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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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KengaRu [80]

I guess the correct answer is Backed by real wealth

A difference between money issued by colonies and money issued by the Continental Congress was that money issued by each colony was backed by real wealth.

5 0
3 years ago
A customers calls her broker to discuss her account. The broker recommends that the customer buy 500 shares of DEF stock. The cu
KIM [24]

Answer:

A. <u>Market Order</u>

Explanation:

In a market order, the securities are bought and sold immediately at the current market price prevailing at that time of the day.

Under this, order size is entered such as quantity of stock, the action to be taken i.e buy or sell and no buying/selling rate is mentioned, rather "market" option is checked.

Such market price keeps fluctuating every every moment so the order would be completed at that price which prevailed at that exact moment.

In the given case, the broker upon instructions of the client immediately got the order executed of 500 shares in less than a minute. This is the case of market order wherein the order was executed at current market price.

3 0
3 years ago
If u want to use a tv show name as ur brand name would it be illegal ?? plz answer asap
Vikentia [17]
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7 0
2 years ago
Which element of the business model addresses what a firm provides that other firms do not and cannot?
BaLLatris [955]

Value proposition addresses what a firm provides that other firms do not and cannot.

A company is a commercial enterprise, usually set up as a partnership, that provides professional services such as legal and accounting services. Corporate theory assumes that companies exist to maximize profits.

To describe a person as steadfast means that he acts in a way that does not change his mind, or that he is in control. She had to be firm with him. "I don't want to see you anymore."

A firm can be a company. B. A consumer goods store that offers physical products. It can also represent a service provider such as a hairdresser. The term firm may refer to any for-profit business, but it is more commonly used to describe businesses in specific industries such as law or accounting.

Learn more about firm here:brainly.com/question/25491204
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7 0
1 year ago
If the Fed sells​ $2 million of bonds to the First National​ Bank, what happens to reserves and the monetary​ base?
Sindrei [870]

Answer:

Reserves fall by $2 million, and the monetary base falls by $2 million.

Explanation:

In the books of First National​ Bank, the purchase of $2 million of bonds by First National​ Bank, from the Federal Reserve means there is a reserve with the Federal Reserve represented by security which stands as asset.

In the books of the Federal Reserve, The sales of bonds to First National​ Bank will create a liability from the reserve assets.

See attached for the T-accounts explain the answer    

Download docx
4 0
3 years ago
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