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Gnom [1K]
3 years ago
6

To determine the six-month interest payment amount on a bond, you would take one-half of the market rate times the face value of

the bond.
Business
1 answer:
MrRa [10]3 years ago
3 0

Answer:

False

Explanation:

To determine the six month interest payment on a bond, you must multiply the face value of the bond times half the annual contract rate of the bond. The contract rate of the bond is the interest rate used to calculate the bond's coupon.

The market rate of the bond may or may not be equal to the contract rate. If the bond was sold at a premium, the market rate is lower than the contract rate. If the bond is sold at a discount, the market rate will be higher than the contract rate.

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What is the present value of $1000 paid at the end of each of the next 50 years if the interest rate is 6% per year?
zzz [600]

Answer:

$15,761.90

Explanation:

Given that

Amount paid at the end of each year = $1,000

Time period = 50 years

Interest rate = 6% per year

So, the present value of the annuity would be

= Amount paid at the end × PVIFA factor for 50 years at 6% interest rate

= $1,000 × 15.7619

= $15,761.90

Refer to the PVIFA table.

Basically we multiplied the amount with the PVIFA factor.

5 0
3 years ago
What are the steps involved in identificaton of risk analysis?
Charra [1.4K]

Answer:

the steps are

1.

2.

3.

4.

Explanation:

these are the steps because in order to get the analysis you need to go through these steps

7 0
3 years ago
Matt's retail store offers all its products at $2 lesser than its competitors throughout the year. The store never runs any prom
posledela

Answer:

The everyday low pricing policy is the policy that Matt's retail store is following.

Explanation:

Everyday low pricing policy is the kind of a pricing strategy in which any company or firm keeps the prices of its products at low over a long period of time rather than putting any kind of sale or promotional activities. So here the consumers don't have to wait for the sale to start, the prices are already at everyday low. An important assumption to understand here is that in this kind of pricing strategy cost of production is assumed not be changed, that is why a company is able to implement this policy over a long period of time.

So therefore as here Matt's retail store is giving $2 lesser price for its product than its competitors , it means that Matt's retail store has applied everyday low pricing strategy.

7 0
3 years ago
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percentages: Turner, 10%; Roth, 40%; and Lowe
Readme [11.4K]

Answer:

Explanation:

a) loss from selling the assets  = Total liabilities - amount not sufficient to pay for creditors = 78000 - 28000  = 50000

Loss = Assets - loss from selling the assets = 126000 - 50000 = 76000

B) allocation of loss

Turner = 76000 * 10% = 7600

Roth = 76000 * 40 % = 30400

Lowe = 76000 * 50 = 38000

C) partners capital after allocating above loss

Turner capital = 2500 - 7600 = -5100

Roth = 14000 - 30400 = -16400

Lowe = 31500 - 38000 = -6500

Contribution from partners required to pay 28000 debt :

Turner = 28000 * 10% = 2800

Roth =. 28000 * 40% = 11200

Lowe = 28000 * 50% = 14000

7 0
3 years ago
The economic theory that tax reductions will increase business growth best describes
Aliun [14]
The economic theory that tax reductions will increase business growth best describes supply-side economics. The correct answer should be B.
6 0
4 years ago
Read 2 more answers
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