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3 years ago

econ The presence of secondary markets ______________ the interest rates that firms have to pay on bonds issued by them.

Business

1 answer:

OlgaM077 [116]3 years ago

3 0

Answer:

decrease

Explanation:

Secondary markets decrease the interest rates that organizations have to pay on issued bonds. With the presence of secondary markets, companies that issue bond can then pay lower rates of interest and still sell the entire bonds needed. What the secondary market does is that it bids up the bonds price above their face values. This therefore makes interest that will be paid a lower percentage, and thus leads to lower ROI and yield.

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The days' sales uncollected ratio is used to: Multiple Choice Estimate how much time is likely to pass before the amount of acco

olchik [2.2K]

Answer:

The days' sales uncollected ratio is used to: Estimate how much time is likely to pass before the amount of accounts receivable is received in cash

Explanation:

The days' sales uncollected ratio is an Asset Management ratio which calculates the length of time that it to collect credit from a customer and the first option is correct.

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3 years ago

Hart Technology must accrue a loss contingency. The amount of the loss can be reasonably estimated within a range of outcomes. O

Shtirlitz [24]

The amount of loss that should be recognized is the <u>minimum amount </u><u>of the </u><u>range. </u>

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<h3>Recording a Contingent liability </h3>

It should only be recorded if the loss is probable and the amount to be incurred as liability can be reasonably estimated.
If neither of the above are possible, the loss would be recorded as a footnote.

US GAAP rules state however that if the loss is probable and the amount is in a range, the amount to be recorded as a contingent liability should be the minimum of the range.

In conclusion, they should recognize the minimum amount.

Find out more on contingent liabilities at brainly.com/question/17371330.

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2 years ago

Explain why the basic economic problem will even affect Bill Gates (Founder and Chairman of Microsoft and one of the world’s wea

Grace [21]

<span>The basic economic problem will affect Bill Gates who is one of the the world's wealthiest people because scarcity of resources is more so related to goods and services, and not how much money one may have. While he may be able to buy all the goods and services he wants as many as he wants for a unlimited amount time, he could only have access to those things if they are available.</span>

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3 years ago

Select the correct answer.

kramer

Answer: The department of Agriculture

Explanation:

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3 years ago

Amram Inc. can issue a 20-year bond with a 6% annual coupon at par. This bond is not convertible, not callable, and has no sinki

Reil [10]

Answer:

B) The coupon rate could be less than, equal to, or greater than 6%, depending on the specific terms set, but in the real world the convertible feature would probably cause the coupon rate to be less than 6%.

Explanation:

Amram Inc. is issuing two bonds, one is not convertible and the other one is convertible and callable. Regardless of the coupon rate that they plan to set, convertible and callable bonds will usually (almost always) have a coupon rate that is lower than non-convertible or non-callable bonds.

Convertible bonds are bonds that can be converted or exchanged to common stock. Since convertible bonds offer more investment options, their risk is lower than non-convertible bonds.

Callable bonds is a bond that can be redeemed before the maturity date.

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3 years ago