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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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Abba, Inc. has developed the following standards for one of its products: Direct materials - 1/2 pound at $6.00 per pound Direct
Sergeu [11.5K]

Answer:

The answer is $11 per unit.

The standard cost card for this product would show a cost per unit of $11.

Explanation:

The workings are attached.

The formula used is as follows:

<u>Standard cost per unit of a product = direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit.</u>

<u></u>

6 0
2 years ago
Selected accounts from the ledger of Garrison Company appear below. For each account, indicate the following:
joja [24]

Answer & Explanation:

Account                 Type of Account         Increase side  

Supplies                     Asset                        Debit

Retained Earnings    Capital                      Credit

Fees Earned             Revenue                    Credit

Accounts Payable     Liability                      Credit

Salary                          Expense                   Debit

Common Stock           Asset                        Debit

Account Receivable     Asset                        Debit

Equipment                    Asset                       Debit

Notes Payable              Liability                    Credit  

8 0
2 years ago
If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate
Mariana [72]

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

3 0
2 years ago
Which of the following phrases BEST defines the word import?
Lubov Fominskaja [6]
<span>to obtain a product from another country </span>
8 0
3 years ago
Read 2 more answers
The following income statement is provided for Vargas, Inc. Sales revenue (2,600 units × $20.10 per unit) $ 52,260 Cost of goods
leva [86]

Answer: 3.91

Explanation: We can calculate operating leverage by using following formula:-

operating\:leverage=\frac{contribution}{net\:income}

where,

contribution = sales - variable cost

                     =  sales - ( variable cost of goods sold + supplies )

                     =  $52,260 - ( $26,260 + $5460)

                     = $20,540

Now, putting the values into equation we get :-

operating\:leverage=\frac{20,540}{5,240}

                                          = 3.91

3 0
3 years ago
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