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2 years ago

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

1 answer:

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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.

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Green Grocer and Futurity Farms enter into an agreement whereby Futurity will supply Green Grocer with 200 dozen eggs every two

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Answer: a, provides 30 days' notice to futurist of its desire to terminate.

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3 years ago

The main goal of auditing internal control is Group of answer choices To allow the auditor to fix any internal control deficienc

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Answer:

To evaluate the effectiveness of controls over all relevant financial statement disclosures in the financial statements.

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The main goal of auditing internal control is to evaluate the effectiveness of controls over all relevant financial statement disclosures in the financial statements.

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3 years ago

Which of the following is NOT a step in the strategic planning process?A) defining the company missionB) setting company objecti

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Answer:

Which of the following is NOT a step in the strategic planning process?

E) evaluating all members of the value chain

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3 years ago

Assume that you finance a new car when you graduate. It will cost $120,000 and you will finance it with a 84 month contract havi

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Answer: $1942.89

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3 years ago

Consider a Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor (the number of

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Based on the above scenario, the production function is Y=K1/3L1/3H1/3.

<h3>What is production function?</h3>

The word production function is known to be an equation that is said to be the one that shows the relationship between the quantities of productive factors (that is labor and capital) that are said to be used and also the number of product that has been obtained.

Note that from the above, the equation that stands for Cobb-Douglas production function with three inputs. K is capital (the number of machines), L is labor, and H is human capital is Y=K1/3L1/3H1/3.

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2 years ago