Answer: A
Explanation: There is a higher risk for banks when they give an unsecured loan. Secured loans have a collateral to back the loan, whereas unsecured loans are not a secure (hence the name).
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Answer:
the amount of increase in the common stock is $75,000
Explanation:
The computation of the amount of increase in the common stock is shown below;
= Number of shares of common stock sold × stated value per share
= 15,000 shares × $5 per share
= $75,000
Hence, the amount of increase in the common stock is $75,000
Answer: 10%
Explanation:
When the price of a bond is at par, it means that the coupon rate and the Yield to Maturity are the same.
The Coupon rate is the interest rate that the Issuer of the bond pays the bond holders as a percentage of Par.
The Coupon payment here is $100 and the rate is;
= 100/1,000
= 10%
<em>Coupon Rate = 10% = Yield to Maturity </em>
Answer: Answer is 1
Explanation:
In a market economy, a high price is a signal for producers to supply more and consumers to buy less.
