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nataly862011 [7]
3 years ago
6

14. Based on the bond price, we could say that it was issued at _____. Then, what could you say about the interest rate at the t

ime of issuance compared to the coupon rate? Explain.
Business
1 answer:
Dahasolnce [82]3 years ago
6 0

Answer:

Par value, interest rate is equal to coupon rate

Explanation:

Par value, face value or nominal value is the amount of money bond issuers oblige to pay to bond holders at its maturity. When the bond is issued at this value, it is issued without premium or discount or at equal interest and coupon rates. Interest rates are usually set by the market. Bondholder has rights to periodic coupon payments and nominal payment at bond's maturity.

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Idk this but u can google it and the answer would be right there
6 0
3 years ago
An annuity will pay $1000 per year for 10 years, starting five years after today. What is the present value (PV) of this annuity
vodka [1.7K]

Answer:

$5,007.72

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow each year from year one to five = 0

Cash flow each year from year six to fifteen = $1000

I = 7%

Present value = $5,007.72

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
3 years ago
A monopolistically competitive firm is producing at an output level in the short run where average total cost is $4.75, price is
Scorpion4ik [409]

Answer: With a loss

Explanation:

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This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.

The company is therefore operating at a loss because every additional unit is costing them instead of benefitting them. To counter this, they need to reduce production so that marginal cost will fall.

5 0
3 years ago
What is an incentive for a person to contribute to an IDA? It earns the highest interest rates available at a bank. It is good f
vagabundo [1.1K]
The correct answer for the question that is being presented above is this one: "An organization matches the amount deposited." An incentive for a person in order to contribute to an IDA is that an organization matches the amount deposited.
5 0
4 years ago
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. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
GalinKa [24]

Answer:

B. Controllable costs

Explanation:

There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
3 years ago
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