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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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Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.
olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset        Cost        Adjusted Basis

--------------------------------------------------

Skidder   230,000      40,000

Driller       120,000      60,000  

Platform  620,000        0

-------------------------------------------------

Total         970,000      100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset =  value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

  • Skidder = 300.000 * 40.000/100.000 = 120.000

  • Driller = 300.000*60.000/100.000 = 180.000

  • Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

                        = 300.000 - (40.000 + 60.000 + 0)

                        = 200.000

6 0
3 years ago
What has the biggest impact on whether a 4 year university is affordable?
Yuki888 [10]

Answer: Federal aid

Explanation:

Federal aid helps students with the cost of tuition for everyone. It allows for students to keep out of major debt.

4 0
3 years ago
Sue spent much of her time checking inventories, processing straight rebuys, setting up displays and making sure everything is g
elena-14-01-66 [18.8K]

Answer:

(D) order taker.

Explanation:

An order taker is a salesperson who collects orders checks inventories, processes straight rebuys, sets up displays but does not make any effort to invite new customers or persuade the existing ones to increase their quantities of purchase.

7 0
2 years ago
The accountant for Murphy Company prepared the following analysis of its inventory at year end: Item Units Cost per Unit Net Rea
valentina_108 [34]

Answer:

1. $47,255

2. Dr Cost of goods sold account $1,316

Cr Inventory account $1,316

Explanation:

Please find attached detailed solution to the above questions and answers.

3 0
3 years ago
In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate
denpristay [2]

Answer:

C) democratic reforms

Explanation:

One of the things I remember when I was a little kid was watching action movies with my father and many of them had a common hero, an American soldier or spy (and James Bond even though he is British), and a common enemy, the Soviet Union or some other communist country.

That was very in the late 80s and early 90s, and probably much earlier. The world was divided into two sides, the side that favored liberty and freedom (the US) and the communist evil nations.

In economic terms, communism and command economies meant that the government controlled most of a country's resources. This had a negative effect in that only politicians and their allies lived well and were rich, while the rest of the population was poor.

But then president Reagan and premier Gorbachev got together and decided that it was time for all the nonsense to stop, and the Berlin Wall fell, the Soviet Union split up and luckily for all (except James Bond and other heroes), communism ended.

The fall of communist led to democratic and capitalistic reforms.

6 0
3 years ago
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