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Maksim231197 [3]
3 years ago
15

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 6%. These b

onds will sell at a price that is:
Business
1 answer:
Dennis_Churaev [7]3 years ago
8 0

Answer:

More than $500,000.

Explanation:

In the case when the coupon rate is more than the market interest rate so the bond would be on premium

And, if the coupon rate is less than the market interest rate so the bond would be on discount

And if both are equal so it should be in par

Now in the given case, since the rate of interest is 7% and the market rate of interest is 6% so it would be on premium

That means the bond price would sell at more than $500,000

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Rafi, a director of Super Service Station Corporation, does not attend a board meeting for three years. During that time, Twyla,
Varvara68 [4.7K]

Answer:

a. liable for negligence or mismanagement.

Explanation:

Given that,  

The cost of the improper loans = $100,000

Since the director of the Super Service Station Corporation does not attend a board meeting for three years plus the president Twyla had done the improper loans that reflect the mismanagement as without knowing the credit history of the people how it could make the loans.  

Moreover, there is no guarantee of returning the money so he is totally liable for his negligence or mismanagement

8 0
3 years ago
U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is
Andrews [41]

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky

4 0
3 years ago
To encourage compliance with its labor standards, the ILO relies on all of the following except:A) PublicityB) DiplomacyC) Techn
anygoal [31]

Answer: Option (D)

Explanation:

<em>ILO</em> is abbreviated as <em>International Labour Organization</em> is known as the UN body whose decree is to provide advancement in the social justice and thus also promote the respectable and appropriate work thereby setting and developing the international labour specifications. It is considered as the first specialised body of the United Nations.

ILO does not uses Lawsuits in order to encourage compliance with the labour standards.

8 0
3 years ago
In a perfectly competitive industry, the short-run supply curve for the market is the:
DENIUS [597]

Answer:

b. marginal cost curve above the average variable cost curve.

Explanation:

A perfect competitive indsutry is a characterised by many firms selling homogenous goods and services. Firms are price takers and there are no barriers to entry or exit of firms in the industry.

The supply curve of a perfectly competitive firm in the short run is the part of the marginal cost curve that lies above the average variable cost curve.

A perfect competition maximises profit where price equals marginal cost.

I hope my answer helps you

3 0
3 years ago
If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the eco
coldgirl [10]

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.

4 0
3 years ago
Read 2 more answers
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