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Alenkinab [10]
3 years ago
5

bonds that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are cl

assified as:
Business
1 answer:
Marat540 [252]3 years ago
5 0

Answer:

Trading securities.

Explanation:

A bond can be defined as a debt or fixed investment security, in which a bondholder (creditor or investor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time.

Generally, the bond issuer is expected to return the principal at maturity with an agreed upon interest to the bondholder, which is payable at fixed intervals.

The par value of a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid. Thus, a bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

In Economics, bonds could either be issued at discount or premium.

Hence, a bond that is being issued at a discount has its stated rate lower than the market interest rate, on the specific date of issuance. Also, a bond that is being issued at a premium, has its stated rate higher than the market interest rate on the specific date of issuance.

Bonds that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are classified as trading securities. Thus, trading securities such as debts or an equity are not held by business firms for a long-term period because they are purchased for the purpose of earning profits in a short-term period.

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You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize w
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Answer:

Present Value= $1,772.115

Explanation:

Giving the following information:

You have won the $3 million first prize in the Centennial Lottery.

However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.

We need to use the following formula:

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The fixed cost of a production system is $20,000, and the variable cost per unit product is $17. The product has a revenue of $2
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Answer:

Results are below.

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Break-even point in units= fixed costs/ contribution margin per unit

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Analyze the given scenario for potential ethical concerns.
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Answer:

GDP is likely to remain same as a result of this conversion.

Explanation:

GDP is the total value of goods & services, produced by an economy, during a given year.

It can be calculated by 2 methods

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