1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sveta [45]
3 years ago
14

C. Explain why the company was able to issue the bonds for only $9,738,256 rather than for the face amount of $11,000,000. The b

onds sell for less than their face amount because the market rate of interest is greater than the contract rate of interest. Investors Are not willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (market rate).
Business
1 answer:
yanalaym [24]3 years ago
5 0

Answer:

The bonds sell for less than their face amount because the market rate of interest is greater than the contract rate of interest. Investors Are not willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds (market rate).

Explanation:

When the required rate of return of investors is higher than the coupon rate of the bond, It means the investors have option in the market which offer more rate of return than the coupon rate offered by the bond, So the value of the bond falls which ultimately compensate the difference of investors required rate of return and Coupon rate.

You might be interested in
On average, managers spend the least amount of time doing which managerial activity?
Aleks [24]

On average, managers spend the least amount of time doing the managerial activity is networking.

What is networking?

Networking is the technique  of making connections with respect  of the business environment. Managers very often  get involved in developing  relationships and making their own networks. They are accountable for monitoring and completing the given task in an effective  way. So, they basically  focus on many managerial activities like decision-making, planning things, communicating the required information, managing employees, etc.

Which managerial function is the most important?

The  most important function of management is Planning. Planning means  setting objectives in order to achieve , a goal in a limited time period .Several alternatives are formulated in order to achieve the goals.

Learn more about managerial activity:

brainly.com/question/26106218

#SPJ4

6 0
2 years ago
The rate of interest on money held in a savings account, _______ the amount of money saved.
KIM [24]
A. Decreases


Hope it helps!
4 0
3 years ago
The total output of the economy is bought by which of these groups of spenders?
Furkat [3]
Consumers
Businesses
And Governments
5 0
4 years ago
What is a computer network?
Leona [35]

Answer:

A.)

Explanation:

two or more connected computers

6 0
3 years ago
The catalyst for the market revolution was a series of innovations in
lord [1]

The innovation of Transportation and Communication act as catalyst for Market Revolution in the 18th Century.

The term "Market Revolution" describes a fundamental transformation to the U.S. economy in the 18th and 19th Century as a result of widespread mechanization of industry and the expansion of various domestic and foreign economic markets.

The revolution brought about an explosive economic growth and new personal wealth in the country.

The impact of the transportation and communication industry brought about the increased improvement in Market Revolution because its speed and lowered the expense of commerce during the period.

Therefore, in conclusion, the Transportation and Communication are the catalyst for the Market Revolution.

Learn more about Market Revolution here

<em>brainly.com/question/8173033</em>

3 0
3 years ago
Other questions:
  • Lyle’s manager just handed him a list of goals for the year. Because Lyle had no say in setting these goals, he isn’t sure that
    15·2 answers
  • In many high-end resort markets, Westin hotels compete directly with Crown Plaza hotels. When it comes to pricing, Westin tends
    15·1 answer
  • Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. Aprofit margin of
    11·1 answer
  • "1. When a T-shirt manufacturer states, ""We sell it only in black because that way we can buy plenty of black fabric and run ou
    7·2 answers
  • Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey estimated its overhead costs at $220
    10·1 answer
  • FX Services granted 15 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated with
    15·1 answer
  • Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000, but does not increase GDP.
    9·1 answer
  • The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell to earn a pr
    9·1 answer
  • MasterCard managers are motivated to increase (1) the number of individuals who have and use a MasterCard credit card, (2) the n
    7·1 answer
  • The study of economics is primarily concerned with:
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!