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Eva8 [605]
3 years ago
15

If bonds are issued at 101.25, this means that ____________________

Business
1 answer:
Whitepunk [10]3 years ago
4 0

Answer:

c.a $1,000 bond sold for $1,012.50.

Explanation:

We assume the par value is $1,000 and since the bond is issued at 101.25 that means its selling price is

= $1,000 × 101.25%

= $1,012.50

Since the bond is issued more than the face value that reflects the premium and if the bond is issued less than the face value so it is issued at a discount

So the right option is c.

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Stocks have market prices, and they also have intrinsic values. If the market price is below the intrinsic value as estimated by
oee [108]

Answer:

True

Explanation:

If the price of a stock drops suddenly, there is more supply than demand. People want out - and they usually want out for a reason.

5 0
3 years ago
Why is participation in local organizations twice as high in the united states as it is in europe?
VARVARA [1.3K]

There is participation in local organizations twice as high in the united states as it is in Europe because there is more local control over policy in the United States than in Europe.

<h3>What is local control in the United States government?</h3>

Local control is used to make its own rules and regulations to maintain the legal powers of local governments from the state government.

  • State and local governments enact laws and regulations that define how economic activity takes place in the United States.
  • The United States decision about infrastructure, education, and many other areas are made by the state and local governments which makes the entire economy build the capacity to run longer.
  • Decisions made by the Policymakers about how to allocate resources to various sectors like education, transportation, or other public goods are crucial to the United States economy.

To learn more about Local Government of United States, refer to:

brainly.com/question/24250104

#SPJ4

4 0
2 years ago
The Rhaegel Corporation’s common stock has a beta of 1.2. If the risk-free rate is 4.3 percent and the expected return on the ma
alexira [117]

Answer:

Cost of equity = 14.74%

Explanation:

The capital asset pricing model is a risk-based model for estimating the return on a stock..

Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk.

Systematic risks are those which affect all economic actors in the market, they include factors like changes in interest rate, inflation, etc. The magnitude by which a stock is affected by systematic risk is measured by beta.  

Under CAPM,  

E(r)= Rf + β(Rm-Rf)  

E(r)- cost of equity , Rf-risk-free rate , β= Beta, Rm= Return on market.  

Using this model, we can work out the value of beta as follows:  

β-1.2 Rf- 4.3%, Rm = 13%  

E(r) = 4.3% + 1.2 × (13 - 4.3)%=14.74 %

Expected return = 14.74 %

Cost of equity = 14.74%

8 0
3 years ago
After much consideration, you have chosen Cancun over Ft. Lauderdale as your Spring Break destination this year. However, Spring
denis-greek [22]

Answer:

B. The marginal cost of going to Ft. Lauderdale decreases.

Explanation:

Consider marginal cost and benefit before making a purchase.

Marginal cost is the increase or decrease of the cost of a particular actions.

Marginal benefit is the increase or decrease of the benefit of the action.

For example, if two items are identical and priced differently, the marginal benefit increases when the lower price is selected.

If two items are similar but not identical you would have to assess the cost and benefits of each more.

If marginal cost exceeds the marginal benefit you shuold not purchase the item or consider another option.

In this case, the only option that may reverse this desition is that the marginal cost of going to Ft. Lauderdale decreases.

7 0
4 years ago
Isaac Inc. began operations in January 2021. For some property sales, Isaac recognizes income in the period of sale for financia
lesya [120]

Answer:

$109,750,000

Explanation:

Note: <em>Options provided in the question belong to similar question but different numbers</em>

Deferred Tax liability = (Revenue from specific sales in 2021 - Cash received against it up to 2022) * Tax rate

Deferred Tax liability = ($621 million - $61 million - $121 million) * 25%

Deferred Tax liability = $439 million * 25%

Deferred Tax liability = $109,750,000

8 0
3 years ago
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