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stich3 [128]
3 years ago
14

If the market rate of interest is greater than the contract rate of interest, the bonds will sell for a.their face amount. b.mor

e than their face amount. c.less than their face amount. d.None of these choices are correct.
Business
2 answers:
sleet_krkn [62]3 years ago
5 0

Answer:

C. Less than their face value

Explanation:

Contract rate also known as coupon rate is the is the interest percentage rate stated on the face of a note or bond. A bond that has a lower contract rate than market rate, i.e. market interest rate is greater than the coupon rate, will be sold at prices lower than face value. This is as a result of opportunity investors buying similar bonds that gives better returns.

Maurinko [17]3 years ago
5 0

Answer:

C) less than their face amount.

Explanation:

When a bond sells at a lower price than its face value, it is sold at a discount. That means that the price that investors pay for the bond will be lower than its face value because the bond's coupon rate is lower than the market's interest rate.

When a bond is sold at a higher price than its face value, it is sold at a premium, since its coupon rate id higher than the market rate.

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On September 1, a company established a petty cash fund of $230. On September 10, the petty cash fund was replenished when there
storchak [24]

Answer:

September 1, petty cash fund is established

Dr Petty cash fund 230

    Cr Cash 230

September 10, petty cash expenses

Dr Supplies expense 53

Dr Postage expense 80

Dr Cash short and over 16

    Cr Petty cash fund 149

September 10, petty cash is replenished

Dr Petty cash fund 149

    Cr Cash 149

September 15, petty cash fund in increased

Dr Petty cash fund 90

    Cr Cash 90

   

3 0
3 years ago
Two foreign companies want to trade shares of their stock on u.s. stock exchanges. one company follows ifrs but the other compan
Svetach [21]

Answer;

-A foreign company that wants to have their shares traded on U.S. stock exchanges who uses accounting practices that comply with IFRS

Explanation;

Financial Accounting Standards Board (FASB) is the primary accounting standard-setting body in the United States. Generally accepted accounting principles (GAAP) is a set of accounting standards that have substantial authoritative support and which guide accounting professionals.

-FASB goal is to provide leadership for public companies in establishing and improving the accounting methods used to prepare financial statements. The FASB has the authority to set, but not enforce, accounting standards. Enforcement falls under the jurisdiction of the SEC. The FASB takes recommendations from the SEC and the AIPA when devising or improving standards; however, it is not required to.

3 0
3 years ago
George saves 18% of his total gross weekly earnings from his 2 part-time jobs. he earns $6.25 per hour from one part-time job an
mote1985 [20]
The correct answer is - the number of hours he works at each job.
If we have the number of hours he works for each job separately, then we will be able to take out a percentage of the earnings from both of the jobs separately. We will than get the sum of the percentages if both of them, and have the real amount of George's weekly savings.
8 0
3 years ago
Read 2 more answers
This occurs when a person or firm purchases new capital. This occurs when a person's income exceeds his consumption. Which of th
Lostsunrise [7]

Answer: Buying $200 stock in AT&T is an example of investment. As in this case the persons income exceeds his consumption and he buys new capital.

Borrowing $1000 from a bank to buy a car to use in business is also an investment as in this case buying a car is like investing in a cash flow producing asset, as the car will be an asset which will help earn money from the pizza business.

Explanation:

Roommate depositing $100 is an example of saving and not investing.

Taking out a mortgage and buying a house is an example of consumption and not investment.

3 0
3 years ago
On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $208,831.0
borishaifa [10]

Answer: Equipment Cr. $208,831.00

Explanation:

The Asset was purchased at a cost of $208,831.00 and this was reflected in the Equipment account.

When disposing of the Equipment therefore, the Equipment account has to be credited by a total amount corresponding to the same amount which is $208,831.00 to ensure that the asset will be removed from the Equipment account as it is no longer in the company.

5 0
3 years ago
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