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
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.

You might be interested in
Miller Fruit wants to expand its citrus grove operations. The firm estimates that it needs $8.6 million to buy land and establis
sergeinik [125]

Answer:

2.072 rights

Explanation:

Amount needed to buy the land = $8.6 million = $8,600,000

stock outstanding = 540,000

Market price per share = $34.80

subscription price = $33 a share

Now,

Number shares to be issued = ( Amount needed ) ÷ ( subscription price )

= $8,600,000 ÷ $33

= 260606.06 shares

1 rights will be issued per stock

thus,

number of rights required for purchase

= ( stock outstanding ) ÷ ( Number shares to be issued  )

= 540,000 ÷ 260606.06

= 2.072 rights

3 0
3 years ago
Some laws prohibit discrimination in employment. These laws promote which of the following primary functions of​ law? A. promoti
Nostrana [21]

Answer:

A. promoting social justice

Explanation:

Discrimination in any manner is prohibited at all the public places, and work places are part of such places covered.

There cannot be any discrimination on the grounds of religion, color, gender, or by any other categorization.

In this manner, every individual is treated equally, irrespective of the background he or she belongs too.

This provides a social justice to every individual. In this manner the social status, personality is not hindered.

7 0
3 years ago
the fixed cost of producing wedding cakes is $10,000 per month. the variable cost for producing 10 wedding cakes per month is $1
Alex

The fixed cost of producing wedding cakes is <u>$10,000 </u>per month. The variable cost for producing 10 wedding cakes per month is <u>$12,000</u>. The average cost of producing 10 wedding cakes per month is <u>$2,200</u>.

The average fixed cost curve associated with a given level of output decreases as output expands. The total product produced by a firm for each level of output or unit of input used. Fixed costs include rent building or machinery. Variable costs are plant products water and seeds.

Fixed costs do not change as the firm changes levels of production. Rent price salary. Variable costs change according to the company's production volume. Fuel costs wage raw materials and parts. The cost of goods sold to trading companies directs materials direct labor costs variable components of manufacturing overheads sales and administrative expenses such as handling and shipping costs.

Learn more about Fixed costs here:- brainly.com/question/3636923

#SPJ4

8 0
1 year ago
1. What are the three stages in strategic management? Which stage is more analytical? Which relies most on empowerment to be suc
valkas [14]

Answer:

strategic management: strategy formulation, strategy implementation, and evaluation and control.

3 0
3 years ago
Have some points anyone i dont care :)
VARVARA [1.3K]

Answer:

Hey

Explanation:

Thanks so much.............

4 0
2 years ago
Read 2 more answers
Other questions:
  • At December 31, Folgeys Coffee Company reports the following results for its calendar year. Cash sales $ 901,000 Credit sales 30
    9·1 answer
  • Unemployment because of a mismatch between the skills of job seekers and the requirements of available jobs is called:
    5·1 answer
  • Where would the HIGHEST air pressure be measured
    15·1 answer
  • 3. Why are many resources allocated through markets?
    7·1 answer
  • A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessne
    11·1 answer
  • An automobile manufacturer has written a long PowerPoint presentation to share with investors about the upcoming year’s business
    7·1 answer
  • Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purc
    13·1 answer
  • Brief Exercise 18-5 a1-a2 Crane Corp. has collected the following data concerning its maintenance costs for the past 6 months. U
    8·1 answer
  • . Empirical estimates suggest the following price elasticity of demand: 0.6 for Coca Cola; 4.0 for foreign vacation travel; and
    13·1 answer
  • The goal of global market segmentation is to break down a new foreign market for a product or a service into different groups of
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!