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dimulka [17.4K]
3 years ago
10

When the required return is equal to the coupon rate, the bond value is▼equal togreater thanless thanthe par value. In contrast

in part a above, if the required return is less than the coupon rate, the bond will sell at a▼discountpremium
Business
1 answer:
-BARSIC- [3]3 years ago
3 0

1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,

2) if the required return is less than the coupon rate the bond will sell at a premium.

Explanation:

1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.

2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.

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An interview is an primary or secondary research
Lady bird [3.3K]

Answer:

primary

Explanation:

6 0
3 years ago
Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The corporation's net operating income is $10,900
In-s [12.5K]

Answer:

$54,650

Explanation:

Total Net operating income from the two divisions is the difference between the total sales and the total expenses. The total expense is made up of the fixed cost and variable cost.  Whilst the variable cost is measured and unique to each departments, the fixed cost is not attributable to a single department.

The variable cost and sales are dependent on the level of activities. The sales less the variable cost gives the contribution margin.

As such, contribution less fixed cost gives the net operating income.

Common fixed cost

= ($77,100 + $43,100 - $10,900)/2

= $54,650

This cost would have been subtracted from each department to get the net operating income hence the division by 2.

3 0
3 years ago
Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000
vladimir2022 [97]

Answer:

the payback period = 4.86 years

Explanation:

Seattle's cash flows are as following:

Year                Cash flow                         Accumulated cash flows

0                     -$150,000                                -$150,000

1                         $30,000                                -$120,000

2                        $30,000                                 -$90,000

3                        $30,000                                 -$60,000

4                        $30,000                                 -$30,000

5                        $35,000                                    $5,000

6                        $35,000                                  $40,000

etc.

The payback period is between year 4 and 5:

  • 4 years + ($30,000 / $35,000) = 4.86 years or
  • year 4 + [($30,000 / $35,000) x 365 days] = 4 years and 313 days
6 0
3 years ago
Four students from your economics class are sitting in a local restaurant discussing the market for coffee. Below are quotes fro
Nastasia [14]

Answer:

D. Tasha: "If coffee drinkers expect the price of coffee to rise next month, then current demand will go up and lead to a price increase this month."

This is the only one with incorrect economic analysis

Explanation:

A. is correct because a shortage of supply would drop the price as we can see in the Graph 1 with the supply curve.

B. is correct because if the two goods are substitues then a lower price for caffeinated soft drinks like Mountain Dew would cause the consumer demand for coffe to go down because the consumers would prefer the good with lower price, rising the demand for Mountain dow in detriment of coffe.

C. is correct as we can see in the Graph 1, the increse in the demand would generate a higher price but it would make the demand go back to D1

D. is incorrect because if coffee drinkers consume more coffee this monht the price would lower.

8 0
3 years ago
A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for
Paha777 [63]

Answer:

The correct answer is "$155".

Explanation:

Given:

She sells to miller,

= $90

She sells to baker,

= $145

She sells to consumers,

= $155

Now,

The value added by miller will be:

= 145-90

= 55 ($)

The value added by the baker will be:

= 155-145

= 10 ($)

hence,

The GDP in this economy will be:

= 155 ($)

5 0
2 years ago
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