All categories

1 year ago

A discount bond is also called a ________ because the owner does not receive periodic payments.

Business

1 answer:

a_sh-v [17]1 year ago

3 0

A discount bond is also called a zero coupon bond because the owner does not receive periodic payments.

A discount bond is a bond that is issued for much less than its par—or face—fee. discount bonds can also be a bond currently trading for less than its face cost inside the secondary market. A bond is considered a deep-cut price bond if it's far bought at a substantially decrease price than the par fee, normally at 20% or more.

A zero-coupon bond is a bond that pays no interest and trades at a reduction to its face price. It is also known as a natural cut price bond or deep cut price bond. U.S. Treasury payments are an example of a 0-coupon bond.

Coupons are the promised hobby payments of a bond, paid periodically till the adulthood date of the bond. The coupon rate determines the quantity of every coupon fee of a bond. The coupon rate, expressed as an APR, is about by using the issuer and said on the bond certificate.

Learn more about discount bonds here brainly.com/question/16748047

#SPJ4

You might be interested in

Pink Arrangements has just completed operations for the year ended December 31, 2018. This is the third year of operations for t

Kruka [31]

Answer:

$21,000

Explanation:

Preparation of income statement

Income statement of Pink Arrangements for the year ended December 31, 2018.

REVENUE:

Service Revenue 84,000

Less EXPENSE:

Insurance Expense (2,500)

Utilities Expense (1,500)

Rent Expense (12,000)

Salaries Expense (47,000)

NET INCOME 21,000

Therefore the Income statement of Pink Arrangements for the year ended December 31, 2018 will be shows the amount of $21,000

4 0

3 years ago

Tiger Trade has the following cash transactions for the period.

Valentin [98]

Answer:

1. Ending balance of cash is $31400

Explanation:

1.

Balance of cash at the beginning of the period is $4,300

+Cash received from sale of products to customers $ 36,500

+Cash received from the bank for long-term loan 41,500

-Cash paid to purchase factory equipment (46,500 )

-Cash paid to merchandise suppliers (11,300 )

+Cash received from the sale of an unused warehouse 12,300

-Cash paid to workers (23,300 )

-Cash paid for advertisement (3,300 )

+Cash received for sale of services to customers 26,500

-Cash paid for dividends to stockholders (5,300 )

Balance of cash at the beginning of the period is $31,400

2.

Cash Flow Statement

Cash flow from Operating Activities

Cash received from sale of products to customers $ 36,500

Cash received for sale of services to customers 26,500

Cash paid to merchandise suppliers (11,300 )

Cash paid to workers (23,300 )

Cash paid for advertisement (3,300 )

Total Cash Inflow / outflow from Operating Activity 25,100

Cash flow from Investing Activities

Cash paid to purchase factory equipment (46,500 )

Cash received from the sale of an unused warehouse 12,300

Cash paid for dividends to stockholders (5,300 )

Total Cash Inflow / outflow from Investing Activity (39,500 )

Cash flow from Financing Activities

Cash received from the bank for long-term loan 41,500

Total Cash Inflow / outflow from Financing Activity 41,500

Net cash Inflow / Outflow 27,100

Balance of cash at the beginning of the period is 4,300

Balance of cash at the beginning of the period is 31,400

8 0

3 years ago

Kahn Inc. has a target capital structure of 45% common equity and 55% debt to fund its $9 billion in operating assets. Furthermo

maxonik [38]

Answer:

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

Explanation:

WACC = Weight of Equity * Cost of Equity + Weight of Debt * (1-Tax rate) * Cost of Debt

16% = 45%* Cost of Equity + 55%*(1-40%)*9%

16%-55%*(1-40%)*9% = 45%*Cost of Equity

Cost of Equity = 28.9556%

Current price of Stock = D1/(Cost of Equity - Growth)

25 = 4/(28.9556%-Growth)

Growth = 28.9556%-4/25 = 12.96%

ROE = Net income/Equity = 1.4/(45%*9)

Growth rate = (1- Payout ratio)*ROE

12.96% = (1-Payout ratio)* 1.4/(45%*9)

Payout ratio =1- 12.96%*45%*9/1.4 = 0.6252 or 62.52%

4 0

3 years ago

What best explains the time value of money? the concept is another way to explain how inflation works. it just means that it's b

Mamont248 [21]

Time value of money it's best to have money today, so it can be put to work sooner to make even more money. When you have money now, you can invest and start building interest on it. The quicker you have money, the quicker you start to grow your money and the sooner it can double, triple etc.

4 0

3 years ago

Management in Life Annabelle and Bettina share a dorm room. They like each other, but they disagree about how often to clean. Ev

Ganezh [65]

Answer:

A). Annabelle and Bettina will learn from each other .

B). The roommates will come up with a creative solution."

Explanation:

Anabelle and Bettina are involved in a 'cognitive' conflict as it occurs when they both experience a mental as well as emotional discomfort when they are confronted with the information that challenges their existing ideas or beliefs. The most likely outcomes of this situation would be that they 'both would learn from each other' by accepting each other's point of view and adapting with the new information that would help them 'reach a creative solution' to resolve their conflict over the cleaning of their room. Therefore, options A and B are the correct answers.

8 0

3 years ago