A bond will sell at premium when its coupon interest rate <u>exceeds the market interest rate on similar bonds.</u>
Explanation:
Premium bonds are the bonds that are trading above par in the market. Further on the bond would trade on premium only when it offers a coupon rate exceeding the market rate that is being offered on similar bonds.
In simple lay man's language, the term premium and discount can be understood to carry a crude definition of high and low demand. When the demand would be high, the bonds would fetch a higher value and vice-versa.
Thus Bonds would highly be valued when it is paying interest that is greater than the interest prevailing in the market contemporarily.
Answer: The correct answer is "a. $26,000".
Explanation: Implicit costs: Also known as opportunity costs have to do with alternative profit options, or money that we no longer receive when performing certain commercial actions.
A person incurs implicit costs when he waives an alternative action.
Implicit costs: $20000 + $6000 = $26000.
Answer:
$19.21
Explanation:
The computation of the unit cost per item is as follows:
Beginning merchandise inventory $52,000
Add: Purchases + freight in $293,000 ($280,000 + $13,000)
Less: Ending merchandise inventory -$54,900
Cost of goods sold $290,100
Now the cost of goods sold per unit is
= $277,100 ÷ 15,100 units
= $19.21
Based on the sales revenue and the net accounts receivable, the receivables turnover ratio is 12 times .
<h3>What is the receivables turnover ratio?</h3>
This can be found as:
= Net sales revenue / Average accounts receivable
Solving give:
= 720,000 / (62,000 + 58,000) / 2
= 720,000 / 60,000
= 12 times
Find out more on receivables turnover ratio at brainly.com/question/27523896.
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