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1 year ago

For a bond issue which sells for less than its face amount, the market rate of interest is?

1 answer:

7 0

For a bond issue which sells for less than its face amount, the market rate of interest is higher than the rate stated on the bond.

Bonds can be sold for more and less than their par values because their interest rates change depending upon the market conditions. Like most fixed-income securities, bonds are highly correlated to interest rates. Thus, when interest rates go up, a bond's market price will fall and vice versa.

The actual market value of a bond may not be reliably as indicated by its face value because there are many other influencing forces at play, such as supply and demand in the market.

Hence, when the price of a bond goes above its face value, it is said to be a premium bond, and when the price is below its face value, it is known as a discount bond.

To learn more about bonds here:

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Which term describes the situation wherein a jury fails to reach a unanimous verdict?

mojhsa [17]

Hung jury is the answer
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2 years ago

In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the

Vitek1552 [10]

Answer:

The kind of corporate takeover technique implemented in the film is proxy fight.

Explanation:

A proxy fight is termed as a technique where two corporate factions ask the stakeholders for the proxy votes such that the right of voting is transferred.

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2 years ago

The Balance sheet of Mister Ribs Restaurant reports current assets of $30,000 and current liabilities of $15,000.a. Calculate th

Pani-rosa [81]

Answer:

Current Ratio = 2; Yes

Explanation:

First, to solve for current ratio, simply divide the current assets by the current liabilities.

So the current ratio would be $30,000 / $15,000 resulting to 2

Now, a current ratio greater than one means that Mister Ribs will be able to pay its current liabilities as they come due in the next year.

However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s liquidity or solvency.

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2 years ago

Jared Beverage Corporation uses a process costing system to collect costs related to the production of its celery flavored cola.

Alex787 [66]

Answer:

$63,000

Explanation:

The computation of cases of cola were completed and transferred to Finished Goods Inventory during January is shown below:-

Completed and transferred to finished goods inventory is

= Case of cola as on Jan 1 work in process + completed & transferred out - ending work in process as on Jan 31

= $5,000 + $65,000 - $7,000

= $63,000

Hence, the number of cases of cola is $63,000

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2 years ago

The Nobel Prize-winning economist Paul Samuelson argued that contrary to the standard interpretation, in certain circumstances t

Oxana [17]

Answer:

True

Explanation:

The theory by Paul Samuelson postulated that trade liberalisation makes a rich country worse off when trading with a poor country.

Paul Samuelson being the American that won the Nobel Peace Prize in Economics, was also called the Father of Modern Economics.

He authored the best-selling economics textbook: Economics: An Introductory Analysis, which is considered an authority in Keynesian Economics.

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2 years ago

Read 2 more answers