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Anit [1.1K]
3 years ago
8

Why might a town decide to issue bonds?

Business
2 answers:
fredd [130]3 years ago
8 0
The answer is C) Both A and B

When a town issues bonds, it is issuing an IOU with interest, usually to help fund projects (such as roads or bridges) or to provide a public service. 

Keep in mind that the town is saving money for residents only if it is the residents of the town who purchase the bonds. These bonds enable the residents to earn a return on their savings, since they are entitled to be paid back by the town with interest at a predetermined date. 
SVETLANKA909090 [29]3 years ago
7 0

<u>The correct option is (C). Both A and B. </u>

<u> </u>

Further Explanation:

Bond:

The bond is a long-term debt which the company promises to pay with interest to their bondholders.

Justification for the correct and incorrect answer:

A-

To help save money for residents: This option is incorrect.  

By issuing bonds, the residents of the town can save their money.  

B-

To build new roads or bridges: This option is incorrect.

By issuing bonds, this will help in building new roads or bridges. Bonds will help the town to invest in building.

C-

Both A and B: This option is correct.

The bonds will make the town residents to earn interest by issuing the bonds and help them to save money for them, and also help to build new roads or bridges. Therefore, this option is correct.

D-

Neither A nor B: This option is incorrect.

The bonds will make the town to earn interest by issuing the bonds and help them to save money for them, and also help to build new roads or bridges. Therefore, the option (C) is correct.

Learn More:

1. Stock and bonds  

<u>brainly.com/question/1330190 </u>

2. Stock price  

<u>brainly.com/question/11192535 </u>

3. Stock portfolio  

<u>brainly.com/question/5728646 </u>

<u> </u>

Answer Details:

Grade: High school

Chapter: Stocks and bonds

Subject: Business studies

Keywords: Why might a town decide to issue bonds, to help save money for residents, to build new roads or bridges, both A and B, neither A nor B.

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According to the definition of market value, what should an appraiser do if there are special or creative financing terms presen
-BARSIC- [3]

According to the definition of market value an appraiser should ignore the concessions, complete the appraisal, and select appropriate comparables if there are special or creative financing terms present for the subject property.

<h3>What is market value?</h3>
  • The price at which an asset would trade in a competitive auction environment is known as its market value, or OMV.
  • Despite the fact that these phrases have different meanings under various standards and can have variations in some situations,
  • market value is frequently used interchangeably with open market value, fair value, and fair market value.
  • You would multiply the total number of outstanding shares by the current share price to determine a company's market value.
  • If ABC Limited, for instance, has 50,000 shares outstanding at a price of $25 apiece, its market value would be $1.25 million (50,000 x $25).

Learn more about market value here:

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7 0
2 years ago
At an inflation rate of 7 percent, the purchasing power of $3 would be cut in half in 10.25 years. how long to the nearest year
lyudmila [28]
The applicable formula is;
A = P(1-r)^n

Where;
A = Final purchasing power
P = Current purchasing power
r = inflation
n = Number of years when P changes to A

Confirming the first claim:
A = 1/2P (to be confirmed)
P = $3
r = 7% = 0.07
n = 10.25 years

Using the formula;
A = 3(1-0.07)^10.25 = 3(0.475) ≈ 3(0.5) = $1.5
And therefore, A = 1/2P after 10.25 years.

Now, give;
P = $9
A = 1/4P = $9/4 = $2.25
r = 6.5% = 0.065
n = ? (nearest year).

Substituting;
2.25 = 9(1-0.065)^n
2.25/9 = (1-0.065)^n
0.25 = (1-0.065)^n
ln (0.25)= n ln(1-0.065)
-1.3863 = -0.0672n
n = (-1.3863)/(-0.0672) = 20.63 years

To nearest year;
n = 21 years

Therefore, it would take approximately 21 years fro purchasing power to reduce by 4. That is, from $9 to $2.25.
7 0
3 years ago
Under the _____, success is usually measured by how well companies achieve recruitment, promotion, and retention goals for women
Nat2105 [25]

Answer:

A, discrimination and fairness paradigm

Explanation:

Discrimination and fairness paradigm is a model for ensuring that equal opportunities, fairness, employment of underrepresented groups, etc are one of the ways of measuring the success of an organization.

Like in the question, these above classes of persons or employees are a measure of success as it tends to show or bring about the fair treatment as well as encourage diversity in the organization.

A disadvantage of the discrimination and fairness paradigm is that the diversity of the organization remains shallow or on the surface level.

Cheers.

5 0
4 years ago
Read 2 more answers
Assume that you have invested $100,000 in British equities. When purchased the stock's price and the exchange rate were £50 and
riadik2000 [5.3K]

Answer: 7.58%

Explanation:

Given Data

Invested capital = $100,000

Stock price during purchase = £50

Exchange rate = $.50/$1.00

Selling rate after 1 year = £45

Exchange rate = $.60/$1.00

HPR = gain / pain * 100

= $50,000 * $1.00/$.55 + $10,000 * $1.00/ $.60 - $100,000 / $100,000 * 100%

= $50,000 * $1.812 + $10,000 * $1.667 - $100,000 / $100,00 * 100%

= $90,909.09 + $16666.67 - $100,000 / $100,000 * 100

= $7575.76 / $100,000 *100%

= 0.0757576 * 100%

= 7.58%

8 0
3 years ago
The demand for plumbers is the same in country A and country B, but the plumbers in country A earn less than the plumbers in cou
Tpy6a [65]

Answer:The supply of plumbers in country A is greater than the supply of plumbers in country B.

Explanation:

The state of demand and supply of labour has a great effect on wages of workers. If the supply of plumbers is grater than the number s of households demanding plumbering services the wages for the plumbers will fall because more plumbers are available for the few works available and this is the situation why plumbers in country A earn less than B though the demand in both countries are the same but they do not vary in the same proportion with their demands.

The supply of plumbers in B is not greater than A and this why B earn more. Productivity refers to measuring the level of outputs in relation to the inputs such labour, capital in production and this does not have impact on wages compare to demand and supply of labour but it's impact is on production.

6 0
4 years ago
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