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Katarina [22]
2 years ago
12

Ou are considering a savings bond that will pay in years. if the interest rate is , what should you pay today for the bond?

Business
1 answer:
Colt1911 [192]2 years ago
5 0

A bond is a sort of security used in finance where the issuer owes the holder a debt and is required, depending on the terms, to repay the principal and interest on the bond at the maturity date.

<h3>What is Bond?</h3>

In exchange for regular interest payments, a bondholder loans money to a business or the government for a predetermined length of time. When the bond matures, the bond's issuer pays the investor their money back. A bond is a sort of security used in finance where the issuer owes the holder a debt and is required, depending on the terms, to repay the principal and interest on the bond at the maturity date.

Bonds can be classified into five categories: corporate, municipal, agency, savings, and Treasury. Each sort of bond has its own vendors, goals, purchasers, and risk-to-return ratios. Bond-based instruments, such as bond mutual funds, can also be purchased if you want to profit from bonds.

One of the key components of the American economic system is interest rates. They have an impact on borrowing costs, savings yields, and are a significant contributor to the overall return on many assets. Additionally, certain interest rates offer information about upcoming economic and financial market activities.

To learn more about Bonds refer to:

brainly.com/question/25965295

#SPJ4

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Explanation:

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On january 1, 2015, providence, inc., issues $1,000,000 of 10 percent, 5-year bonds at par value. complete the necessary journal
Shkiper50 [21]

On January 1, 2015, the date of issuance, the entry is:

2015

Jan 1

Cash                                         1,000,000  

                  Bonds Payable                                    1,000,000

On each January 1 for 5 years, beginning 2015 January 1 (ending 2020 January 1), the entry would be (Remember, calculate interest as Principal x Interest x Time):

Jan 1

Bond Interest Expense ($1,000,000 x 10% x 1)  100,000  

                  Cash                                                                               100,000

On January 1 (5 years later), the maturity date, the entry would include the last interest payment and the amount of the bond:

Jan 1

Bond Interest Expense ($1,000,000 x 10% x 1)  100,000    

Bonds Payable                                                  1,000,000  

                  Cash                                                                               1,100,000


5 0
3 years ago
Why is it important to project the first-year financial performance on a monthly basis and the subsequent yearly budgets, on a q
Likurg_2 [28]

<u>Answer:</u>

<u>To determine proper allocation of resources since the business is relatively new.</u>

<u>Explanation:</u>

Remember, by using the <em>monthly</em> forcasting method in the first year of operations, it allows for total monthly expenses to be weighed against the total monthly revenue.

However, after gathering some experience from the first year's operations, using the <em>quarterly</em> method would allow for easy comparism of the performance of preceding years. ,

7 0
4 years ago
The view that the family is an enduring social institution because of the important tasks it performs for society — economic sec
zhenek [66]

Correct/Complete Question:

The view that the family is an enduring social institution because of the important tasks it performs for society — economic security, emotional support, socialization of children — is the __________ perspective.

A. interactionist

B. feminist

C. family systems

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Answer:

D, structure-functional

Explanation:

A family is seen from structure-functional perspective because of its structure (father,mother, children) as well as its functions (economic security, emotional support, etc) to the society.

This means that the family system is a structured and working system that helps the society in different ways to ensure the well-being of the society at large.

I hope this helps.

6 0
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. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
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Answer:

B. Controllable costs

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There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
3 years ago
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