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Vlad1618 [11]
3 years ago
15

State Street Beverage Company issues​ $805,000 of​ 9%, 10-year bonds on March​ 31, 2017. The bonds pay interest on March 31 and

September 30. Which of the following statements is​ true?
A) If the market rate of interest is 10%, the bonds will issue at a premium.
B) If the market rate of interest is 10%, the bonds will issue at a discount.
C) If the market rate of interest is 10%, the bonds will issue at par.
D) If the market rate of interest is 10%, the bonds will issue above par.
Business
1 answer:
Citrus2011 [14]3 years ago
7 0

Answer:

Option (B) If the market rate of interest is 10%, the bonds will issue at a discount

Explanation:

Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.

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Which statement defines externality?
valentina_108 [34]
I think the correct answer from the choices listed above is option D. It would be the impact of production and consumption on unrelated third parties that best defines the term externality. It is<span> a consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.</span>
7 0
3 years ago
A public works department in a metropolitan area is looking into buying a major equipment to enhance productivity. The initial c
NARA [144]

Answer:

B. The payback is approximately three years

Explanation:

The computation of payback period for this equipment purchase is shown below:-

<u>Year              Cash flow          Cumulative cash flow</u>

0                   -$600,000             -$600,000

1                     $250,000              -$350,000

2                    $200,000              -$150,000

                 ($250,000 - $50,000)

3                    $150,000                  0

                 ($200,000 - $50,000)

4                    $100,000                $100,000

                  ($150,000 - $50,000)

5                    $50,000                  $150,000

         ($100,000 - $50,000)

Here, Cumulative cash flow in the year o is -$600,000 and as we can see that cumulative cash flow in year 3 is 0.

Therefore the payback period lies in 3 years.

7 0
2 years ago
Kirov, Inc. reports credit sales of $200,000 for the year ending December 31, 2015. The year- end unadjusted balance of its Allo
Korvikt [17]

Answer:

D. $12,000

Explanation:

Allowance for Doubtful accounts = Credit sales * Rate

Allowance for Doubtful accounts = $200,000 * 6%

Allowance for Doubtful accounts = $12,000

                       Allowance for doubtful account

Particulars                                            Particulars

Balance brought forward  $9,000     Bad debts       $12,000

Balance carried forward    $3,000  

Total                                    $12,000    Total               $12,000

Therefore, the amount to be debited to Bad debts and credited to Allowance for Doubtful accounts is $12,000.

4 0
2 years ago
Like other limited liability companies, for federal jurisdictional purposes, Rodeo Productions LLC is most likely a citizen of
Shtirlitz [24]

There are different kinds of company that exist.

This is most likely a citizen of every state of which its members are citizens.

  • Limited liability company is often set up as a form of legal protection for shareholders and owners that hinders people from being held personally responsible for their company's debts or financial losses.

In some business structures, such as corporations and limited companies, firms are registered as a seperate legal bodies. States were members are citizen connote that evey shareholders are from one locality.

Learn more about Limited liability from

brainly.com/question/14023701

7 0
2 years ago
Which of the following would be a producer? someone owning a book store someone shopping in a grocery store someone putting gas
Luba_88 [7]

Example of a producer can be regarded as someone owning a book store .

<h3>Who is a producer?</h3>

A producer can be regarded as a manufacturer of a particular product or service.

Therefore, in the case above, a producer serves as the one that own the shop, however he can decide to distribute his products to retailer.

Learn more about producer at;

brainly.com/question/12441980

#SPJ4

4 0
1 year ago
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