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Vladimir79 [104]
3 years ago
14

A bond has a current yield of 9% and a yield to maturity of 10%. Is the bond selling above or below par value?

Business
1 answer:
CaHeK987 [17]3 years ago
7 0

Answer:

The current yield = 9%

The yield to maturity = 10%

The price of the bond will be below the par value and called as discount bonds. This is because the bond and yield to maturity holds the inverse relationship. Therefore, the bond will be issued at discount, below the par value because yield to maturity is greater than current yield.

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Paid $1,300 towards principal of the notes payable<br> What is the credit and debit for this?
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Credit $1300 from you cash or bank account and Debit $1300 to Principal account.
4 0
2 years ago
The application of multiple regression analysis to a data set yields an F statistic that is highly significant and t ratios that
dolphi86 [110]

Answer:

(B) multicollinearity is present.

Explanation:

Multicollinearity -

It is the process where , one of the predictor variable in the multiple regression model can be linearly predicted from the others with  the substantial degree of accuracy , is known as multicollinearity or  collinearity .

<u>In this case , the coefficient estimated of the multiple regression can change erratically for even a small change in the model .</u>

hence , from the question , the indication is of (B) multicollinearity is present .

6 0
3 years ago
A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
max2010maxim [7]

Answer:

Explanation:

a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=150,000/1.12+210,000/1.12^2+360,000/1.12^3

=557580.18

NPV=Present value of inflows-Present value of outflows                  

=557580.18-460,000

=$97580.18(Approx)=Value of factory

b.Hence since net present value is positive;factory is a good investment

(Yes)

7 0
2 years ago
Suppose a wet and sunny year increases the nation's sweetcorn crop by 20%. How will this affect the market for frozen peas,a sub
Soloha48 [4]

Answer:

d) decease in demand

Explanation:

When the produce of sweet corn crop rises by 20%, this would lead to an increase in supply. With increase in supply, the price of sweet corn shall fall, which would lead to an increase in demand as now consumers will consume more of sweet corn.

Since the relationship between price of a good and demand for it's substitute is positive, the demand for the substitute shall fall.

Thus, demand for frozen peas shall decrease as demand for sweet corn has increased.

5 0
3 years ago
A worthless security had a holding period of six months when it became worthless on December 10, 2020. The investor who had owne
mariarad [96]

Answer: B. The investor has a short-term capital loss of $20,000.

Explanation:

A short-term loss occurs when a deficit is realized when there's a sale of an asset which has been held by the person for a period of one year or less.

In this case, since the security was worthless, it's a loss and was also help for six months which is less than one year, then it's a short term capital loss.

Therefore, the correct option is B

6 0
2 years ago
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