1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Carrie is creating a personal balance sheet. The heading includes the period of time that the balance sheet represents Which cou
Lapatulllka [165]

Answer: Carrie's Balance Sheet (January 1, 2021)

Explanation:

The heading of the balance sheet should include as much as possible, the month and year of the balance sheet. It can also include the exact date.

This is done so that the Balance sheet can have a particular reference date such that stakeholders who use the balance sheet can know relate the financial performance of the company as of a certain day which would enable for better analysis.

8 0
3 years ago
Read 2 more answers
You wish to take an Excel course. You may enroll at one within your school or you may take a community class at the local librar
Ganezh [65]

Answer:community course

Explanation:

5 0
2 years ago
Why are emotionally charged events more likely to be remembered?<br>​
serious [3.7K]
Don’t know the answer but I really need points and I know you can relate to this hahahaha wish I could help.
5 0
3 years ago
This morning you purchased a stock that just paid an annual dividend of $3.10 per share. You require a return of 9.2 percent and
sergiy2304 [10]

Answer:

$2.48

Explanation:

This morining a stock was purchased.

The stock just paid an annual dividend of $3.10 per share

A return of 9.2% is required

= 9.2/100

= 0.092

The growth rate is 4%

= 4/100

= 0.04

The first step is to calculate today's price

= D1/(r-g)

=3.10× 1+0.04/0.092-0.04

= 3.10×1.04/0.092-0.04

= 3.224/0.052

= $62

The price at the end of year 3 can be calculated as follows

= today's price × (1+g)

= 62×(1+0.04)

= 62×1.04

= $64.48

Therefore, the capital gain can be calculated as follows

Price at the end of year 3-today's price

= $64.48-$62

= $2.48

Hence the capital gain is $2.48

6 0
3 years ago
Alpha Trendz, a clothing and apparel manufacturer, carefully studies information available on the Internet.It also checks comput
zheka24 [161]

Answer: (C) Planning

Explanation:

The planning stage is basically refers to the process in which the various planning and activities are held for achieving the desired result in an organization.

The main benefits of the planning is that it makes the work more efficient and systematic so we can easily develop various types of plans according to the specific process.

 According to the question, the company is in the planning stage of the sales process where the we can easily get information about the products and the services provided by the company over the internet.

 Therefore, Option (C) is correct.  

8 0
3 years ago
Other questions:
  • On May 27, Hydro Clothing Inc. reacquired 75,000 shares of its common stock at $8 per share. On August 3, Hydro Clothing sold 54
    8·1 answer
  • Waterway Industries buys a delivery van with a list price of $60000. The dealer grants a 13% reduction in list price and an addi
    10·1 answer
  • Creme Bakery just paid an annual dividend of $2.20 a share and is expected to increase that amount by 2.2 percent per year. If y
    9·1 answer
  • Markets can be missing for a variety of reasons:
    15·1 answer
  • A greenfield venture is when a company builds a subsidiary from scratch in a foreign country instead of acquiring an established
    13·1 answer
  • The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into pr
    14·1 answer
  • The amount that people are willing to pay for each additional unit of a product or service is the A. Opportunity cost B. Margina
    10·2 answers
  • land is different from other tangible assets in that its utility is not diminished by its use. this statement is
    10·1 answer
  • Recent trends show that the percentage of the labor force represented by unions has _____.
    5·1 answer
  • Make detailed Business execution plans with proper Roadmap on hospital collaboration.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!