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3 years ago

Which of the following statement is false?

Business

2 answers:

lara31 [8.8K]3 years ago

5 0

Answer:

C) Coupon bonds always trade for a discount.

Explanation:

"A coupon bond, also referred to as a bearer bond or bond coupon, is a debt obligation with coupons attached that represent semiannual interest payments. With coupon bonds, there are no records of the purchaser kept by the issuer; the purchaser's name is also not printed on any kind of certificate. Bondholders receive these coupons during the period between the issuance of the bond and the maturity of the bond." Trade them for a discount is not a common characteristic of coupon bonds.

Reference: Chen, James. “Coupon Bond.” Investopedia, Investopedia, 18 Sept. 2019

tatuchka [14]3 years ago

3 0

Answer:

The answer is: C) Coupon bonds always trade for a discount.

Explanation:

Discount bonds: If a bond offers a coupon rate that is lower than prevailing interest rates, it will trade at a discount. Discounted bonds are currently priced lower than its original price (its par value).

Premium bonds: If a bond offers a coupon rate that is higher than prevailing interest rates, it will trade at a premium. Premium bonds are currently priced higher than its original price (its par value).

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On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value o

Vilka [71]

Answer:First Year Depreciation= $84,000

Second Year Deprecation= $78,400

Explanation:

Using Double declining

We have that :

Depreciation value = Cost - Salvage value

$280,000 - $40,000 =$240,000

Since machine is expected to depreciate for 5 years, Annual depreciation = 240,000 / 5 years

= $48,000

Annual Depreciation Rate = 48,000 / 240,000 = 20%

Therefore, Double declining = 20 x 2 = 40%

First Year Depreciation: from April to December

= 40% x 280,000 x 9/12 months

= $84,000

Second Year Deprecation:

= 40% x (280,000 - 84,000)

= $78,400

4 0

2 years ago

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,

bearhunter [10]

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%

6 0

2 years ago

In a credit application, besides one's capacity to pay, creditors also consider which of the following?

DochEvi [55]

Answer:

The lenders use a system of five Cs to know about the creditworthiness of potential borrowers. They weigh five characteristics of the borrower and various conditions of the loan, chances of default and risk of loss. The five Cs used by the lender are capacity, character, collateral, capacity and conditions.

The first C is character, it can be known by the previous loans of the applicant.

Debt to income ratio is the second C.

The third C is capital, it is the amount of money possessed by an applicant.

Collateral is the fourth C, it is the asset that can be used to back the loan.

The fifth C is conditions, the amount of the loan, its purpose and the prevailing interest rate in the market are known as conditions.

4 0

2 years ago

Processing clerks work in what?

AveGali [126]

Processing clerks work in Warehouses
Your answer is D.

They usually regulate incoming and outgoing packages <span />

6 0

3 years ago

Read 2 more answers

Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so s

Lelu [443]

Answer:

$3,402

Explanation:

We are to calculate the future value of the annuity

The formula for calculating future value = A x (B / r)

B = [(1 + r)^n] - 1

R = interest rate

N = number of years

(1.10)² - 1 = 0.21

$1,620 x( 0.21 / 0.1) = $3,402

4 0

2 years ago