Answer:
a. Premium
b. Discount
c. Discount
Explanation:
a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 7% - 6% = 1% premium
Therefore, Valley's bond will sell at a premium.
b. Spring issued $220,000 of bonds with a stated interest rate of 5 percent. At the time of issue, the market rate of interest for similar investments was 6 percent.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, Spring's bond will sell at a discount.
c. River Inc. issued $150,000 of callable bonds with a stated interest rate of 5 percent. The bonds were callable at 102. At the date of issue, the market rate of interest was 6 percent for similar investments.
Premium (discount) = Bond's stated interest rate - Market rate of interest for similar investments = 5% - 6% = -1% discount
Therefore, River Inc.'s bond will sell at a discount.
A unit volume objective for pricing should be used judiciously because higher volume goals can sometimes result in higher pricing. This is further explained below.
<h3>What is the pricing?</h3>
Generally, set the price for the goods or services to be exchanged.
In conclusion, When setting prices, a unit volume aim should be utilized with caution since volume objectives that are more ambitious may often lead to higher prices.
Read more about pricing
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Answer:
Businesses use microeconomic principles to make decisions regarding the following factors: labor, productivity, types of goods and services offered, supply and demand, economic utility, and pricing
Answer:
The correct solution is "
".
Explanation:
According to the question,
Let,
For stock 1,
The number of shares to be purchased will be "
".
For stock 2,
The number of shares to be purchased will be "
".
For stock 3,
The number of shares to be purchased will be "
".
then,
The cumulative number of shares throughout stock 1 would be well over or equivalent towards the approximate amount of all the shares or stocks for the set limit.
i.e., 
Thus the correct equation is "
".
Answer:
d. $13,100
Explanation:
Net Present value = [Future Annual cash flows * PVIFA (3, 9%)] - Initial investment
Net Present value = [$100,000*2.531} - $240,000
Net Present value = $253,100 - $240,000
Net Present value = $13,100
