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nikitadnepr [17]
2 years ago
9

The annual interest payment on bonds: decreases over the life of the bonds when bonds are issued at a discount. stays constant o

ver the life of the bonds, regardless of whether bonds are issued at par, a discount, or a premium. increases over the life of the bonds when bonds are issued at a discount. increases over the life of the bonds under the effective-interest method, but stays constant under the straight-line method of amortization.
Business
1 answer:
Otrada [13]2 years ago
8 0

Answer:

stays constant over the life of the bonds, regardless of whether bonds are issued at par, a discount, or a premium.

Explanation:

The Annual Interest payment is calculated as follow

Annual Interest payment = Face value x Coupon rate

The Face value and coupon rate remain the same because these are constant values.

The interest payment is independent of the price of the bond. Whether the bond is issued on premium or on discount, the interest payment remains the same

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A name, term, symbol, design, or any combination of these that identifies a product and distinguishes it from a competitor’s pro
HACTEHA [7]
If this is a true or false question, then the answer is False. It is not the packaging that determines the product from the competitors but the branding. A brand is an identification of its manufacturing company, it may comprise a name, symbol and/ or design.
7 0
3 years ago
After the financial crisis, consumers' incomes fell. How does it affect concert demand and its ticket price? A) Demand for conce
Marysya12 [62]

Answer:

B) Demand for concert decreases. As a result of the shift, ticket price decreases.

Explanation:

A shift in demand that is as a result of other factors except for price results in a shift of demand. A reduction of price as a result of the financial crises will lead to a shift of demand to the left.

Demand for cinema tickets will reduce at all price level.

Referring to the attached diagram the demand shift will result in lower quantity demanded from Q to Q2.

Also there is a reduction of equillibrum price from P to P2.

8 0
3 years ago
A small business has determined that the machinery they currently use will wear out in 16 years. To replace the new machine when
Vlad [161]

Answer:

The initial deposit should be of: $97,439.62

Explanation:

Giving the following information:

To replace the new machine when it wears out, the company wants to establish a savings account today. The interest rate on the account is 1.9 percent per quarter and the cost of the machinery is $325,000.

To calculate the initial investment required, we need to use a variation on the simple interest future value formula:

FV= PV*(1+i)^n

PV= present value

Isolating PV:

PV= FV/(1+i)^n

i= 0.019

n= 4*16= 64

FV= 325,000

PV= 325,000/ (1.019^64)= $97,439.62

8 0
3 years ago
Which of the following options strategies would be best for an investor interested in maintaining his long position in the marke
9966 [12]

Answer:

buying puts

Explanation:

A put option is a sale option. It gives the buyer the right (but not the obligation) to sell an asset in the future to the seller of the option at a previously determined price.

The owner or buyer of a put option benefits from the option if the underlying asset falls, that is, if when the put option expires, the asset (a share for example) has a price lower than the agreed price . In that case, the option buyer will exercise his right and sell the asset at the agreed price and then buy it at the current market price, earning the difference.

If the price turns out to be higher than the agreed price, known as the strike or strike price, the buyer will not exercise his right and will simply have lost the premium he paid to acquire the option. Therefore, your benefit may be unlimited, but your loss is limited to the premium you paid.

8 0
3 years ago
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the lab
maw [93]

Answer:

The productivity increased from 0.89 carts pwe worker per hour to 0.93 arts per worker per hour.

Explanation:

5 worked make 80 carts per hour

Worker receive $10 dollar per hour = $50 dollars wages epxense

Machine cost  $40 dollar per hour

A worked is crow-out from factory and the equipment cost increased by $10

The total cost still is $90 dollars but the output now is 84 carts

Labor Productivity (before purchase of new equipment)  

80 carts

(5 wkrs .∗$ 10 per hr .)+$ 40

= 0.89 carts per worker per hour

Labor Productivity (after purchase of new equipment)

84 carts

(4 wkrs .∗$ 10 per hr .)+$ 50

= 0.93 carts per worker per hour

<u>Question missing:</u>

Compute labor productivity under each system (before and after the purchase of new equipment). <u>Use carts per worker per hour</u> as the measure of labor productivity.

7 0
3 years ago
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