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stiks02 [169]
3 years ago
13

A bond will sell at a premium (above par value) ifA) the market value of the bond is greater than the discount rate of the bond.

B) investor's current required rate of return is below the coupon rate of the bond.C) current market interest rates are moving in the same direction as bond values.D) the economy is in a recession.
Business
1 answer:
Anna11 [10]3 years ago
3 0

Answer:

B) investor's current required rate of return is below the coupon rate of the bond.

Explanation:

A bond that is sold at a price above its face value is said to be sold at a premium. A bond sells at a premium when its coupon rate is above the market's required rate of return.

When a bond is sold at a premium, it yields an interest rate which is lower than its coupon rate. For example, a bond's face value is $100 and its coupon rate is 8%. If the bond sells at a premium for $110, it will still pay the same coupon, but it will yield a 7.3% interest rate.

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Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel e
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<u>Solution and Explanation:</u>

<u>The following is the selling and administrative expense structure of the Fazel company for the year. According to the given information and the data:</u>

The Variable selling expenses (19730000* 3%)                 591900

The Fixed Expenses  

The Salaries expense              960000  

The Utilities expense              365000  

The Office space expense         230000  

The Advertising expense         1200000  

The Total Fixed expense                                                  2755000

The Total selling & admin Expense                                  3346900

<u>Note:</u> the variable expense is calculated by multiplying the total sales given in the question with the percentage of the commission given

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3 years ago
Maya got a job transfer from Italy to New York. After working for some time in New York, she started to understand the mental mo
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Answer:

C. The capacity to empathize and act effectively across cultures.

Explanation:

Since in the question it is mentioned that the use the words and behavior that are compatible with the new york local culture so here the global mindset that arise in her life represent the attribute with related to the capacity for empathizing and it act effectively over and across the culture

so as per the given situation, the option c is correct

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3 years ago
The income effect indicates that a ______ price increases the purchasing power of income, enabling consumers to purchase ______
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Answer:lower;more

Explanation:

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1 year ago
Name a car manufacture that are not included in this list
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Read 2 more answers
A firm has the following accounts and financial data for 2007:
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Answer:

The correct answer is $302.40.

Explanation:

According to the scenario, the computation can be done as:

To calculate firms' earning first we less cost of goods and total operating expenses from sales revenue:

= $3,060 - $1,800 - 600

= $660

Now we deduct the interest expense, then

= $660 - $126

= $534

Now we deduct tax rate, then

= $534 × $213.60    ( $534× 40%)

= $320.40

Now we finally deduct the dividends to get the firm's earning to common shareholder's, then

= $320.40 - 18

= $302.40

Hence, the firm's earning to common shareholder's is $302.40.

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4 years ago
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