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solniwko [45]
3 years ago
12

A discount bond

Business
2 answers:
nadezda [96]3 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]3 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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Amy and mike are going to an amusement park. they each bought ice cream, and mike got a soda. amy. y had a $10 coupon to put tow
N76 [4]

We have that

Cost total-------------------------$10 coupon+$30.25=$40.25

<span>ice cream costs                        $1.50*2</span>= -$3

<span>admission cost                        $18*2</span>= -$36

<span>soda cost                                   $X*1</span>= -$X

 $40.25=$3+$36+$X

$X= $ 1.25

a soda costs at the amusement park $ <span>1.25</span>

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3 years ago
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What is the term used to describe an organization in which positions are awarded based on one's ability and skill?
kykrilka [37]
The term you're looking for is meritocracy.
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Mobray Corp. is experiencing rapid growth. Dividends are expected to grow at 32 percent per year during the next three years, 22
KatRina [158]

Answer:

$1.3794

Explanation:

The computation of the projected dividend for the coming year is shown below:

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Expected Dividend in Year 1 (D1) = Do ( 1+g) = Do × 1.32

Dividend in Year 2 (D2) = Do ( 1+g)^2  = Do × 1.32^2

Dividend in Year 3 (D3) =  Do ( 1+g)^3 = Do × 1.32^3

Dividend in year 4 , (D4) = D3 ×  (1+g) = Do × 1.32^3 × 1.22

Now the price at year 4 is

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= Do × 1.32^3 × 1.22 × (1 + 0.07 ) ÷ ( 0.10 - 0.07 )

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Use Gordon Growth Model

The Current Price of Stock is

= D1 ÷ ( 1+ R)^1 +D2 ÷ ( 1+ R)^2 + D3 ÷ ( 1+ R)^3 + D4 ÷ ( 1+ R)^4 + P4 ÷ ( 1+ R)^4

$78  = Do ( 1.32 ÷ 1.1 + 1.32^2 ÷ 1.1 ^2 + 1.32^3 ÷ 1.1^3 +1.32^3 × 1.22 ÷ 1.1^4 + 100 .08 ÷ 1.1^4)  

$78 = Do ( 1.2 +1.44 + 1.728 + 1.9165 + 68.36 )

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Now

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= Do × 1.32

= $1.045 × 1.32

= $1.3794

8 0
3 years ago
Cost of Debt. Micro Spinoffs Inc. issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, th
stealth61 [152]

Answer:

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