1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sphinxa [80]
4 years ago
14

The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the dura

tion of the bond and does not fluctuate with market interest rates.
Business
1 answer:
lyudmila [28]4 years ago
3 0

Answer:

TRUE

Explanation:

The coupon rate for a bond is fixed and is paid by the issuer of the bond to the bondholder. The cash outlay/inflow to the issuer/bondholder is always the same reardless of the market rate.

The effect of the market rate is on the cost to acquire the bond in the secondary market. It do not change the coupon obligation.

You might be interested in
Your company, Johnson Farm Products, has decided to expand its traditional business serving farm owners in order to include home
Vlad1618 [11]

Answer:

Option A is correct

Explanation:

Communication serves the means of inspiring the worker to be proactive in the expansion of the company and making them see reason why, communication and education have four purposes which is informing, means of influencing actions and way of expressing feelings to people.

8 0
4 years ago
The Quick Buck Company is an all-equity firm that has been in existence for the past three years. Company management expects tha
labwork [276]

Answer:

$49.01 per Share

Explanation:

We can find the value of the unit share of company that will be dissolved at the end of year 2 by using the following formula:

<u>Current Price per Share = Value of Firm Today (Step1) / Number of Shares</u>

= $1,862,345 / 38,000 shares

= $49.01 per Share

<u></u>

<u>Step 1: Find the value of the firm in today's price by using the discounting technique</u>

Value of Firm Today = Cash Flow for Year 1 / (1+r)^1       +        Cash Flow for Year 2 / (1+r)^2

=  $860,000  / (1 + 11%)^1     +    $1,340,000 / (1 + 11%)^2

= $774,774  +   $1,087,571

= $1,862,345

7 0
3 years ago
The following data are the actual results for Marvelous Marshmallow Company for August:
Eddi Din [679]

Answer:

a. $26,200 Unfavorable

b. $16,800 Unfavorable

c. $ 5,000 Unfavorable

d. $48,000 Unfavorable

Explanation:

a Variable-overhead spending variance

<em>Variable-overhead spending variance = Budgeted Variable overheads at actual hours worked - Actual variable overheads</em>

                                                                = (33,400 × $ 12.00) - $ 427,000

                                                                = $400,800 - $ 427,000

                                                                = $26,200 Unfavorable

b. Variable-overhead efficiency variance

<em>Variable-overhead efficiency variance = (Actual Output × Standard hour × Standard rate) - (Actual hours × Standard rate per hour)</em>

                                                                = (8,000 × 4 × $ 12.00) - (33,400 × $ 12.00)

                                                                = $384,000 - $400,800

                                                                =  $16,800 Unfavorable

c. Fixed-overhead budget variance  

<em>Fixed-overhead budget variance  = Actual Fixed Overheads - Budgeted Fixed Overheads</em>

                                                       = $ 149,000 - $ 144,000

                                                       = $ 5,000 Unfavorable

                 

d. Fixed-overhead volume variance

<em>Fixed-overhead volume variance = Fixed overheads at Budgeted Production - Budgeted Fixed Overheads</em>

                                                       = ($ 144,000 / 12,000 × 8,000) - $ 144,000

                                                       = $96,000 - $144,000

                                                       = $48,000 Unfavorable

3 0
3 years ago
On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Ab
VLD [36.1K]

Answer:

Date   Account titles and Explanation     Debit ($)   Credit ($)

          Notes receivable                             200,000

                 Discount on notes receivable                       34,711

                 Sales revenue                                                 165,289

          (To record notes receivable)

Workings:

The PV of $200,000 due in 2 years at 10% = $200,000*0.82645 = $165,290

8 0
3 years ago
On January 1, the Elias Corporation issued 10% bonds with a face value of $56,000. The bonds are sold for $60,000. The bonds pay
photoshop1234 [79]

Answer:

$6,000

Explanation:

According to the scenario, computation of the given data are as follow:-

We can calculate the Interest Expenses of Total Bond by using following formula:-

Interest Expenses = Face Value × Rate of Bonds

= $56,000 × 10%

= $5,600

Amortization Expenses = (Bond Issue Price - Bond Face Value) ÷ Bond Term

= ($60,000 - $56,000) ÷ 10

= $400

Interest Expenses of Total Bond = Interest Expenses + Amortization Expenses

= $5,600 + $400

= $6,000

8 0
4 years ago
Other questions:
  • Chu Company provided the following information related to its inventory sales and purchases for December Year 1 and the first qu
    11·1 answer
  • 27. DORIS PURCHASED A NEW AUTOMOBILE ON CREDIT WHEN SHE WAS SIXTEEN YEARS OLD. TWO DAYS AFTER HER NINETEENTH BIRTHDAY SHE SOUGHT
    13·1 answer
  • Sheffield Corp. wants to produce and sell a new lightweight radio. Desired profit per unit is $2.50. The expected unit sales pri
    12·1 answer
  • A generic market Multiple Choice a. often includes consumers who will satisfy the same need in quite different ways. b. often in
    13·1 answer
  • El salvador practices ___________ which is a form of locking the value of a country's currency onto another currency.
    7·1 answer
  • The relationship between the passage of time and the value of assets is called:_________
    9·1 answer
  • A tire company's products are more expensive than those offered by its competitors, but are still sought by customers since they
    12·1 answer
  • which of the following individuals would be most critical of van buren's economy policy as presented in this excert?
    12·1 answer
  • How can I make money at 15
    15·1 answer
  • Ballard Company incurred a total cost of $8,600 to produce 400 units of pulp. Each unit of pulp required five (5) direct labor h
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!