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Sedaia [141]
3 years ago
9

A 6 percent, annual coupon bond is currently selling at a premium and matures in 7 years. The bond was originally issued 3 years

ago at par. Which one of the following statements is accurate in respect to this bond today?a. The face value of the bond today is greater than it was when the bond was issued.b. The bond is worth less today than when it was issued.c. The yield-to-maturity equals the current yield.d. The coupon rate is less than the current yield.e. The yield-to-maturity is less than the coupon rate.

Business
2 answers:
Ksju [112]3 years ago
8 0

Answer:

e. The yield-to-maturity is less than the coupon rate.

Explanation:

When the yield is lower than the coupon rate, the bond is considered to be trading at a premium.

Price of bond = Present value of future coupon payments and present value of par value to be recieved on the date of maturity, discounting is done athe the rate at which market is prevailing.

Hence, if the yield rate is the prevailing market rate,coupon rate is compared to yield rate to invest in bond because the coupon is more compared to market rate.

Thus the investors would be charged more than the par value which is being traded at premium in order to set off the benefit of the payments of coupon.

vekshin13 years ago
6 0

Answer and Explanation:

the answer is attached below

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A corporation has $7,000,000 in income after paying preferred dividends of $500,000. The company has 1,000,000 shares of common
Finger [1]

Answer:

Price earning ratio= 8  times

Explanation:

Price earning ratio = Price per share /Earnings per share

Price per share = 56, EPS =?

Price per share =56, EPS = Total earnings available to ordinary shareholders/Number of shares

7,000,000/1,000,000= $7  per share

Price earning ratio = 56/7= 8  times

Price earning ratio= 8  times

                         

8 0
3 years ago
Chuck offers $240,000 for a house. The seller turns down the offer but says she will sell the house for $260,000. However, Chuck
qaws [65]

Answer:

Chuck must be less than $260,000

Explanation:

The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.

6 0
3 years ago
Let's say the intended audience for your historical analysis essay about the legal battle for women's suffrage is a group of civ
Leya [2.2K]

Answer:

In the event that I go to a social equality promotion gathering, I will be an expert in my view to characterize the lawful foundation of the constitution and the nineteenth amendment. I'll give the standard to add alteration to stating "as you most likely are aware" to abstain from misunderstanding with them.I additionally utilize propelled phrasing to present to legal counselors. Let me quickly outline the ladies rights development for secondary school understudies and afterward disclose how to fix it. I additionally utilize less modern words to assist understudies with dodging disarray. In the two gatherings I might want to incorporate the fix procedure in light of the fact that the introduction is proposed and regardless of whether a few gatherings definitely know data, it is a significant piece of the introducing time.

5 0
3 years ago
Whats the estimate sum for 3/56+8/9
valentinak56 [21]
You can make 9 into a fraction with the denominator of 56.

8/9= 48/56 (multiply both by 6)

Just add three to the numerator. We can round 48 to 50, so:

50/56+3/56= 53/56 That would be the estimation.

I hope this helps!
~kaikers
4 0
3 years ago
Which of the following statements is more likely if cash and marketable securities increase by $5,000 during a period in which c
Goryan [66]

Answer:

C) Debt increases by more than cash dividends paid

Explanation:

Based on the information given the statements that is more likely based on the below calculation will be : DEBT INCREASES BY MORE THAN CASH DIVIDENDS PAID reason been that the NET INCREASE IN THE CASH from financing activities was the amount of $4,500

Net Increase In The Cash from financing activities = $5000 - $1000 + $500

Net Increase In The Cash from financing activities= $4500

4 0
3 years ago
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