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3 years ago

The market interest rate related to a bond is also called the

Business

1 answer:

salantis [7]3 years ago

5 0

Answer:

effective interest rate

Explanation:

The effective interest rate is the rate that an investor actually earns from investing in a bond. The effective interest rate is usually different than the interest rate stated on a bond (e.g. coupon rate).

It is also called market interest rate because bonds are sold in secondary markets at a different price than face value (usually bonds are sold at a premium or at a discount). That price at which the bonds are sold determine if the effective interest rate will be higher or lower than the stated interest rate of the bond.

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Scarcity is the most basic problem in economics true or false

Rasek [7]

True.

I hope this helps! :)

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3 years ago

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The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking u

Crank

Answer:

-$414,444.44

Explanation:

The computation of the net present value is shown below:

Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)

= -$1,570,000 + $104,000 ÷ (12% - 3%)

= -$1,570,000 + $1,155,555.56

= -$414,444.44

Hence, the net present value is -$414,444.44

Since the net present value comes in negative so the project is rejected

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3 years ago

Why do you think researchers chose to begin with cigarette smokers opposed to other types of addiction ?

tester [92]

Since smoking is very popular. (1 billion people smoke) It would be very important if they start with researching about smoking, so they can hopefully reduce the amount of smokers in the world.

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3 years ago

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Earnhardt Driving School's 2008 balance sheet showed net fixed assets of $4 million, and the 2009 balance sheet showed net fixed

harkovskaia [24]

Answer:

Net capital spending = $2,985,000

Explanation:

There are two financial years in consideration

They are 2008 and 2009

Closing values of 2008 = Opening values of 2009

Now, closing value of net assets at 2008 = $4 million

Closing value of net assets for 2009 = $6.2 million

Net capital spending = Gross fixed assets at year end - Opening fixed assets

Gross fixed assets = Net Value + Depreciation

= $6.2 million + $785,000

= $6,985,000

Thus, Net capital spending in 2009 = $6,985,000 - $4,000,000

= $2,985,000

4 0

3 years ago

The USDA maintains ethanol has an impact on food prices. "Higher ethanol production definitely and directly raises the price of

aleksklad [387]

Answer:

new corn farmers will enter the market and decrease the market price.

Explanation:

In regards to the information provided, it can be said that in a long term perspective if the production of ethanol keeps increasing then new corn farmers will enter the market and decrease the market price. This is because as ethanol production increases, so does the price of corn. This will continue up to a certain point were profitability for farmers is high and many new farmers will enter the market hoping to profit from the corn as well. All these new farmers will drastically increase the production of corn and as the supply of corn rises the prices will begin to fall.

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3 years ago