1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What may happen if your job does not require you to use the aptitudes you possess?​
Viktor [21]

Answer:

<u>they will be underused and learning new interests may become necessary.</u>

<u>Explanation:</u>

Aptitudes usually refer to a person's inborn abilities or talents which include their mental and physical skills.

For example, If Mr. John knows how to sing but finds himself working as an IT specialist for a Security company, there is a high tendency that he will underuse his singing abilities and be more interested in learning IT skills than if he was working for a Radio station.

8 0
3 years ago
Bonita Industries had 205000 shares of common stock, 19100 shares of convertible preferred stock, and $1496000 of 5% convertible
s2008m [1.1K]

Answer:

EPS is $2.8 per share

Diluted EPS is $2.4 per share

Explanation:

Basic Earning per share is calculated dividing Earning for the year excluding preferred dividend by weighted average number of shares.

Basic EPS = (Net Income - Preferred dividends) / Weighted Average numbers of share

Basic EPS = ($592,000 - ( 19,100 x $0.9 ) / 205,000 = $2.8 per share

Diluted earning per share is calculated by adjusting all the convertible share options or securities in the outstanding share.

Diluted EPS = (Net Income - Preferred dividends) / Diluted numbers of share

Diluted EPS = ($592,000 - $17,190) / ( 205,000 + 39,000 )

Diluted EPS = $2.4 per share

All  the option given are inconsistent with data given.

8 0
3 years ago
Blank is the best solution for preventing intoxication
brilliants [131]
Just don't drink ;)
That will prevent intoxication























4 0
3 years ago
Read 2 more answers
What is the yield to maturity of a bond that as a face value of $1,000, is currently selling for $980, has a 5% coupon (paid sem
Ghella [55]

Answer:

5.47%

Explanation:

The computation of yield to maturity is shown in the attachment:

Given that

FV = $1000

PV = ($980)

PMT = 5% ÷ 2 × 1,000  = $25

Number of years = 5 years × 2 =  10 Years

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula, the yield to maturity is

= 2.73 × 2

= 5.46%

Therefore with the help of spreadsheets (as attached),  we could explain in a better manner.

7 0
3 years ago
What happens when products and resources become less available
Pani-rosa [81]
When a product is scarce, consumers are faced with conducting their own cost-benefit analysis; a product in high demand but low supply will likely be expensive. ... This means that a consumer should only purchase the product if they see a greater benefit from having the product than the cost associated with obtaining it.
6 0
2 years ago
Other questions:
  • Ming, a global business person, had a conversation with a local shop owner in his city. The shop owner asked Ming about the chal
    14·1 answer
  • Annuity payout option allows the policyowner to choose a pre-determined number of benefit payments?
    15·1 answer
  • Good buys has current assets of $2,500,000 and current liabilities of $1,000,000. if they issue $50,000 of new stock, what will
    8·1 answer
  • Rank the 1040 forms in order from simplest to most complex. a. 1040-A, 1040-EZ, 1040 b. 1040-EZ, 1040, 1040-A c. 1040-EZ, 1040-A
    9·2 answers
  • Two Brothers Moving prepared the following sales​ budget: Month Cash Sales Credit Sales March $ 19 comma 000 $ 5 comma 000 April
    5·1 answer
  • Which of the following mathematical equations is used to calculate a predetermined overhead rate? a.Predetermined Overhead Rate
    11·1 answer
  • When a Democrat is elected as president, business leaders expect that the corporate profits tax will be increased. Most likely,
    6·1 answer
  • What are the advantages of being a member of World Trade Organization​
    11·1 answer
  • Geralds manufacturing firm sold goods worth $6000 to some customers on credit in the month of January. His customers plan to pay
    14·1 answer
  • The asymmetric information problem _____
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!