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Llana [10]
2 years ago
9

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These b

onds will sell at a price that is:
Business
1 answer:
sasho [114]2 years ago
7 0

As a result of the interest rate being 8% and the coupon being 7%, these bonds will sell at a price less than $500,000.

<h3>Why would the bonds sell less than $500,000?</h3>

When a bond's coupon rate is less than the market rate of interest, it is referred to as a discount bond.

This means that the bond will be sold at a price that is less than its face value amount. In this case the market rate is higher than the coupon rate so the bond will sell for less than $500,000.

Find out more on discount bonds at brainly.com/question/23265123.

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Sugarcane is vulnerable to the cane beetle, which can substantially reduce crop yields. Suppose that a new beetle‑resistant spec
Vanyuwa [196]

Answer:(1) Decrease (2) Increase (3) Decrease (4) Decrease (5) Not chanhe

Explanation: This tries to describe a free market economy,where price, quantity demanded and quantity supplied are influenced by the market forces. The improved productivity of the Sugarcane which is a major raw material for sugar production is increased,the cost of production of Sugarcane will decrease as productivity increases,the quantity supplied to the market will increase leading to decreased price for all sugar value chain. The price for Honey a sweetener will also decrease responding the increased demand for sugar but the price for textile will not change because it is not a substitute for sugar.

5 0
3 years ago
Introduction to the future value of money Aa Aa Under the concepts of the time value of money, you can determine the future valu
nika2105 [10]
So what to do hear what’s the answers
8 0
3 years ago
What is not a guideline for evaluating your working main points?
dimaraw [331]
<span>Constructing each point in many different ways is usually not a good way to make one's main points. This will only confuse the reader and give them the belief that the writer doesn't really have that much evidence to back up their main idea. Using a number of different points, while only stating them in one way makes it easier for the reader to see all the different pieces of evidence and how they fit together.</span>
4 0
3 years ago
Identify which of the following statements are true for the corporate form of organization. (You may select more than one answer
Likurg_2 [28]

Answer:

a) Ownership rights cannot be easily transferred. - True

b) Ownership rights cannot be easily transferred.  - False

c) Owners have unlimited liability for corporate debts.  - False

d) Capital is more easily accumulated than with most other forms of organization.  - True

e) Corporate income that is distributed to shareholders is usually taxed twice.  - True

f) It is a separate legal entity. It has a limited life.  - False

g) Owners are not agents of the corporation. - True

Explanation:

A corporation is an organization established by the issuance (and purchase) of shares. It is identified as a separate legal entity from the owners and the liabilities of the owners is limited to the amount invested (in form of shares or stock). Ownership rights can easily be transferred through various means. One of such means is the sale of shares or stock in the secondary market.

The company pays company income tax on income earned while the shareholders (owners) also paid tax on dividend income. It has an unlimited life and is expected to continue to perpetuity.

The board of directors, managers of the company are the agents of the corporation acting on behalf of the owners.

5 0
3 years ago
Brad, Scott, and Jake each contribute property to form BSJ Corporation. Brad contributes a building with a fair market value of
Talja [164]

Answer:

<em>The answer is $700,000</em>

Explanation:

<em>From the example given, we find the tax basis will each take in their respective BSJ stock</em>

<em>Contributions done partner wise         (All values in $)</em>

<em>Partner  Contribution Tax Share in Stock  % of Tax   Base Tax base in stock</em>

<em>Name                               Base</em>

<em>Brad         450000        100000         45%          17%       120689.7</em>

<em>Scott 100000         350000         45%          60%     422413.8</em>

<em>Jake 150000          130000         10%          22%     156896.6</em>

<em>                700000           580000                      100%     700000</em>

<em>Therefore, The Total Assets contributed will be equivalent to stock of BSJ issued = $ 700,000</em>

5 0
3 years ago
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