Answer:
The Answer is B) Rises in the secondary market decreases.
Explanation:
When the coupon rate on newly issued bonds<u> decreases</u> relative to older, outstanding bonds, the market price of the older bond rises in the <u>secondary market.</u>
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A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate
For example, a $2,500 bond with a coupon of 10% pays $250 a year. Typically these interest payments will be semiannual, meaning the investor will receive $250 twice a year.
If two bonds offer different coupon rates while all of their other characteristics (e.g., maturity and credit quality) are the same, the bond with the lower coupon rate generally will experience a greater decrease in value as market interest rates rise.
Bonds offering lower coupon rates generally will have higher interest rate risk than similar bonds that offer higher coupon rates.
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Answer:
Manufacturing overhead cost applied= $280,720
Explanation:
Giving the following information:
Plantwide predetermined overhead rate of $23.20 per direct labor-hour.
Estimated $278,400 of total manufacturing overhead cost.
Estimated activity level of 12,000 direct labor-hours.
The company incurred actual total manufacturing overhead costs of $269,000 and 12,100 total direct labor-hours during the period.
Manufacturing overhead cost applied= actual direct labor hours* predetermined overhead rate
Manufacturing overhead cost applied= 12100* 23.20= $280,720
Answer:
Identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin.
Explanation:
Target costing refer to an act of setting a target cost by deducting from a competitive market price a desired profit margin. A target cost is the targeted maximum cost that is allowed to be incurred on a product.
The aim of the target costing to ensure that cost is reduced to a desired level determined through the process of target costing.
By implication, the purpose of the target costing is to identify a particular cost of production for a good that will produce the desired profit margin when the good is sold.
Therefore, the correct option form the question is that target costing is directed toward identifying the amount by which the costs of existing products must be reduced to achieve a target profit margin.
The answer is (a.) have access to the accounting record for that asset
A company custodian is a financial institution responsible for the customer’s security for safekeeping to minimize the risk of their loss or theft. The custodian also holds securities and other electronic or physical form of assets.
Answer:
$9802
Explanation:
The total return is the sum of the dividend value and the increase in share value:
return per share = $0.70 +($35.26 -32.58) = $3.38
Then the return on 2900 shares is . . .
2900 × $3.38 = $9802
