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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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Domain name extensions occur _____ the period in the domain name.
Shalnov [3]

Answer:

after

Explanation:

Domain name extension is a TLD or top level domain.

For google.com the domain name extension is 'com'

This comes after the period.

8 0
3 years ago
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The budgeted multi-step income statements of both manufacturing and merchandising companies include the calculation of gross pro
k0ka [10]

Answer:

TRUE

Explanation:

The gross profit is the difference betwenethe sales revenue and the cost of good sold/manufactured

for retail companys they determinate the cost using a given inventory method like FIFO LIFO or weighted average.

Manufacturing companies will subtract from the sales revenue the cost of good manufactured which can be determinated in various ways like process, order, absorption or ABC

7 0
3 years ago
Pioneering advertisements would most likely be used during which stage of the product life cycle?
abruzzese [7]

Answer:

(1) introduction

Explanation:

Pioneering advertising creates consumers awareness about the availability of a totally new product as well as explaining its use.

3 0
3 years ago
Berta Company owns inventory prior to a customer ordering it from Norman Company. If a customer returns the merchandise, Berta C
Mumz [18]

Answer:

Principal

Explanation:

4 0
3 years ago
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At the end of 2021, Kingbird Co. has accounts receivable of $762,000 and an allowance for doubtful accounts of $22,520. On Janua
mixer [17]

Answer:

a. Debit Allowance for doubtful debt $4,398

   Credit Accounts receivable $4,398

   Being entries to write off receivable due from Madonna Inc.

b. $739,480  before and after the write-off

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

The realizable value of accounts receivable before the write off is the net of the accounts receivable and the allowance for doubtful debt

=  $762,000 - $22,520

= $739,480

This amount remains the same after the write off as the write off will reduce the balances in both the allowance for doubtful debt account and accounts receivable.

6 0
3 years ago
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