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Natali5045456 [20]
3 years ago
5

A bond is issued at a discount when a​ bond's stated interest rate is​ ________. A. more than the effective interest rate B. equ

al to the market interest rate C. less than the market interest rate D. more than the market interest rate
Business
1 answer:
kiruha [24]3 years ago
8 0

Answer: C. Less than Market Interest rate

Explanation: When the interest rate on a bonds issued by an organization is lesser than the prevailing interest rate being offered in the market at a certain time on Bank deposits, loans or other interest bearing funds, organization tends to issue discounts on bonds in scenarios like this and as such bonds are being issued or traded at prices lower or below it's face value in other to encourage investors and bridge the interest gap between the bond rate and the market rate.

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Assume that the international Fisher effect (IFE) holds between the U.S. and the U.K. The U.S. inflation is expected to be 5%, w
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Answer:C. Real interest rates expected by British investors are 2 percentage points higher than the real interest rate expected by US investor.

Explanation:

The real interest rate is the market interest rate less the inflation rate.

The inflation rate always reduce the purchasing power of money which is the real measure of the purchasing power of money and not the money face value.

6 0
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1. Sam is preparing a speech for a small church group. He makes a list of his interests and lists all the related jobs he knows.
sineoko [7]

Answer:

Topic Building

Explanation:

Sam is at this point trying to build his topic for the speech.

It is based on this topic a speech write up will be made.

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3 years ago
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How many National Officers currently serve BPA?<br> O 8<br> 06<br> 09<br> 010
sukhopar [10]

Answer:

8

Explanation:

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3 years ago
Consider the case of the following annuities, and the need to compute either their expected rate of return or duration.
anastassius [24]

Answer:

1. 5.00%

2. 15.70 year

Explanation:

As per the data given in the question,

1)  For computing the interest rate we need to applied the RATE formula which is shown in the attached spreadsheet

Given that

Future value = 0

Present value = -$2587.09

PMT = $950

NPER = 3  years

The formula is shown below:

= RATE(NPER;PMT;-PV;FV)

The present value comes in negative

After applying the above formula, the interest rate is 5%

2)  For computing the number of years we need to use NPER i.e to be shown in the attachment below

Given that

Future Value = $920,925

Present Value  = 0

PMT = -$40,000

Interest rate = 5%

The formula is shown below

= NPER(RATE;-PMT;PV;FV)

The PMT comes in negative

After applying the above formula, the nper is 15.70 years

6 0
4 years ago
Creating a different and unique product is called a
polet [3.4K]

Answer:

Product Differentiation

Explanation:

This is simply a strategy used by marketers to make their product different from that of their competitors.

Product Differentiation aims to make a product different so that potential buyers would identify the uniqueness of the product from other similar products.

4 0
3 years ago
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