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Amiraneli [1.4K]
3 years ago
13

When the market interest rate rises above the coupon rate for a particular quality of bond, the "current yield": will be below t

he coupon rate will be the same as the coupon rate will be above the coupon rate cannot be determined
Business
1 answer:
meriva3 years ago
4 0

Answer: will be above the coupon rate

Explanation:

The Coupon rate is a fixed rate that a bond issuer pays to it's bond holders. The <em>Current Yield</em> however is calculated by dividing the Coupon payment by the Price of the bond.

When Market interest rises above the Coupon Rate, the price of the bond decreases in the market and vice versa.

Because the price of the bond is now less and it is the divisor of the Coupon rate to get the Yield, it will give a higher percentage which will be more than the Coupon rate.

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Wriston Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be
ch4aika [34]

Answer:

$2,100

Explanation:

Cash Available = Opening Balance + Receipts - Disbursements - Desired Balance

                          = $15,000 +$89,600  - $72,500 - $30,000

                          = $2,100

Therefore,

The excess  of cash available over disbursements for the month would be  $2,100

7 0
3 years ago
Eugene owns a house and land in a middle-class neighborhood. he is upset that the mayor has increased the sales tax to fund publ
Feliz [49]
Eugene should not be upset because HIS PROPERTY VALUE HAS INCREASE. Sale tax refers to the consumption tax imposed by the government on the sales of goods and services at the point of sale. An increase in sale tax will  automatically increase the value of the land and the house that Eugene has in that area. If he sells the land later or rent out the house, he will make more money from the sale.  
6 0
4 years ago
You are scheduled to receive $100 in one year. If the interest rate increases, what will happen to the present value of this cas
ANEK [815]

Answer:

The present value decreases

Explanation:

The present value of an amount of $100 to be received in one year, at an interest rate 'r', is:

PV=\frac{\$100}{(1+r)}

As we can see, since the interest rate is in the denominator of the expression, if 'r' increases, then the present value decreases.

I.e. If the interest rate were zero, then $100 would buy the same amount of goods today as it would in one year, however, if the interest rate is positive, $100 today would buy more goods than it would in one year.

7 0
3 years ago
3. Prime Cuts was the brainchild of Cairn Terrier who guided all the marketing efforts of the product. She selected each element
Anna007 [38]

Question Completion with Options:

A) marketing consultant.

B) brand manager.

C) operations analyst.

D) marketing intermediary

Answer:

Prime Cuts

Karen obviously serves in the job of:

A) marketing consultant.

Explanation:

Brand managers ensure that the image perceived by customers of Prime Cuts remains recognizable, up to date, and exciting.  Brand managers promote and change the public perception of a brand's image. They ensure that the company's branding is consistent across advertising and other brand campaigns.  A marketing consultant or manager ensures that prospective customers are reached with Prime Cuts in order to present them with the goods and to increase sales.  She works to achieve effective marketing mix.

5 0
3 years ago
A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of
grin007 [14]

Answer:

See below.

Explanation:

In order to calculate setup cost allocation per unit, we first calculate the total setup costs for each product. These costs are then divided on the cost base which is the direct labor hours for each unit.

Total setup costs:

Plus

Direct Labor hours = 1,000

Setups = 20

Total costs = 20 * 1080 = $21,600

Total Setup Cost / labor hour = 21600 / 1000 = $21.6

Max

Direct Labor hours = 80,000

Setups = 40

Total costs = 40 * 1080 = $43,200

Total Setup Cost / labor hour = 43200 / 80000 = $0.54

We can calculate peer unit allocation of each product by multiplying the per hour rate calculated above with the number of hours used to make each product.

Plus = 21.6 * 5 = $108

Max = 0.54 * 5 = $2.7

These are the costs allocated per unit.

Hope that helps.

3 0
3 years ago
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