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Leokris [45]
3 years ago
12

If the market rate of interest is 7%, the proceeds of 6% bonds paying interest semiannually with a face value of $300,000 will b

e a.equal to $300,000. b.less than $300,000. c.greater than or less than $300,000, depending on the maturity date of the bonds. d.greater than $300,000.
Business
1 answer:
inn [45]3 years ago
4 0

Answer:

b. less than $300,000

Explanation:

Based on the information given since the proceeds of 6% bonds is lower than 7% market rate of interest which means that it will lead to a discount reason been that discount will often occur in a situation where the cost of bonds

is lower than the bonds face value which simply indicate that the value of the bonds will be lower than the face value of the amount of $300,000.

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PERSONAL FINANCE QUESTION PLS HELP
mr Goodwill [35]

Answer:

People often buy fewer goods and services

Explanation:

This is the only option that makes sense for the question. Economic slow down is marked by the movement of money slowing down. As the movement money slows people buyer fewer goods and services.

4 0
3 years ago
The journal entry to close income summary when there is a net income is (a) debit sales; credit income summary. (b) debit owner'
Alecsey [184]
I think it is A or B.
4 0
4 years ago
If 120,800 pounds of raw materials are needed to meet production in august, how many pounds of raw materials should be purchased
Yakvenalex [24]

Manufacturing units in July = 26000+(28000*25%)-(26000*25%) = 26500 gadgets kilos of raw materials have to be purchased in July.

Raw substances are the entered goods or inventory that a business enterprise wishes to fabricate its merchandise. Examples of raw materials include steel, oil, corn, grain, gas, lumber, woodland resources, plastic, natural gasoline, coal, and minerals.

Simple raw substances encompass sand (which include silica sand), clay, hard rock, limestone (together with metallurgical limestone) and gravel, and other construction and street construction materials. these materials are produced incredibly cheaply, with the primary fee being the transport to the development site.

There are predominant forms of raw substances: direct and indirect. Direct materials are unprocessed sources that can be especially traced to a stop product. Lumber is a good example of an instantaneous uncooked material.

Learn more about raw materials here: brainly.com/question/825024

#SPJ4

3 0
1 year ago
If the marginal propensity to consume is 0.5​, then the multiplier is 2 and the ​$25 billion increase in government spending wou
Jobisdone [24]

Answer:

This is correct.

Explanation:

The multiplier is what determines that how much of an injection actually impacts the economy. This means that an injection by the Government in the economy $1 usually has an increased net effect by the value of the multiplier.

Multiplier is calculated as

Multiplier = 1 / 1-Mpc, where Mpc = marginal propensity to consume

So we verify the multiplier,

Multiplier = 1 / 1 - 0.5 = 2

thus the injection of $50 Billion is brought by an initial government injection of 50/2 = $25 billion.

This thus confirms the statements.

Hope that helps.

5 0
3 years ago
A security with a level of systematic risk that is the same as that of the market has a beta that is
dybincka [34]

Answer:

equal to 1

Explanation:

Beta refers to a coefficient that denotes the degree of responsiveness of security returns with respect to that of market return. Beta is calculated as,

= \frac{Change\ in\ security\ return}{Change\ in\ market\ return}

which further means, beta is equal to deviation (risk) in security return w.r.t deviation (risk) in market return.

Beta is a measure of systematic risk which is, the market related risk to which whole of stock market is exposed to. Examples of systematic risk would be, change in the inflation rate, political instability, change in state of economy such as boom or recession, etc.

Systematic risk is not a company specific risk and thus, such a risk cannot be eliminated by a company via diversification of investments.

Thus, for a security whose systematic risk is equal to that of the market , it's beta will be equal to one which means the magnitude by which, the market falls or rises, the stock shall also fall or rise by the same margin. It also means the same direction of movement i.e if market rises, stock price would rise by same proportion and vice versa.

3 0
3 years ago
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