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solniwko [45]
4 years ago
12

A discount bond

Business
2 answers:
nadezda [96]4 years ago
4 0

Answer:

The correct answer is letter "D": pays the bondholder the face value at maturity.

Explanation:

Bonds that are issued for an amount lower than their face value are called discount bonds. They are an indicator that the company may not be able to take care of its liabilities. Though, they can also be bonds trading at a lower price than their face value in the secondary market.  

<em>At the maturity date, discount bonds pay the holder the face value allowing the investor to profit.</em>

Dovator [93]4 years ago
3 0

Answer:

The answer is D

Explanation:

A discount bond is a bond trading at less than a bond's par or facr value.

In this, interest will be paid before the maturity date and only the principal (face value) is paid at maturity. The interest rate is below that market interest rate.

While a premium bond is trading above the market interest rate

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Which of the following best exemplifies a contingency that is reported in the notes to the financial statements?
timurjin [86]

Answer:

The correct answer is letter "C": Estimated loss from an ongoing lawsuit.

Explanation:

A contingent liability is an amount that will need to be charged in the future but there are still outstanding problems that only make it a possibility. Litigation and the threat of litigation are the most common contingent liabilities, but this category also includes product warranties. If they are probable and the sum can be calculated, contingent liabilities must be reported on the company's Balance Sheet.

6 0
4 years ago
Caspian Sea Drinks needs to raise $26.00 million by issuing additional shares of stock. If the market estimates CSD will pay a d
Klio2033 [76]

Answer:

The number of shares needed to raise $26 miliion will be 590909 shares.

Explanation:

To calculate the number of shares needed to raise $26 million, we first need to findout the price per share at which shares are issued. The fair value or the price per share can be caclculated using the constant growth model of the DDM approach. Thus, the price per share today will be:

P0 = 2.46 / (0.1024 - 0.0465)

P0 = $44.007 rounded off to $44

Thus, at the price of $44 per share, number of shares needed to raise $26 million will be:

No of shares = 26,000,000 / 44  = 590909.0909 rounded off to 590909 shares

4 0
3 years ago
Read 2 more answers
Throughout California, there are agencies within the city/county government whose employees include professionally trained plann
Ghella [55]

Answer:

Planning Departments

Explanation:

Throughout California, there are agencies within the city/county government whose employees include professionally trained planners. Noticed that planning department employees provide technical services (rather than just recommendations, as planning commissioners do) for the planning commission, elected officials, and the citizens.

7 0
3 years ago
ABC stock has just closed at $70.50. A customer has an open order on the Specialist's book (DMM's book) to sell short 100 shares
Rudiy27

Answer:

A) Sell short 100 ABC at 69.45 Stop

Explanation:

When an order is placed below the market (OBLOSS - Open Buy Limits Open Sell Stops) it will be adjusted on the specialist's book for distributions on ex date. This open sell stop order = $70 - $0.55 (dividend) = $69.45

So the adjusted order will be: Sell short 100 ABC at 69.45 stop.

7 0
3 years ago
a) Intel had assets equal to $103,065 million and liabilities equal to $41,980 million for a recent year-end. What was Intel's t
Ray Of Light [21]

Answer:

$61,085 million

Explanation:

Given that,

Total assets of Intel at the year end = $103,065 million

Total liabilities of Intel at the year end = $41,980 million

Accounting equation is as follows:

Total assets = Total liabilities + Stockholder's equity

$103,065 million = $41,980 million + Stockholder's equity

$103,065 million - $41,980 million = Stockholder's equity

$61,085 million = Stockholder's equity

Therefore, the Intel's total equity at year-end is $61,085 million.

5 0
3 years ago
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