All categories

3 years ago

The sale of bonds above face value:_________

Business

1 answer:

Mnenie [13.5K]3 years ago

4 0

Answer: B. will cause the total cost of borrowing to be less than the bond interest paid

Explanation:

It should be noted that when a bond is sold above the face value, this will result into the total cost of borrowings to be less than the bond Interest that was paid.

The reason for the above is due to the fact that the borrower will not be required to repay the bond premium when the bond matures at its maturity date.

Therefore, the correct option is B.

You might be interested in

A ———- relationship would include your co-workers and friends?

yan [13]

A social relationship would include your co-workers and friends?

3 0

3 years ago

Boris tells a colleague all about a major prospect Boris plans to call on in the next few days and asks the colleague to pretend

Fittoniya [83]

Answer:

b. role playing is the correct answer.

Explanation:

This situation Boris and his colleague are engaged in role-playing.

Role-playing means imitating the behavior and role of someone else.

It takes place among two or more than two people that act the roles to explore the particular scenario.

In the business, role-playing is used to find out the problems from various perspectives and to improve communication among the team members.

The role-playing objective is to improve and develop the skills that are necessary for a particular position.

6 0

3 years ago

You are an underwriter for ABC Insurance. You receive a life insurance proposal for medical insurance with premium payment. The

Stella [2.4K]

do you want money i will give you

3 0

3 years ago

Compare investment alternatives You have two investment opportunities. One will have an 8% rate of return on an investment of $1

nasty-shy [4]

Answer:

15%

Explanation:

The maximum rate of return that would be paid to borrow an additional $4,000 needed can be calculated as

$Rate of return =\frac{Amount of interest}{Amount borrowed}$

Rate of return = $600/$4000

Rate of return = 0.15 or 15%

NOTE: The amount of interest is the difference of interest earned at higher yield and interest earned at a lower yield.

Interest earned (higher yield) = $10,000 x 8%

Interest earned (higher yield) = $800

Interest earned (lower yield) = $14,000 x 10%

Interest earned (lower yield) = $1,400

Difference = $1,400-$800

Difference = $600

3 0

3 years ago

Suppose the world population today is 7 billion, and suppose this population grows at a constant rate of 3% per year from now on

oksano4ka [1.4K]

Answer:

a) $P(t=100) = 7 e^{0.03*100}=140.599 billion$

b) $P(t=0) = 7 e^{0.03*0}=7 billion$

$P(t=1) = 7 e^{0.03*1}=7.21 billion$

$P(t=2) = 7 e^{0.03*2}=7.43 billion$

$P(t=10) = 7 e^{0.03*10}=9.45 billion$

$P(t=25) = 7 e^{0.03*25}=14.82 billion$

$P(t=50) = 7 e^{0.03*50}=31.37 billion$

c) Figure attached

d) Figure attached

Explanation:

The proportional model on this case would be given by:

$\frac{dP}{dt} = kP$

Where P is the population size, t the time on years and k a constant.

We can reorder this expression like this:

$\frac{dP}{P} = k dt$

If we integrate both sides we got:

$ln|P| = kt + C$

And using exponentials on both sides we got:

$P(t) = e^{kt} e^C = P_o e^{kt}$

Where $P_o=7 billion$ represent the initial amount for the starting year t=0.

The rate on this case is given $r =3\% = 0.03$ , so then our model would be given by:

$P(t) = 7 e^{0.03t}$

Part a

For this case we just need to replace t=100 and we got:

$P(t=100) = 7 e^{0.03*100}=140.599 billion$

Part b

For this case we have the following:

$P(t=0) = 7 e^{0.03*0}=7 billion$

$P(t=1) = 7 e^{0.03*1}=7.21 billion$

$P(t=2) = 7 e^{0.03*2}=7.43 billion$

$P(t=10) = 7 e^{0.03*10}=9.45 billion$

$P(t=25) = 7 e^{0.03*25}=14.82 billion$

$P(t=50) = 7 e^{0.03*50}=31.37 billion$

Part c

The graph is on the first figure attached.

Part d

If we take a log-log scale we have the following values

We need to exclude the point t=0 since the natural log for 0 is not defined.

ln 1 =0 , ln 2= 0.693, ln 10=2.30, ln 25 =3.22, ln 50= 3.91

The result would be the figure 2 attached. And we see a better result for the graph.

3 0

3 years ago