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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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bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 5,600 direct labo
Savatey [412]

Answer:

$84,000

Explanation:

The computation of August cash disbursement for manufacturing overhead is seen below;

Direct labor hour

5,600

Variable overhead per hour

$5.4

Variable manufacturing overhead

$30,240

Fixed manufacturing overhead

$69,440

Total manufacturing overhead

$99,680

Less: Depreciation

$15,680

Cash disbursement for manufacturing overhead

$84,000

8 0
3 years ago
2-a. Refer to the original data. How much will net operating income increase (decrease) per month if the company uses higher-qua
Vadim26 [7]

The original data is :

Data for Hermann Corporation

                                          Per unit     Percent of sales

Selling price                         $ 75              100%

Variable expenses                  51                 68

Contribution margin             $ 24               32%

The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.

Solution :

                                                     Present             Proposed

Sales                                             300000            375000

Less : Variable cost                      204000           275000

Contribution margin                     96000               100000

Less : Fixed expenses             <u>    75000     </u>      <u>     75000    </u>

Net income                                   21000                25000

The net operating income :      Increases          4000

Net operating income = increased sales Net income - current sales net income.

Therefore the higher quality component should be used.                                                            

8 0
3 years ago
Calcular el valor futuro de $2,500 que se ahorran al final de cada mes por un periodo de 4 años con una tasa de interés del 9% a
amm1812

Answer:

VF= $143.801,78

Explanation:

Dada la siguiente información:

Deposito mensual (A)= $2.500

Cantidad de periodos (n)= 4*12= 48 meses

Interes mensual (i)= 0,09/12= 0,0075

<u>Para calcular el valor futuro (VF), debemos usar la siguiente formula:</u>

VF= {A*[(1+i)^n-1]}/i

VF= {2.500*[(1,0075^48) - 1]} / 0,0075

VF= $143.801,78

5 0
3 years ago
You are a​ risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all
galben [10]

Answer:

It's best to invest in the second economy

Explanation:

The question does not provide information on the hypothetical economic expectations of the two economies, but as a risk-averse investor, it's a better idea to try to "spread" the risk instead of concentrating it.

In the first economy, conditions might or might not be good. If they are good, returns will be extraordinary because all stocks will provide good returns, but if conditions take a turn for the worse, all stocks prices will fall and the financial consequences will be catastrophic.

In the second economy, results might never be as good as in the first economy, but they also will not ever be as bad. The risk is spread between various stocks, and while some may fall in price, others will rise, and viceversa. For a risk-adverse investor, this a far better option.

3 0
3 years ago
What protects consumers against harm from products on the market? Franchises Profit Motives Private property rights Government R
Helen [10]
That would be government regulations because the government always ensures consumers safety.
5 0
3 years ago
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