1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A firm has earnings before interest and taxes of $27,130, net income of $16,220, and taxes of $5,450 for the year. While the fir
Shtirlitz [24]

Answer:

The answer is -$4,940

Explanation:

Net income = Profit before interest and tax minus interest minus taxes

We rewrite the formula to get interest:

Interest = Profit before interest and tax minus taxes minus net income

= $27,130 - $5,450 - $16,220

=$5,460

Cash flow to creditor equals:

Amount repaid to suppliers minus new amount borrowed plus interest

$31,600 - $42,000 + $5,460

-$4,940

7 0
3 years ago
Read 2 more answers
Why does the kyoto protocol allow a less-developed nation such as china to be exempt from some limits on emissions of greenhouse
OLga [1]
Economic development depends on industrial growth, which may increase greenhouse gas emissions. Hope this was helpful (:
5 0
3 years ago
Paulina Lesky is 27 years old and has accumulated $7,500 in her self-directed defined contribution pension plan. Each year she c
zimovet [89]

Answer:

The answer is "Option D".

Explanation:

The amount accrued in the pension system until now = 7500

Danger or security account proportion = 20 \%

The percentage of the amount kept in a safe account (PV) = 7500\times 20\% = 1500\%

Number of investment years owned by (n)=63-27=36

Risk-free return rate I = 3\%

Combined total amount up to age 63 (formula for the current value) = Present \ value\times (1+i)^n

=1500\times (1+3\%)^{36}\\\\=4347.417492

The contribution is \$2000 a year and the employer corresponds with the same amount for the pension plan.

Total annual contribution = 2000+2000 = 4000

Risk-free or healthy account proportion= 20\%

Amount invested annually (P) = 4000\times 20\% = 800 \ (Risk \ free)

Annual deposit amount (n) for years=63-27 =36

Returns free of risk I = 3\%

An cumulative sum due to an annuity= P\times \frac{(((1+i)^n)-1)}{i}

=800\times \frac{(((1+3\%)^{36})-1)}{3\%}\\\\=50620.75541

Total amount accumulated in safe account = FV\  of \ PV + FV of annuity

=4347.417492+50620.75541\\\\=54968.1729\\\\=54968

6 0
3 years ago
12. Market efficiency and perfect price discrimination Perfect price discrimination is efficient because it converts what would
Nady [450]

Market efficiency is achieved with perfect price discrimination because what would have been dead-weight loss is converted into consumer and producer surplus through perfect price discrimination.

For the market, efficiency is achieved because the dead-weight loss is converted into producer and consumer surpluses, with enormous benefits to the society.

Thus, perfect price discrimination achieves allocation efficiency for both the producer and the consumer (or the society as a whole).

Learn more about market efficiency and price discrimination here: brainly.com/question/10234084

6 0
3 years ago
Read 2 more answers
Hargren Publishing offers its Accounting textbooks as e-texts through its online homework management system. Purchase of an acce
UkoKoshka [18]

hey all I am new here.. please follow

7 0
3 years ago
Other questions:
  • Foreign investors have preferred to invest in the united states except for which of the following reasons?
    13·1 answer
  • Growler Commercial Cleaning Company collects $1,000 deposit associated with the rental of industrialcleaning equipment. The depo
    12·1 answer
  • Parkdale Windows utilizes a classic assembly line in manufacturing its window components. Which type of interdependence is depic
    9·1 answer
  • Joline works for Bell labs in New Jersey. Joline invents a new technology that stops global warming while she is at work on comp
    10·1 answer
  • Does anybody know xxalvinaa
    6·1 answer
  • When an industry is a natural monopoly:
    9·1 answer
  • Given the acquisition cost of product ALPHA is $24, the net realizable value for product ALPHA is $23, the normal profit for pro
    13·1 answer
  • Over the last 50 years, family income has become __________ in explaining the educational achievement gap
    7·1 answer
  • State d function of warehousing​
    10·1 answer
  • Shelly, a sales manager at Best Computers, has recently moved from Dallas to Hong Kong for an expatriate assignment. Shelly is f
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!