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stich3 [128]
2 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]2 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]2 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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The most recent financial statements for Xporter, Inc., are shown here:
Diano4ka-milaya [45]

Solution :

Expected sales = current sales x (1 + projected sale next year increase)

                         = 5,700 x (1 + 15%)

                         = $ 6555

Expected cost = current cost x (1 + projected sale next year increase)

                       = 4200 x (1 + 15%)

                       = $ 4830

Taxable income = 1500 x ( 1 + 15%)

                           = $ 1725

Taxes (34%)  = 510 x (1+15%)

                     = $ 586.5

Net income = sales - cost - taxes

                   = 6555 - 4830 - 586.5

                   = $ 1138.5

Calculation of total asset :

Current asset = 3,900 x 1.15

                      = $ 4485

Fixed asset   = 8100 x 1.15

                      = $ 9315

Total asset = 4485 + 9315

                  = $ 13800

Calculation of total liabilities

Current liabilities = 2200 x 1.15

                            = $ 2530

Long term debt = $ 3,750

Equity = $ 6050 + (1138.5 x 0.50 )

          = $ 7189

Total liabilities  = $ 2530 + $ 3,750 + $ 7189

                          = $ 13, 469

Therefore the external financial needed is = $ 13800 - $ 13, 469

                                                                       = $ 331

8 0
3 years ago
A(n) _____ refer(s) to a detailed description of a brand's current marketing position.
NemiM [27]

Answer: Situation analysis

Explanation:

  The situation analysis is the collection of all the methods which is specifically used by the manager in an organization for analyzing both external and the internal environment of the firm.

 It is the process of evaluating the growth of the company and the potential of the customers in terms of business. The importance of the situation analysis is that it provide strength and various types of opportunities in the market.

 Therefore, Situation analysis is the correct answer.

   

3 0
3 years ago
Write down any four techniques that you can practice to become an effective listener.
klemol [59]
For techniques that you can practice to become an efficient listener or listening with all ears paying attention giving feedback and observing your anatomy is of listening.
8 0
2 years ago
Read 2 more answers
The elements surrounding a word which influence its meaning are called the _____. usage context paradigm
Alex Ar [27]
The elements surrounding a word which influence its meaning are called the CONTEXT.

Context is also defined as the set of circumstances in a communicative situation which will influence how the word is perceived, received, and understood.


8 0
3 years ago
To pay for your​ education, you've taken out ​$29,000 in student loans. If you make monthly payments over 10 years at 7 percent
Scrat [10]

Answer:

$169.07

Explanation:

Data provided in the question:

Loan amount = $29,000

Time  = 10 years

Interest rate = 7% compounded monthly

Therefore,

Interest rate per period, r = 7% ÷ 12 = 0.583% = 0.00583

number of periods, n = 10 × 12 = 120 months

Now,

Loan amount = Monthly payments × [ { 1 - (1 + r )⁻ⁿ } ÷ r]

on substituting the respective values, we get

$29,000 = Monthly payments × [ { 1 - (1 + 0.00583 )⁻¹²⁰ } ÷ 0.00583]

or

$29,000 = Monthly payments × 171.53

or

Monthly payments = $169.07

7 0
2 years ago
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