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Westkost [7]
3 years ago
5

A bond issue with a face amount of $1,200,000 bears interest at the rate of 9%. The current market rate of interest is 10%. Thes

e bonds will sell at a price that is:
Business
1 answer:
katrin [286]3 years ago
7 0

Answer: The selling price of the bond will be less than $1,200,000

Explanation:

From the question, we are informed that a bond issue with a face amount of $1,200,000 bears interest at the rate of 9% and that the current market rate of interest is 10%.

Since the market rate is 10% which is higher than coupon rate of 9%, this means that the market price for the bond will be smaller than the bond's face value.

Therefore, the selling price of the bond will be less than $1,200,000.

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Repurchase by the company of its own common stock $ 41,000 Sale of long-term investment $ 60,000 Interest paid to lenders $ 15,5
EleoNora [17]

Answer:

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Explanation:

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3 years ago
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Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cas
baherus [9]

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