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1 year ago

When a bond contract rate is less than the current market rate on the date of issuance, the bond will be sold at a(n)?

1 answer:

7 0

When a bond contract rate is less than the current market rate on the date of issuance, the bond will be sold at Discount

Discount = Contract rate is less than the market rate.

What is meaning of discount and its types?

When a reduction in the amount is allowed in order to encourage more purchase or to have an on time payment is referred to as discount. Discount are classified as: Trade discount: The discount which is allowed when purchases are made in large quantity is known as trade discount.

Contract rate:

The contract rate; also called the coupon rate, stated rate, or nominal rate; is the interest percentage listed on the face of a note or bond. In other words, this is the interest rate that will be paid on the principle balance for the life of the note or bond.

Learn more about bond contract rate:

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Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $8; outstanding, 3

Illusion [34]

Answer:

common stock dividends 9,600 // 0.32 EPS

preferred stock dividends 4,800 //0.8 EPS

preferred stock dividends 14,400 // 2.4 EPS

common stock dividends 51,600 // 1.72 EPS

preferred stock dividends 14,400 // 2.4 EPS

Explanation:

preferred stock 6,000 shares x $10 each x 8% = 4,800

If noncumulative then:

14,400 - 4,800 = 9,600 for common stock

EPS:

4,800 / 6,000 = 0.8 PS

9,600 / 30,000 = 0.32 CS

if cumulative:

4,800 x 3 years (2016 // 2017 and the current year 2018) = 14,400

EPS

14,400 / 6,000 = 2.4 PS

if dividends are 66,000 rather than 14,400

66,000 - 14,400 = 51,600

EPs 51,600 / 30,000 = 1.72

4 0

3 years ago

The graph shows excess demand. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi

Tema [17]

Answer:

The price of goods needs to be increased.

Explanation:

Excess demand occurs when the quantity demanded is higher than the quantity supplied. This happens when the price of the good is lower than the equilibrium price. This can happen naturally in the market, or can happen if the government imposes a binding price floor.

The best way to solve excess demand is to raise the price, in order to reach equilibrium. Once in equilibrium, the price will coordinate the quantity supplied and the quantity demanded so that they're roughly equal.

7 0

3 years ago

Read 2 more answers

If the marginal product of labor is increasing, the marginal cost of output must be

SVETLANKA909090 [29]

Your answer would be, If the Marginal Product of labor increases/rises, The Marginal Cost of Output FALLS.

If the Marginal Product of labor Falls, The Marginal Cost of Output RISES.

Hope that helps!!!

4 0

3 years ago

Warner Corporation purchased a machine 7 years ago for $405,000 when it launched product P50. Unfortunately, this machine has br

maxonik [38]

Answer:

1. $46,550

2. $405,000

3. $450,600

Explanation:

1. Computation of differential cost regarding the decision to buy the model 200

Differential cost = Cost of a new model 300 - Cost of a new model 200

Differential cost = $396,350 - $349,800

Differential cost = $46,550

So, the differential cost regarding decision to buy model 200 is $46,550.

2. Sunk costs are the costs which are already incurred by the entity in the past and which are not relevant to decision made today. In this case, sunk cost is the cost of the machine purchased seven years ago for $405,000.

3. Opportunity cost is the profit forgone by chosen alternative course of action. In this case, the Opportunity cost regarding the decision to invest in the model 200 machine is $450,600.

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3 years ago

____ can be defined as the degree to which an obtained measure represents the true level of the trait being measured.

Debora [2.8K]

Answer:

let try validity as the rightful answer.

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3 years ago