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2 years ago

Explain what determines whether a bond is issued at a discount or a premium.

1 answer:

4 0

The difference between a bond's coupon rate and the market rate of interest determines whether a bond is issued at a discount or a premium. When the coupon rate is lower than the market rate of interest, the bond is issued at a discount. When the coupon rate is higher than the market rate of interest, the bond is issued at a premium.

In finance, a bond is a type of protection below which the company (the debtor) owes the holder (the creditor) a debt, and is obliged – relying on the phrases – to repay the critical (i.e. quantity borrowed) of the bond at the maturity date in addition to the hobby (known as the coupon) over an exceptional amount of time. interest is commonly payable at constant periods.

Bonds and stocks are each security, but the main distinction between the 2 is that (capital) stockholders have an equity stake in a business enterprise (i.e. they're proprietors), even as bondholders have a creditor stake within the company (i.e. they're lenders).

Learn more about Bonds here: brainly.com/question/25965295

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Which is not an object to taxation?

valkas [14]

Transaction public property

Exemption of the government

7 0

3 years ago

Larry Ellison starts a company that manufactures high-end custom leather bags. He hires two employees. Each employee only begins

Degger [83]

Answer:

12.55 days

Explanation:

Provided information

Number of employees 2

Average production time=1.8 days

Standard deviation=2.7 days

Inter-arrival time= 1 day

Coefficient of variation= 1 day

Standard deviation of inter-arrival time= 1 day

The coefficient of variations

Inter-arrival coefficient of variation

$C_{vi}=\frac {\sigma}{T}$ where $\sigma$ is standard deviation of inter-arrival time, T is inter-arrival time and $C_v$ is coefficient of variation of inter-arrival time

$C_{vi}=\frac {1 day}{1 day}=1$

Production time coefficient of variation

$C_{vp}=\frac {2.7}{1.8}=1.5$

Total utilization time

$U=\frac {T}{n*T_i}$ where T is the time of production, n is number of employees, U is utilization, $T_i$ is inter-arrival time

$U=\frac {1.8}{2*1}=0.9$

Therefore, utilization time by 2 employees is 0.9

Expected average waiting time

$T_e=(\frac {T}{n*T_i})*0.5(C_{vi}^{2}+C_{vp}^{2})*(\frac{U^{\sqrt{2(n+1)}-1}}{1-U})$

Where $T_e$ is expected average waiting time and the other symbols as already defined

Substituting 1.5 for $C_{vp}$ , 1 for $C_{vi}$ , 0.9 for U, 2 for n, 1 for $T_i$ and 1.8 for T

$T_e=(\frac {1.8}{2*1})*0.5(1^{2}+1.5^{2})*(\frac{0.9^{\sqrt{2(2+1)}-1}}{1-0.9})$

$T_e=0.9*1.625*8.583709=12.55367 days$ and rounding off to 2 decimal places we obtain 12.55 days

Therefore, expected duration between order received and beginning of production is approximately 12.55 days

7 0

3 years ago

6. Bronco Co. is a U.S.-based MNC that has subsidiaries in Spain and Germany. Both subsidiaries frequently remit their earnings

Hatshy [7]

Answer:

Cash outflow of $579,500

Explanation:

Net cash flow is the sum of all cash inflow and outflows of the company.

In this question the company has cash outflow from Spain and inflow from Germany.

As per given data

Cash flow from Spain subsidiary = €5,000,000 outflow

Cash flow from German subsidiary = €4,500,000 inflow

Net cash flow to parent company = - €5,000,000 + €4,500,000

Net cash flow to parent company = - €500,000

The currency is converted using the exchange rate of $1.159 per euro.

Net cash Flow in U.S. dollars = - €500,000 x $1.159 per euro

Net cash Flow in U.S. dollars = - $579,500

3 0

4 years ago

A customer buys shares of a stock that had its initial public offering 5 years ago. Which statement is TRUE regarding prospectus

Luda [366]

Answer:

A prospectus is not required because the initial public offering happened 5 years ago

Explanation:

A prospectus is a legal document which is to be filled by Securities and Exchange Commission (SEC) that reflects the details with respect to the investment offering to the public in terms of stocks, bond, mutual funds, etc

On the other hand the initial public offering is the offering done by the company for the first time to the public related to the investment

Since in the question it is mentioned that the customer purchased the shares of stock but its initial public offering is done 5 years ago so no prospectus is required

3 0

4 years ago

Suppose the downward sloping labor demand curve shifts rightward in a labor market with a single employer (monopsony). What happ

4vir4ik [10]

Answer:

Equilibrium wage increase
Level of employment increase

Explanation:

A shift rightward in the labor market of a single employer would imply that the employer wants more labor. They will therefore increase the wages that they are paying their labor to entice more labor and the level of employment in the industry will increase as the employer hires more people.

Graphically speaking, when the labor demand curve shifts right, it will intersect with the labor supply curve at a higher equilibrium wage. The quantity of labor will also increase as it goes to a new equilibrium point.

7 0

3 years ago