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lisabon 2012 [21]
3 years ago
12

Which of the following statements is true if a​ bond's stated interest rate is higher than the market​ rate?

Business
1 answer:
Feliz [49]3 years ago
5 0

Answer: The bond will be issued at a premium

Explanation: If the interest rate on bond is higher than the market interest rate then the investors of such bond will get a greater benefit. Hence to get the greater benefit an investor must pay a higher value, thus, the bond will be issued at premium.

Higher interest rate means the company will pay interest to investors mare than i the general rate in market, Therefore, company can charge investors more from a more valuable asset.

Hence from the above we can conclude that the correct option is c.

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On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $200,000. The bonds are sold for $191
Verdich [7]

Answer:

a. $21,800

Explanation:

The discoun of issuance of the bond is amortized over the period until maturity. Total Interest expesne on a discounted bond is the sum of the coupon payment and the amortization of the discount amount.

Coupon payment = $200,000 x 10% = $20,000 per year

Discount on the bond = $200,000 - $191,000 = $9,000

Discount amotized per year = $9,000 / 5 = $1,800

Total Interest Expense = Coupon Payment + Amortization of Discount

Total Interest Expense = 20,000 + 1800 = $21,800

5 0
3 years ago
Wilma needed to fill a position that had been open for several weeks. she knew what her perfect candidate would be like but so f
s2008m [1.1K]
The decision making method that Wilma uses is the bounded rationality. It is a type of decision making with only a short time they acquire in deciding up decisions in which Wilma has been doing in the scenario above. This type of decision making also allows a person to decide with only the few decisions that couldn't suffice them. This decision making is being portrayed in the given scenario above.
7 0
4 years ago
Parwin Corporation plans to sell 30,000 units during August. If the company has 11,500 units on hand at the start of the month,
raketka [301]

Answer:

Production = 31000 Units

Explanation:

To calculate the production requirement for the month of August to meet the required sales and desired ending inventory, we will use the following formula,

Sales = Opening Inventory + Production - Closing Inventory

Plugging in the values we have for sales, opening inventory and closing inventory, we calculate the production to be,

30000 = 11500 + Production - 12500

30000 + 12500 - 11500 = Production

Production = 31000 Units

6 0
3 years ago
Selected financial data for Spark Enterprises follows for a production level of 120,000 units: (4 points) Total fixed costs $300
Marta_Voda [28]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Total fixed costs= 300,000

Total costs= $450,000

Units= 120,000

A) Unitary variable cost= 150,000/120,000= $1.25

B) Units= 75,000

<u>The fixed costs remain constant no matter how many units are made (between relevant ranges).</u>

Total fixed costs= $300,000

C) UNits= 160,000

Total variable costs= 1.25*160,000= $200,000

D) Units= 180,000

Total fixed costs= 300,000

Total variable costs= 1.25*180,0000= 225,000

Total costs= $525,000

6 0
3 years ago
According to the video, what are some common issues treated by Marriage and Family Therapists? Check all that apply.
ira [324]

Answer:

mental and emotional disorders, health and behavioral problems, relationship issues

Explanation:

3 0
3 years ago
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