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ycow [4]
3 years ago
5

When bonds are sold at a premium and the effective interest method is used, at each interest payment date, the interest expense:

a. Remains constant.b. Is equal to the change in book value.c. Increases.d. Decreases.
Business
1 answer:
Alex73 [517]3 years ago
3 0

Answer:

decreases

Explanation:

When bonds are sold at a premium, it is sold at a price higher than the par value. For example, if the par value is $100, the bond would be selling at a premium if it is sold at $101. At expiration of the bond's tenor, the price of the bond must equal its par value, so at each each interest payment day, the interest expense decreases

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the gradual reduction of regional constrasts resulting form increasing cultural, economic, political and other types of exchange
kondor19780726 [428]

Answer: Globalization

Explanation:

The globalization is the process of gradually reducing the regional contrasts due to the increase in the interaction and exchange different types of culture, political and the economic.

The main aim of the globalization is that it communicate on the international platform by using the different types of strategy for the business, political and also due to the environment development.  

 There are different types of benefits which is provided by the globalization that are:

  • High quality products and the services  
  • Greater economical efficiency
  • More international trading

 Therefore, Globalization is the correct answer.

3 0
3 years ago
How much must harry's hardware deposit at a 14.5% annual interest for 240 days in order to earn $500 in simple interest?
marissa [1.9K]

To get the formula for the principal, we will use the formula for the interest and derived it from there:

I = Prt is the equation then it will be P = I /rt since we are looking for the principal.

 

P = I /rt

 

= $500 / (0.145 x 240/360)

 

= $500 / 0.0967

 

= $5170.63

 

To check:

I = Prt

 

= $5170.3 x 0.145 x 240/360

 

= $499.8 or $500

5 0
3 years ago
Read 2 more answers
Morgan Company issues 9%, 20-year bonds with a par value of $750,000 that pay interest semiannually. The current market rate is
Leno4ka [110]

Answer:

$33,750

Explanation:

Given that

Bond per share = $750,000

Issued Amount = 9%

The computation of amount which is to be paid to the bondholders for every semi-annual interest payment is given below :-

Interest payment = bond per share × issued amount × (number of months ÷ total number of months in a year)

= $750,000 × 9% × 6 months ÷ 12 months

= $33,750

7 0
2 years ago
If investors speculate in derivative contracts rather than the underlying asset, they will probably achieve ________ returns, an
Ede4ka [16]

Answer:

Explanation: do your best and i hope you do good

8 0
2 years ago
In the Month of March, Digby received orders of 164 units at a price of $15.00 for their product Don, and in April receives an o
qwelly [4]

Answer:

Sales for March, 164 * 15 = $2,460

Explanation:

According to the accrual system, the purchases and sales are recorded when they occur. When compared to the cash basis, they are only recorded when actual cash is received or paid for them.

For March the transaction of 164 units has occurred and thus this sale will be recorded.

Sales for March, 164 * 15 = $2,460

This is the revenue recorded for March under accruals, for cash this would have been 0.

Hope that helps.

8 0
3 years ago
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