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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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In the context of the BCG matrix, which of the following businesses would be classified as a dog? a. Bigs Steel, a metal manufac
pickupchik [31]

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<em>A. Big steel, a metal manufacturer that has negligible market share in a slow-growing industry</em>

Explanation:

7 0
4 years ago
Benjamin, a military officer, strongly believes that a soldier has to do whatever it takes to protect his or her country. In the
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3 0
3 years ago
Tom needs a new washing machine. A new one costs $400. He decides to save and buy one next year. All other factors being equal,
TiliK225 [7]

Answer:

$416

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Inflation Rate = 4%

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= $16

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8 0
4 years ago
The rate of return on the common stock of Lancaster Woolens is expected to be 21 percent in a boom economy, 11 percent in a norm
natta225 [31]

Answer:

0.002244

Explanation:

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                  = 0.104

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= 0.002244

3 0
3 years ago
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