1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
BigorU [14]
2 years ago
13

How do bonds earn income

Business
1 answer:
mario62 [17]2 years ago
8 0

Answer:

The owner of the bond receives interest payments, known as the coupon, throughout the life of a bond, at the interest rate that was determined when it was issued.

Explanation:

They are debt obligations, meaning that the investor loans a sum of money (the principal) to a company or a government for a set period of time, and in return receives a series of interest payments (the yield).

You might be interested in
Briefly explain the field of money management.
Arada [10]

Answer:

Money management simply means liquidity management.This in business parlance means the ability of the organisation to have to funds required as and when due

Explanation:

Strictly means being able to receive cash from customers in short time and the ability to pay suppliers on time which means neither too much in cash than needed or too little

3 0
3 years ago
Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $
Reptile [31]

Answer:

Correct option is C.

<u>$25,000, $25,000.</u>

Explanation:

Gross profit on sale = (300,000-250,000)/300,000 = 16.67%

Gain recognized in:

Year 1 = 150,000 * 16.67% = 25,000

Year 2 = 150,000 * 16.67% = 25,000

3 0
3 years ago
In 2008, expected inflation exceeded inflation. in 2009, inflation exceeded expected inflation. therefore the real interest rate
Nastasia [14]
Expensive cost with Trade interest
4 0
3 years ago
You’ve collected the following information from your favorite financial website.
Nataliya [291]

Answer:

-9.92%

Explanation:

P₀ = Div₁ / (Re - g)

  • Div₁ = next year's expected dividend = $1.12 x (1 - 11.5%) = $0.9912
  • Re = cost of equity = ?
  • P₀ = current stock price = $62.91
  • g = dividend's growth rate = -11.5%

Re =  (Div₁ / P₀) + g

Re = ($0.9912 / $62.91) - 11.5%

Re = 1.58% - 11.5% = -9.92%

Since the cost of equity or required rate of return cannot be negative, I suppose that investors are not worried about Abbott distributing dividends, instead, they prefer that the company reinvests earnings in new projects.

3 0
3 years ago
Product Life Cycle All products pass through a product life cycle of four stages: introduction, growth, maturity, and decline. T
Rudiy27

Answer:

The answer is

                               Introduction stage                     Maturity stage

Product                    Gatorade                                   Crest

Price                          Rusk                                          Airwalk

Promotion                Listerine                                    Sony

Place                         Merck                                        Domino's

Explanation:

                               Introduction stage                     Maturity stage

Product                    Gatorade                                   Crest

Price                          Rusk                                          Airwalk

Promotion                Listerine                                    Sony

Place                         Merck                                        Domino's

A marketing mix is a combination of factors that can be controlled by a company to influence its existing customers and potential customers to buy its products.

The above chart explains the marketing mix of the companies and its stages in product, price, promotion and place.

3 0
3 years ago
Other questions:
  • Suppose Boyson Corporation's projected free cash flow for next year is FCF1 = $150,000, and FCF is expected to grow at a constan
    13·1 answer
  • Several students are arguing over the actual year that the berlin wall came down. some of the students think it was in 1990, sev
    6·1 answer
  • The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. Calculate the required rate of retur
    6·1 answer
  • In one state, a lender holds a lien on real property offered as collateral for a loan. The borrower retains both legal and equit
    7·1 answer
  • Xin Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 10,000 units were completed and as
    9·1 answer
  • Dave's firm had grown steadily and the products and systems had become more and more complicated. He had been a star representat
    9·1 answer
  • On June 30, 2020, Pier1 Inc. issued 500 shares of $1 common stock for $15 per share. On June 30, 2020, Pier5 Inc. reacquired 100
    9·1 answer
  • Money is: multiple choice any good that buyers and sellers have a desire to purchase, use, or hold. anything that both buyers an
    11·2 answers
  • Which of the folloiwng is an example of direct finance?
    9·1 answer
  • What happens to the total surplus in a market when the government imposes a tax?.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!