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timama [110]
3 years ago
13

You own a bond that has an 8 percent coupon and matures 8 years from now. You purchased this bond at par value when it was origi

nally issued. If the current market rate for this type and quality of bond is 8.25 percent, then you would expect
Business
1 answer:
vaieri [72.5K]3 years ago
3 0

Answer:

C) to realize a capital loss if you sold  the bond at the market price today.

Explanation:

Your bond will sell at a discount since the market rate is higher than the bond's coupon rate. When a bond sells at a discount its market price is lower than its face value. Since you purchased the bond at its face value, and you sell right now, you will receive less money than what you paid for it.

You might be interested in
. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected
ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the  contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0
3 years ago
Net income or net loss for a period is calculated by the following formula
V125BC [204]
<span>Revenues–Expenses–Current Debt = Net Profit or Net Loss

</span>
3 0
3 years ago
Read 2 more answers
A company reports the following information for June: Sales revenue $ 104,000 Income tax expense $ 11,000 Operating expenses 22,
Elodia [21]

Answer:

Gross profit    $39,000

Explanation:

X company

Income statement ( parochial)

For the year ended, June 30 20YY

Sales revenue                                                       $104,000

Less: cost of goods sold                                       $65,000

Gross profit                                                            $39,000

In that case, we do not use Income tax expense, Operating expenses, Deferred revenues, Non-operating revenues because those will be needed when we will calculate the net income.

5 0
3 years ago
Harold, a black man, worked for Alegius Financial Services as a sales representative. On three separate occasions over a period
Mnenie [13.5K]

Answer:

The correct answer is letter "D": Harold will win his case because the employer was aware of the racially harassing behavior, yet no discipline was imposed.

Explanation:

The Equal Employment Opportunity Commission (<em>EEOC</em>) is an agency of the federal government of the United States that enforces laws against race, color, religion, sex, age, or disability discrimination in the workplace. Most employers and unions are covered under EEOC laws.

In Harold's case, the harassment was not specifically against him but there were clear signs of discrimination. However, Alegius Financial Services did not do anything regarding this issue what will result in finding the company liable after Harold sued them.

7 0
3 years ago
Macrosoft Company reports net income of $61,000. The accounting records reveal depreciation expense of $76,000 as well as increa
melamori03 [73]

Answer:

Cashflow from Operating Activities                  $

Net income                                                         61,000

Add: items not involving movement of cash

Depreciation                                                    <u>76,000</u>

                                                                          137,000

Changes in working capital:

Increase in prepaid rent                                   (56,000)

Increase in accounts payable                           <u>11,000</u>

                                                                            92,000

Less: Tax                                                           <u>  16,000</u>

Cashflow from operating activities                   <u> 76,000</u>

Explanation:

Cashflow from operaing activities  using the indirect method equals net income plus depreciation minus increase in prepaid rent plus increase in accounts payable minus tax.

4 0
3 years ago
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