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Hoochie [10]
2 years ago
9

22. The price at which a bond sells is equal to the: A) Sum of the future interest payments, plus the maturity value of the bond

s. B) Maturity value of the bonds plus the present value to investors of the future interest payments. C) Sum of the future interest payments, minus the maturity value of the bonds. D) Present value to investors of the future principal and interest payments.
Business
1 answer:
malfutka [58]2 years ago
7 0

Answer:

B) Maturity value of the bonds plus the present value to investors of the future interest payments.

Explanation:

Bond price is the present discounted value of the future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity. To calculate the bond price, one has to simply discount the known future cash flows.

If a bond's coupon rate is more than its YTM, then the bond is selling at a premium. If a bond's coupon rate is equal to its YTM, then the bond is selling at par. Formula for yield to maturity: Yield to maturity(YTM) = [(Face value/Bond price)1/Time period ]-1.

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The production possibility frontier is used to illustrate the concept of A) the laissez-faire economy. B) opportunity costs. C)
julia-pushkina [17]

Answer:

B) opportunity costs.

Explanation:

The production possibility frontier is used to illustrate the concept of <u>opportunity costs</u>. The production possibility frontier shows the combination of goods which can be produced by making use of all the available resources in an economy. In order to produce an extra unit of one good, some amount of other good has to be sacrificed. This is known as opportunity cost.

6 0
2 years ago
Last week, the Citizens for a Greener America sent a formal letter to Tee Time Golf Resort requesting that the private club meas
Lorico [155]

Answer:

3) a watchdog group.

Explanation:

"Citizens for a Greener America" is an organization that tries to monitor the carbon footprint of other institutions and then will make the information they discover public.

"Citizens for a Greener America" acts as a watchdog group that tries to discover and make public undesirable activities carried out by government, public or private organizations.

6 0
3 years ago
Regardless of the inventory costing system used, cost of goods available for sale must be allocated at the end of the period bet
MaRussiya [10]

Answer:

The correct answer is ending inventory and cost of goods sold

Explanation:

Cost of goods available for sale is defined as the maximum amount of the inventory or the goods which the company could possibly sell during the fiscal or accounting period.

The cost of goods which are available for sale need to be allocated among the cost of goods sold and the ending inventory at the end of the year, where the cost of goods equals to the cost of goods available for sale subtract the ending inventory.

6 0
2 years ago
A company borrowed $15,000 by signing a 120-day promissory note at 10%. The total interest due on the maturity date is: (Use 360
topjm [15]

Answer: $500

Explanation:

Interest for the period = Amount borrowed * Interest rate * 120/360 days

= 15,000 * 10% * 120/360

= $500

7 0
3 years ago
Shares of common stock of the Samson Co. offer an expected total return of 13.0 percent. The dividend is increasing at a constan
krok68 [10]

Answer:

b. 7.60 percent.

Explanation:

Dividend yield = expected return - dividend growth rate

  • expected return = 13%
  • dividend growth rate = 5.4%

dividend yield = 13% - 5.4% = 7.6%

Dividend yield is a financial metric that measures the rate of return that a stockholder receives every time a dividend is distributed. You can also calculate it by dividing dividends received by stock price.

4 0
2 years ago
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