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Minchanka [31]
3 years ago
5

A bond issue with a face amount of $400,000 bears interest at the rate of 8%. The current market rate of interest is 9%. These b

onds will sell at a price that is:
Business
1 answer:
zimovet [89]3 years ago
5 0

The question is incomplete. The complete question is,

A bond issue with a face amount of $400,000 bears interest at the rate of 8%. The current market rate of interest is 9%. These bonds will sell at a price that is:

More than $400,000.

Equal to $400,000.

Less than $400,000.

The answer cannot be determined from the information provided.

Answer:

The bond sells at a price less than $400000

Explanation:

The coupon rate of bonds is the interest rate at which the bond will pay the interest. When the coupon rate of a bond is less than the market interest rate or the Yield to Maturity (YTM), the bond sells at a discount in the market. On the other hand, if the coupon rate of bond is greater than the market interest rate, the bond sells at a premium.

As the coupon rate of the given bond is 8% which is less than the market interest rate of 9%, the bond sells at a discount. Thus, the price at which the bond sells is less than $400000.

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If you can market well, you rely less on what you are selling, but more on getting the buyers' interest in the product
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3 years ago
During the month of March, Karen Company's employees earned wages of $68,000. Withholdings related to these wages were $5,202 fo
Ivan

Answer:

Journal entry to record wages expense and wages payable

Explanation:

As the company incurred no cost related to these earnings for federal unemployment tax so it would be excluded from wages and salaries expense

Entry                                                     DEBIT       CREDIT

Salaries and wages Expense          $68,000

Social Security(FICA)                                             $5,202

Federal income tax                                                $14,700

State income tax                                                    $6,300

union dues                                                              $900

Salaries and wages payable                                 $40,898

6 0
3 years ago
Which of the main components of money management involves creating a plan for spending and saving during particular time periods
photoshop1234 [79]

Answer:

C. budgeting

Explanation:

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6 0
3 years ago
This is the "T & D method that permits participants to assume roles such as president, controller, or marketing vice-preside
4vir4ik [10]

Options:

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Business games is attained and development technique through which an employees are made to assume roles like the President,the vice president of Organisations of one or more hypothetical Organisation, and compete against each other by manipulating certain factors in a particular business situation, this is aimed at equiping them with the needed skills and finding the best.

7 0
3 years ago
Which of the following is NOT an example of a caught-in or caught-between hazard?
liraira [26]
B cutting a finger while using a miter saw is the answer you are looking for. 
6 0
3 years ago
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