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melisa1 [442]
4 years ago
9

"how does an investor earn money by buying bonds at a discount"

Business
1 answer:
vredina [299]4 years ago
8 0
Your answer is from interest
You might be interested in
The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the optio
olga2289 [7]

Answer:

d.

Explanation:

Based on the information provided within the question it can be said that the correct steps that are used by the FASB in developing GAAP (generally accepted accounting principles) would be the following: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle. This collection of accounting rules was then adopted by the U.S. Securities and Exchange Commission.

4 0
4 years ago
Which TWO of the following best describe the use and characteristics of discounted cash flow methodology?
konstantin123 [22]

Answer:

The correct answer is option 1 and 4.

Explanation:

Discounted Cash Flow Methodology attempts to assign present values to an investment's expected future cash flows. It is an effective way to evaluate and compare various investment options to one another. As fixed-income securities have fixed interest payments, DCF is an effective way to compare fixed-income securities. It is also used to calculate the current market values of these securities.

The project with positive NPV is accepted or higher NPV means the project is more lucrative.

8 0
3 years ago
The Busby Corporation had a share price at the start of the year of $26.20, paid a dividend of $0.56 at the end of the year, and
Westkost [7]

Answer:

D) 13%

Explanation:

Calculation for the percentage that is closest to the rate of return of investments

First step is to find the balance amount of the share price using this formula

Share price =(End of the year Share price + End of the year dividend)-Start of the year Share price

Let plug in the formula

Share price =($29.00+$0.56)-$26.20

Share price =$29.56-$26.20

Share price =$3.36

Second step is to find the rate of return of investments

Using this formula

Rate of return of investments= Share price/Start of the year Share price

Rate of return of investments

Let plug in the formula

Rate of return of investments=$3.36/$26.20

Rate of return of investments=0.13*100

Rate of return of investments=13%

Therefore the percentage that is closest to the rate of return of investments in companies with equal risk to The Busby Corporation for this perio will be 13%

4 0
3 years ago
Which of the following best describes an opportunity cost:
MissTica

Answer:

The answer is A.

Explanation:

Opportunity cost is the cost of an action that was not chosen or selected. It is also the cost of alternative forgone. For example, Mr A has two choices - taking employment of $20,000 per annum or being self-employed (setting up a farm that will generate $25,000 per annum). He decides to go for farming. The opportunity cost here is the cost of taking the employment ($20,000).

Opportunity cost is relevant in decision making. Companies use opportunity cost when making strategic or tactical decisions. There must be an alternative to every decision which must be considered before making a decision.

Though opportunity cost is a relevant cost but it is never shown on financial statement. It is never part of financial records.

3 0
3 years ago
Question 1
Lorico [155]
The answer is D because on a resume, you want it to be very formal and adequate. Second, you want it brief and short. Third, you want it all to be relevant to the right things and to what you are giving the resume for.

I hope this helped! Brainliest? :)
6 0
3 years ago
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