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gladu [14]
3 years ago
6

An investor in a country with an original issue discount tax provision (e.g. U.S.) purchases a 20-year zero-coupon bond at a dee

p discount to par value. The investor plans to hold the bond until the maturity date. The investor will most likely report:
Business
1 answer:
mr Goodwill [35]3 years ago
7 0

Answer:

The investor will most likely to report taxable income from the bond annually until maturity

Explanation:

Original issue discount tax requires that the investor make provision for part of original issue discount in his taxable income every tax year until maturity. The interest is not payable until it accrued and it is calculated as difference between the bond's par value and its original issue price.

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The Ingraham Corporation has $1,000 par value bonds outstanding. The bonds have an annual coupon rate of 8.90 percent and an ann
Hunter-Best [27]

Based on the inflation rate and the yield to maturity, the real rate of return on the bonds will be 5.23%.

<h3>What is the real rate of return?</h3>

This can be found by the formula:

=  (( 1 + nominal Return) / ( 1 + Inflation rate)) - 1

Solving gives:

= ( ( 1 + 8.0%) / ( 1 + 8.90%)) - 1

= 1.0523 - 1

= 5.23%

Find out more on real rates of return at brainly.com/question/1698368.

7 0
2 years ago
The bid-ask spread exists because of _______________. A. market inefficiencies B. discontinuities in the markets C. the need for
SashulF [63]

Answer:

C. the need for dealers to cover expenses and make a profit

Explanation:

In the market for securities there are two pricing of securities.

The ask price is the price at which the buyer is willing to purchase a security.

The ask price or the offer price is price at which the seller of a security is willing to sell it. Ask price can be firm or negotiable.

Bid ask spread is the difference between the highest amount a buyer is willing to buy a security and the lowest price at which a seller is willing to sell it.

This spread exists because dealers need to cover expenses and make a profit

8 0
4 years ago
What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service,
katrin2010 [14]

Answer:

b. Reengineering

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Business Process Reengineering or Business Process Redesign (BPR) involves radical overhaul of company's core business processes, work, jobs, etc to achieve radical performance improvement in terms of quality of service, cost reduction, productivity etc. Company's start from zero and re-think all the processes.

<em>Restructuring:</em> It is significant change made to operational process or structure of a company when the company is facing financial pressure.

For Example Debt Restructuring involves change in terms of debt and creating a way to pay off debt.

<em>Downsizing:</em> Downsizing involves terminating multiple employees at the same time to save money.

<em>Delayering:</em> It is a way to remove one or more levels of hierarchy from the organisational structure. It is a way to flatten the organisation's structure.

<em>Recruiting:</em> It is process of finding and hiring the qualified and suitable people for a given job.  

3 0
3 years ago
1.People who make the best mystery shoppers have usually prepared themselves by: Reading Passing Certification Courses Researchi
attashe74 [19]
The right answer for the question that is being asked and shown above is that: "Researching mystery shopping on the internet." People who make the best mystery shoppers have usually prepared themselves by Researching mystery shopping on the <span>internet</span>
8 0
3 years ago
Which is true about net worth?​
ElenaW [278]
The answer is d by the way
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2 years ago
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