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Tema [17]
3 years ago
13

Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn

on similar bonds (market rate).
True / False.
Business
1 answer:
Mekhanik [1.2K]3 years ago
3 0

Answer:

The correct answer is False.

Explanation:

The above statement is related to the bonds issued at a discount, where in the proposed scenario, the bonds will only be sold at a discount when the market interest rate is higher than that of the contract. When the opposite happens, the operation cannot be performed, since no benefits would be obtained.

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Your company will generate 73,000 in annual revenue each year for the next eight years from a new information database. If the a
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All franchises must provide potential franchises their ______ 10 days before an agreement is signed. This document contains exte
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A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased
weqwewe [10]

Answer:

$320.59 decrease

Explanation:

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As we know that

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= Annual inflows ÷ interest rate

Current value is

= $170 ÷ 0.082

= $2,073.17

And,

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= $1,752.58

Now change in value is

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8 0
3 years ago
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses i
o-na [289]

Answer:

From the attached excel file, we havee:

Revenue and spending income from operations variance = $4,566 Favorable

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Explanation:

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