transaction/event, select "no journal entry required" in the first account field. round your intermediate computations and final answers to the nearest whole dollar amount.)

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Aborrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. the first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 5% annual payment cap. on the reset date, the composite rate is 6%. what would the year 3 monthly payment be?

Which of the following is not an example of one of the four mail advantages of prices on a free market economy