In Australia, the Federal and State governments can raise funds by issuing bonds, please explain in detail why they invest these bond.
The Federal and State governments raise funds by issuing bonds for different purposes.
The Fed issues bonds to take the money out of circulation. Why? To bring inflation under control. Once the bonds are issued, people have less money to spend and this stops the price of goods and services from rising.
State governments issue bonds to raise funds for infrastructural projects such as building roads, airports, etc. In an emergency situation such as a war, the government needs money for military and defense purposes. So, the government borrows money from the people by selling bonds on the promise that it pays the principal with interest in future time.
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In Australia, the Federal and State governments can raise funds by issuing bonds, please explain in...
How is the Medicaid budget approximately divided between federal and state governments? While the federal contribution was 60%, with state contribution at 40%, but now it is based on a sliding scale so less affluent states can participate. While the federal contribution is 40%, the state contribution is 60%, with extra funds from the NIH. Both federal and state contributions are 50%, with funding from Medicare so disadvantaged states can participate While the federal contribution is 100%, the payment is...
How is the Medicaid budget approximately divided between federal and state governments? While the federal contribution was 60%, with state contribution at 40%, but now it is based on a sliding scale so less affluent states can participate. While the federal contribution is 40%, the state contribution is 60%, with extra funds from the NIH. Both federal and state contributions are 50%, with funding from Medicare so disadvantaged states can participate. While the federal contribution is 100%, the payment is...
3. A company is planning to borrow funds by selling (issuing) bonds. The coupon rate on the bonds is 3%. The current market rate for similar bonds (risk, maturity, etc) is 5%. Will this bond sell at a premium, a discount, or at par? Why?
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In a paragraph or two please explain why Federal Government seeks to establish standards for employee work hours and compensation? Should the Federal Government (or state governments) regulate this area? Why or why not.
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Which of the following statements is CORRECT? Group of answer choices Firms can raise funds by issue debt. Firms can raise funds by issuing equity. Firms can raise funds by marketing effectively. Both A and B All of the above are correct.
With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.9% and will mature on this day 36 years from now. The yield on the bond issue is currently 6.1%. At...
With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.95% and will mature on this day 26 years from now. The yield on the bond issue is currently 6.45%. At...
With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.8%and will mature on this day 20 years from now. The yield on the bond issue is currently 6.4%. At what...