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2 years ago

Compare and contrast between bonds issued with coupon rate and zero-coupon bonds

Business

1 answer:

Ostrovityanka [42]2 years ago

5 0

Answer:

Compare and Contrast

Both bonds have face values.
Bond with coupon rate pays the interest whereas zero-coupon bond does not pay such interest periodically.
Bond with coupon rate is issued on the market value whereas zero-coupon bond is issued on deep discount value.
A Zero-coupon bond is more volatile than a bond with a coupon rate.
Usually zero-coupon bond has a higher yield rate than a bond with a coupon rate.
A zero-coupon bond may also help to save taxes whereas a bond with a coupon rate has tax consequences for the investor due to interest income.

Explanation:

Bond with a coupon rate

The bond issued with coupon rate has an interest rate which is used to calculate the interest payment or income. This bond is issued on the market value.

Zero-coupon Bond

The zero-coupon bond is a bond that does not have any interest and does not pay interest or receive interest income. This bond is issued at a deep discount value.

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Q 10.29: The current market interest rate for $1,000, 10-year bonds of large corporations in the food industry is 6.3 percent. I

Anuta_ua [19.1K]

Answer:

Convertible bond

Explanation:

Convertible bond refers to the bond in which the investor has an option to convert its bond into another form

By converting the bonds you get the lower interest rate as compared to before.

Therefore as per the given situation, if the one bond contains 6.3% and other contains 4.9% so this represents the convertible bond

8 0

3 years ago

A quantitative job evaluation procedure that determines a job's relative value on the basis of quantitative assessments of speci

ololo11 [35]

Answer:

A. The Point system

Explanation:

Job evaluation is the process of comparing the the value of a job in relation to other jobs. It compares jobs, to assess their relative worth for the purpose of establishing a rational pay structure.

The point system is a type of quantitative job evaluation procedure that breaks down job based on various identifiable factors such as skill, effort, training, knowledge, hazards, responsibility, etc. Thereafter, points are allocated to each of these factors. In this method of job evaluation, each factor is given weight based on their importance in performing the job. thereafter, points allocated to each of the are then summed and the job pay is allocated based on the total points of each job.

8 0

3 years ago

What is an arrangement in which the supplier maintains title to the inventory until it is used?.

Advocard [28]

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<u>Consignment inventory</u> is an arrangement in which the supplier maintains title to the inventory until it is used.

<h3>What is Consignment Inventory?</h3>

Consignment inventory is a supply chain model in which a product is sold by a retailer, but ownership is retained by the supplier until the product has been sold. Because the retailer does not actually buy the inventory until it has been sold, unsold products can be returned.

In other Term, Consignment inventory is a supply chain strategy or business agreement in which the consignor (i.e., wholesaler, supplier, manufacturer) gives the goods to a consignee (i.e., the retailer) to sell.

The consignor still owns the products and the consignee will only pay for them once they’ve been sold.

For instance, a retailer may strike up a consignment agreement with a fashion designer and agree to sell the designer’s clothes in-store. The retailer will only pay for the goods that are sold, and the rest will be returned to the designer.

Therefore, we can conclude that the correct option is B.

Your question is incomplete, but most probably your full question was:

What is an arrangement in which the supplier maintains title to the inventory until it is used?

A. postponement

B. consignment inventory

C. delayed transfer

D. supplier control

B. consignment inventory

Learn more about Consignment Inventory on:

brainly.com/question/13376533

#SPJ4

3 0

1 year ago

Luke invested $110 at 3% simple interest for a period of 6 years. How much will his investment be worth after 6 years?

Finger [1]

Answer:

investment after 6 years = $129.80

Explanation:

given data

invested = $110

simple interest = 3%

period = 6 years

to find out

How much will his investment be worth after 6 years

solution

first we get here interest that is express as

interest = invested amount × rate × time ..................1

interest = $110 × 3% × 6

interest = $19.8

and

investment after 6 years = invested amount + interest .................2

investment after 6 years = $110 + $19.8

investment after 6 years = $129.80

3 0

3 years ago

Why are the real income levels of Americans affected by rising prices?

Nat2105 [25]

"Real Wages" are wages that are adjusted for inflation and rising prices. As prices rise, people are able to buy less and less with their "nominal" (aka un-adjusted) wages.

One example is gas for your car. If you make $1000 a month and gas goes up from $2.50 to $3, your un-adjusted wages stay the same (you still make $1000) but you can't buy as much of other things because your "real" wages have effectively gone down due to the price increase of gas.

4 0

3 years ago