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melomori [17]
3 years ago
9

A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the

market interest rate on similar bonds. varies more than the market interest rate on similar bonds. exceeds the market interest rate on similar bonds
Business
1 answer:
DiKsa [7]3 years ago
8 0

A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>

Explanation:

Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.

In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.

Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.

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A law firm received $2,000 cash for legal services to be rendered in the future. The full amount was credited to the liability a
Mashcka [7]

Answer:

Revenues to be understated.

Explanation:

The accrual basis says that revenues are recognized when earned and expenses are recognized when incurred.

In this case, if the legal services have been rendered at the end of the accounting period and no adjusting entry is made there is a situation of understated revenue.

When an accountant says that an amount is understated, it means two things: The amount is not the correct amount, and  the amount is less than the true amount.

The adjusting entry that should be done is:

Debit to the liability account Unearned Service Revenue, and a credit to the revenue account Service Revenue.

8 0
3 years ago
Kubal Inc. applies overhead based on machine hours. Kubal reports the following for the year just ended: Budgeted overhead for t
Dmitry_Shevchenko [17]

Answer:

Under/over applied overhead= $21,000 overapplied

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 280,000/2,000

Predetermined manufacturing overhead rate= $140 per machine hour

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 140*2,400

Allocated MOH= $336,000

<u>Finally, the under/over allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 305,000 - 336,000

Under/over applied overhead= $21,000 overapplied

5 0
2 years ago
Sound your horn __________________. A. to have fun B. to demand the right-of-way C. when necessary to avoid collisions D. to giv
alex41 [277]
A. Sounding your horn to have fun is just absurd, and could cause an issue. Either leading to other drivers to have a scare and wonder what was the problem, or they would get angry because they'd think you're trying to be rude. So, answer A. is incorrect. 

B. Sound your horn to demand the right-of-way is extremely wrong, and incorrect. So, answer B. is incorrect. 

C. You must sound your horn when necessary in order to avoid any collisions. You must do this to help warn and prevent another driver from getting into an accident with you. Therefore, C is correct.

D. Sound your horn to give other driver a piece of your mind. This is also known as road rage, it's not worth doing since you could get distracted while driving, and could lead to serious (sometimes fatal) issues. So, answer D. is incorrect. 

So, as I said above, the correct answer is: C. W<span>hen necessary to avoid collisions 

Good luck with your studies, and I truly hope this helps!~</span>
8 0
3 years ago
Read 2 more answers
A client has an options account that is qualified to buy options and sell covered calls. The client calls his representative, te
eduard

Answer:

The correct answer is letter "B": The "Special Statement for Uncovered Options Writers" must be provided before executing the transaction.

Explanation:

A naked call is a type of strategy options traders use when writing a call option without owning the underlying assets. For this to be possible, the trader must sign an options agreement and the Registered Options Principal (ROP) must approve the account so the trader can write naked options.  

Before proceeding the "<em>Special Statement for Uncovered Options Writers</em>" must be provided.

6 0
3 years ago
Flying High Company manufactures model airplanes. During the month, it manufactured 10,000 airplanes. Each one used an average o
Semmy [17]

Answer:

a. 10,000

Explanation:

Standard material provided, for each plane 1 sheet of aluminium, therefore, material for 10,000 planes = 10,000 \times 1 = 10,000

Average sheets provided for 7,500 units of 1.5 units is not to be considered as this is actual and not standard, and not important.

As the average is based on actual results, and standard is set as based on standard capacities.

Therefore final answer is 10,000 sheets.

7 0
3 years ago
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