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gulaghasi [49]
2 years ago
10

If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate

on the bond has decreased. interest rates have probably increased since the bond was issued. the current yield on the bond is lower now than when the bond was originally issued.
Business
1 answer:
Law Incorporation [45]2 years ago
7 0

Answer:

the current yield on the bond is lower now than when the bond was originally issued.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.

A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.

Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.

You might be interested in
A typing instructor builds a regression model to investigate what factors determine typing speed for students with two months of
boyakko [2]

Answer:

The range that has a 95.45% probability that that student's typing speed will be in two months is [49.5, 65.5].

Explanation:

The compete question is:

A new student is taking 2 hrs of typing instruction per week, will practice 5 hrs per week and must type 2.5 hours per week for work. If the standard error of the estimate is 4, within what range do we have a 95.45% probability that that student's typing speed will be in two months?

Solution:

The regression equation formed by the typing instructor to investigate what factors determine typing speed for students with two months of instruction is as follows:

Y' = 11 + 7x_{1} + 5x_{2} + 3x_{3}

Here,

<em>Y</em>' = typing speed in words per minute

<em>x</em>₁ = hours of instruction per week

<em>x</em>₂ = hours of practice per week

<em>x</em>₃ = hours of typing per week necessary for school or work

Compute the value of <em>Y</em>' for the given values of <em>x</em>₁, <em>x</em>₂ and <em>x</em>₃ as follows:

Y' = 11 + 7x_{1} + 5x_{2} + 3x_{3}

    =11+(7\times 2)+(5\times 5)+(3\times 2.5)\\=11+14+25+7.5\\=57.5

So, the typing speed of this student in words per minute is 57.5.

The range providing the (1 - <em>α</em>)% prediction interval for values of <em>Y</em>' is:

Y=[Y'\pm t_{\alpha/2, (n-2)}\times SE]

Since the data selected is for 2 months the sample size is too large.

The critical value of <em>t</em> is 2.

Compute the range as follows:

Y=[Y'\pm t_{\alpha/2, (n-2)}\times SE]

   =[57.5\pm 2\times 4]\\\\=[57.5\pm 8]\\\\=[49.5, 65.5]

Thus, the range that has a 95.45% probability that that student's typing speed will be in two months is [49.5, 65.5].

6 0
3 years ago
The purpose of advertising is _____. to convince consumers that they can benefit from a product or service to entertain consumer
maksim [4K]

The correct question should be:

The purpose of advertising is _____.

a.) to convince consumers that they can benefit from a product or service.

b.) to entertain consumers.

c.) to take money from consumers communicate the facts about the product.

Answer: to convince consumers that they can benefit from a product or service.

Explanation:

Advertising aims at highlighting the benefits of consuming a particular product/service to a consumer.

Advertising is a marketing technique where a company pays to showcase the qualities of their product/services to their target consumers.

3 0
3 years ago
Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter ov
Nataly_w [17]

Answer:

The answer is b) $5,319,000.

Explanation:

We have cash collection in third quarter will include:

+ 40% of sales in third quarter which is made in cash;

+ 70% of the remaining 60% of credit sales in third quarter which is collected within the quarter;

+ The remaining 30% of 60% credit sales in second quarter which is collected in third quarter.

We also have:

Sales in second quarter (units) = 180,000 + 18,000 = 198,000 units => Sales revenue = 198,000 x 25 = $4,950,000 => Cash collection in third quarter = 30% x (60%x 4,950,000) = $891,000;

Sales in third quarter (units) = 198,000 + 18,000 = 216,000 units => Sales revenue = 216,000 x 25 = 5,400,000 => Cash collection in third quarter = 0.4 x 5,400,000 + 0.7 x (0.6 x 5,400,000) = $4,428,000

=> Total cash collection in third quarter = 891,000 + 4,428,000 = $5,319,000  

5 0
2 years ago
Read 2 more answers
Apply the accounting equation to the following problem. Total assets of Charter Company equal $700,000, and its equity is $420,0
natulia [17]

Answer:

The amount of its liabilities is 280000

Explanation:

In a business balance we can see the following accounting equation

liabilities + owners' equity= assets

liabilities = assets -owners' equity

liabilities = $700,000-$420,000

liabilities = $280,000

6 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $6 per
kupik [55]

Answer:

$192,000

Explanation:

Calculation for What is the value of ending inventory under variable costing

Using this formula

Value of ending inventory =[(Direct materials+Direct labor+Variable overhead+(Fixed overhead/Units produced)×Ending units in inventory]

Let plug in the formula

Value of ending inventory=[($6+ $4+ $5 + ($234,000/26,000 units) ×8,000 units]

Value of ending inventory= ($15 units+$9 units)×8,000 units

Value of ending inventory=$24 per units×8,000 units

Value of ending inventory = $192,000

Therefore the value of ending inventory under variable costing will be $192,000

8 0
2 years ago
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