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3 years ago

If bonds are issued at a discount, it means that the

Business

1 answer:

ddd [48]3 years ago

4 0

Answer:

b.market interest rate is higher than the contractual interest rate.

Explanation:

A bond sold at a price below its face value is said to be issued at a discount. An investor pays a price that is lower than they will claim at maturity. For example, a bond with a face value of $ 1000 and trades at $ 950 is trading at a discount.

Bonds are issued at a discount when the prevailing market interest rate is higher than the interest rate the bond is offering. A bond interest rate or coupon rate defines its attractiveness to investors. If the coupon rate is higher than the market rate, the bond will be in great demand. But if the coupon rate is lower than the market, the bond will be less attractive to investors. In such a scenario, the bond is issued at a discount to attract investors.

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RAK Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 5.7 percent coupon b

Hatshy [7]

Answer:

5.31%

Explanation:

FV = 1000

Coupon rate = 5.7%

No of compound = 2

Interest per period = $28.5

Bond price = $1048

No of years to maturity = 20

No of compounding till maturity = 40

Coupon rate set on new bonds = Rate(Nper, PMT, -PV, FV) * 2

Coupon rate set on new bonds = Rate(40, 28.5, -1048, 1000) * 2

Coupon rate set on new bonds = 0.02655 * 2

Coupon rate set on new bonds = 0.0531

Coupon rate set on new bonds = 5.31%

7 0

3 years ago

I want to start a new business. Ideas?

Aleks04 [339]

1.) Watch the news and find out a problem that everyone needs the solution to like a geologist national research business. Or something people don't have a specific catagory for or is in the random stuff cabinet

2.) Think about it and see what you can do to make it spectacular.

3.) Think of a name for it.

4.) Get it pattened (I don't know how to spell it sorry)

5.) Make a card for it and tell people about it. For the child abuse example. (Sprinkle a little dramatic facts then tell them what you do to help stop that just to get people intrested and wanting to help.)

6.) Then you can take it from there to get more and more people into your business.

To number 5, I forgot what that trick is but it is when you scare someone by something you told them then dis alarming them by telling the good side. You can basically get anyone to do or say yes to anything you want.

And you can use my geologist catagory idea because these days they really need them. Also my mom said that if your in college and you study for the geologist requirments thing ( I don't know what they call them I think coarses)
They pay you even when your not finished college just to work for them and she also stated why else would they randomly add geology in schools now and they make pretty good money!

Sorry for it being so long but I get excited over the smallest thing and I hope I helped you lots!! And Gooood Luck!!!

5 0

3 years ago

Once a project is underway, the project manager is responsible for the:_______a. people. b. cost. c. time. d. All of these

kati45 [8]

Answer:

I think the answer is D. All of the above

Explanation:

5 0

3 years ago

A _____ is targeted to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repa

Andrej [43]

It would be <span>Subprime mortgage loan.
Hope this helps! :D</span>

3 0

4 years ago

In the U.S. current account, most of the trade deficit results from an excess of imported A. merchandise and services B. merchan

Lina20 [59]

In the U.S. current account, most of the trade deficit results from an excess of imported <span>merchandise (B).</span>

3 0

3 years ago