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Norma-Jean [14]
3 years ago
5

Which of the following statements is CORRECT?

Business
1 answer:
Mamont248 [21]3 years ago
4 0

Answer: c. If their maturities and other characteristics were the same, a 5% coupon bond would have more price risk than a 10% coupon bond.

Explanation:

Price risk of a bond is the risk that the bond changes price or rather the degree of price volatility. Bond prices change in reaction to market interest rates with higher rates meaning lower prices and lower rates meaning higher prices.

When the market interest rates rise above the Coupon on a bond, the bond price will fall below par and when the interest rates are below the coupon, the bond will be above par.

A 5% coupon bond will be more prone to changes in prices because market interest rates are generally low and fluctuate below 10% which means that they will affect the 5% bond more than the 10% because there are better chances of rates rising above or falling below 5% than there are of 10%.

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Baldwin Company had 40,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000 sh
Sindrei [870]

Answer:

$56,667

Explanation:

Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.

The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.

To calculate the Diluted Earnings per share,

40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.

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4 years ago
When an incident occurs and relevant agencies or departments are dispatched to the scene, the lead agency assumes Incident Comma
kifflom [539]

Answer:

When an incident occurs and relevant agencies or departments are dispatched to the scene, the lead agency assumes Incident Command and a PIO is designated. This person is usually A full-time PIO whose role has been predetermined in emergency plans and SOPs- B.

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4 years ago
Read 2 more answers
What is land as a factor of production?
marta [7]
Could be cause of trade , if you have land it is also good for crops which is production 
3 0
4 years ago
Smith buys and sells equity securities. On December 15, 2021, Smith purchased $542,000 of Jones shares and elected the fair valu
Kamila [148]

Answer:

$46,000

Explanation:

We can find out the the revaluation gain that need to be reported at the year end by just deducting the the cost of the investment by its current fair value .

DATA

Fair value = 588,000

Cost = 542,000

Revaluation gain = Current fair value - Cost

Revaluation gain = 588,000 - 542,000

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The revaluation gain of $46,000 will be reported in other compreensive income of smith's financial statements.

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3 years ago
Exercise 14-37 Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinen
FromTheMoon [43]

Answer:

the relevant cost will also include the differential cost for taking the order as it is related to the order being taken or not.

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The product is regularly used therefore, it will be sold in the future.

addtional inventory cost:

6,600 x (9.80 - 9.40) = 2,640

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<u><em>Total cost for the order 14,600</em></u>

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