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Anarel [89]
3 years ago
12

Merkel Corporation issues $200,000 face amount bonds with a stated interest rate of 6%. If the market interest rate is 5%, the b

onds will issue at
Business
1 answer:
VMariaS [17]3 years ago
7 0

Answer:

At a premium to the face amount

Explanation:

The bond has a higher coupon rate compared to its market interest of 5%, hence, the bond would be issued at a premium, in other words, the proceeds from the bond issuance would be more than the face  amount of $200,000 as shown below using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:

N=20(let us assume it has 20 years to maturity and pays a coupon annually)

PMT=12000 (annual coupon=face value*coupon rate=$200,000*6%=$12,000)

I/Y=5(market interest rate without the % sign)

FV=200000

CPT

PV=$224,924.42($24,924.42 premium)  

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Susan is a sales representative for a u.s. weapons manufacturer. she makes a $100,000 "grease" payment to a u.s. government offi
Vsevolod [243]

Answer: False

Explanation:

<em>The given statement from the following case/scenario is false</em> because in accordance to the rules of law of United States of America , the payments made to foreign officials are always deductible. Therefore the payments that are made by Susan to the Saudi officials are deductible, unless and until they are illegal .

7 0
3 years ago
If Cassandra bought 16 cotton blouses last year when her income was $40,000 and she buys 14 cotton blouses this year when her in
Feliz [49]

Answer: Normal good

Explanation:

A normal good is a good that has a positive correlation between its income and demand. This means that for a normal good, an increase in income will lead to an increase in the demand for the good while a reduction in income will also lead to a reduction in the demand for the good.

Cassandra bought 16 clothes when her income was $40000 but when her income reduced to $35000, she bought less of the good. That means that the cotton blouses bought by Cassandra are normal good.

8 0
3 years ago
Read 2 more answers
Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If t
Llana [10]

Answer:

$1,015.96

Explanation:

The Price of the Bond (PV) can be calculated as follows :

Fv = $1,000

Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20

n = 9 × 2 = 18

p/yr = 2

i = 7.79%

pv = ?

Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96

6 0
3 years ago
What does a real estate license holder serving as a representative in an intermediary transaction offer to a client that was not
ra1l [238]

Real estate license holder serving as a representative in an intermediary transaction offer <u><em>advice and opinions</em></u> to a client that was not offered under dual brokerage.

The appointment of Real Estate license holders to assist buyers and sellers in an intermediary transaction enables those real estate license holders to provide advise and opinions during the course of talks, in contrast to the practice of dual brokerage. Under the dual brokerage system, license holders were expected to act in a fair and impartial manner. Commission fees are not tied to representation, and it is against the law for license holders to expose sensitive information belonging to the other parties involved in a transaction.

To know more about real estate refer to:

brainly.com/question/10336196

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7 0
2 years ago
Suppose the​ risk-free return is 6.5 % and the market portfolio has an expected return of 10.3 % and a standard deviation of 16
CaHeK987 [17]

Answer:

= 7.678%

Explanation:

Data provided

Risk free rate = 6.5%

Beta = 0.31

Marker return rate = 10.3%

Risk free rate = 6.5%

The computation of expected return is shown below:-

Expected return = Risk free rate + Beta × (Marker return rate - Risk free rate)

= 6.5% + 0.31 × (10.3% - 6.5%)

= 6.5% + 0.31 × (3.8%)

= 6.5% + 1.178%

= 7.678%

4 0
3 years ago
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