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oksano4ka [1.4K]
3 years ago
13

A bond issue with a face amount of $500,000 bears interest at the rate of 10%. The current market rate of interest is also 10%.

These bonds will sell at a price that is: Multiple Choice The answer cannot be determined from the information provided. Equal to $500,000. More than $500,000. Less than $500,000.
Business
1 answer:
MakcuM [25]3 years ago
5 0

Answer:

Equal to $500,000

Explanation:

As we know that if the market interest rate is higher than the bond interest rate,  than the bond is sold at discount, and if the market interest rate is less than the bond interest rate than the bond is sold at the premium.

And, if the market interest rate equal to the bond interest rate,  then the bond is sold at par

Since as we can see that  both the bond interest rate and the market interest rate is 10% that means the bond is sold at par i.e $500,000

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Exporting can be a way to test market demand for a product. Many companies turn to agents and/or distributors to represent them
Mkey [24]

Answer:

This approach minimizes the risk business has to take during foreign ventures. Such as finding new markets, storing the products till distribution, handling customer records and grievances and so on.

In other words, the cost of participating overseas.

Explanation:

Imagine you own a company that produces toys. Exporting your own product is profitable. Yet when the demand and the customer base grow, it becomes difficult to hand the distribution of the product, financials, tax/legal requirements and documentation all by your self.

An authorized agent or a distributor make the work much easier as they support you in various tasks we've mentioned above.

In the process, you'll have more time to think of new ways to grow your business while your agent/distributor handle the day to day tasks in operations.

7 0
4 years ago
The Oxford Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $
kenny6666 [7]

Answer:

The correct answer is 5%.

Explanation:

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

We can calculate the growth rate by using following formula:

Growth rate = (Dividend of 3rd year ÷ Dividend of 1st year)^1/2 -1

By putting the value in the formula, we get

Growth rate = ($4.41 ÷ $4 )^1/2 - 1

= ( $0.41)^1/2 -1

= 0.05 or 5%

3 0
3 years ago
An 85-year old retired client has living expenses of $15,000 per year. His portfolio is currently allocated: 50% Money Market Fu
Slav-nsk [51]

Answer:

Explanation:

The best recommendation in this scenario would be to liquidate half of the money market fund and invest it in 5 year corporate debentures yielding 2.70%. This is because traditionally money market funds, although highly liquid, only offer an average of 1% return on investment for the capital invested. Investing instead in a corporate debentures yielding would net the individual more than double in ROI and hopefully cover all of the living expenses.

3 0
3 years ago
If I read 12 pages in 15 minutes how many pages while I read in two hours
N76 [4]

Answer:

96 pages in two hours

Explanation:

You can read 48 pages in 1 hour because 15 x 4 is 60, and 12 x 4 is 48. So you just double 48 and you get 96.

3 0
3 years ago
Read 2 more answers
At December 31, 2011, Newman Engineering’s liabilities include the following:1. $10 million of 9% bonds were issued for $10 mill
Nadusha1986 [10]

Answer:

total long term debt: 24,000,000

Explanation:

the 1988 bonds will be long-term debt as there is no suggestion to the option to be exercised.

The 1978 bonds will be current liabilities as they matures at 2012

which is within the twelve months time period to be classified as current laibily.

the note payable has an agreement with the bank to not claim it at least until June 2012 The most probable reason is that the 1978 bonds are generating this situation, so once they are retired the normal 2 to 1  ratio will be acomplished, so the note payable will be kept at long term debt

but a note tothe financial statemtn should be made

Long term debt:

1988 bonds:   10,000,000

note payable  14,000,000

total                24,000,000

6 0
3 years ago
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