Abond’s credit rating provides a guide to its price. as we write this in early 2015, aaa bonds yield 3.4% and baa bonds yield 4.4%. if some bad news causes a 10% fiveyear bond to be unexpectedly downrated from aaa to baa, what would be the effect on the bond price? (assume annual coupons.)

Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?