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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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The board of directors declared cash dividends totaling $1,200,000 during the current year. The comparative balance sheet indica
Salsk061 [2.6K]

Answer:

$1,350,000

Explanation:

The computation of the amount of cash payments to stockholders is shown below:

= Beginning balance of dividend payable + cash dividend declared - ending balance of dividend payable

= $250,000 + $1,200,000 - $100,000

= $1,350,000

To find out the amount of cash payments to stockholders we added the cash dividend declared and deduct the ending balance of dividend payable to the beginning balance of dividend payable

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3 years ago
While we talk about stock market as if it were one big entity, the reality is that there are many stock markets around the world
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The appropriate response is true. Stock market is the total of purchasers and dealers (a free system of financial exchanges, not a physical office or discrete substance) of stocks (likewise called offers), which speak to proprietorship guarantees on organizations.
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3 years ago
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What is the term that describes when two or more enterprises encounter each other in different regional markets, national market
snow_lady [41]

Answer:

Multipoint competition

Explanation:

Multipoint competition can be regarded as term used in describing a

process whereby there is engagement of a firm simultaneously in competitive interactions in a markets or across multiple products, resulting to competitive actions in a particular market leading to responses in a different/ multiple markets. Multipoint competition can also be explained as situation that exist when a firm is facing the same rival in different market. It should be noted that Multipoint competition is the term that describes when two or more enterprises encounter each other in different regional markets, national markets, or industries.

8 0
3 years ago
The problem of scarcity:
natali 33 [55]

Answer:

The correct answer is option b.

Explanation:

The problem of scarcity of resources is the basic problem in the study of economics. This problem exists because the resources are limited and have alternative uses. These resources are used to satisfy unlimited wants and needs.

So we need to determine the efficient allocation of these scarce resources such that we are able to get maximum satisfaction or utility from them.

Because of this scarcity problem, every economic decision involves some trade-off.

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Select the antecedent of the pronoun in the following sentence. The strikers will return to work when the union representatives
LenKa [72]

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3 years ago
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